Essence of Wealth Building

The essence of making moneyIncrease assets and reduce liabilitiesTypical stage planning: working, investing, starting a businessImproving your ability to work at the beginning is the most effective way to increase your assets.so-called primitive accumulationIn other words, improving the ability to work is to improveProfessional abilities, interpersonal relationships, professional qualities, etc.A popular version of wealth planning:At the age of 25-30Focus on improving your part-time job capabilitiesYou can develop investment skills in your spare timePut a small amount of energy into improving investment capabilitiesFor example, Bitcoin cycle, index fixed investment, financial management skills, asset allocation, etc.So at this ageThe main way to increase assets must be the ability to workA small part of the way is investment incomeAt the 30-35 stageThe ability to work has gradually maturedFunds have also accumulated to a certain extentSlowly reduce this part of your energyStart focusing more on improving “investment returns”The result is:Adding assetsThe proportion of income earned through investment will gradually increaseIn general, this stageThere are two ways to "increase assets"That is working and investingThen I reached the age of 35-40The investment income can fully cover your daily expensesThe ultimate state isThe return on investment not only exceeds daily expensesIt can far exceed the income from part-time workReduce debtAnything that cannot bring you cash inflow is a liabilityFor example, if you buy a houseYou need to pay the mortgage every monthThat is a liability.Of course that doesn’t mean you can’t have debtBut to reduce debtIf I had enough ways to increase my assetsThen I can naturally increase my debtsUnderstand what are assets and what are liabilitiesMake a reasonable allocationDon’t buy a house thinking it’s an assetDon’t think of borrowing money as a liabilityOf course, failure to borrow money to invest is a kind of liability.Why accumulate assets?Assets can bring you income when you are not workingAbout entrepreneurshipFrom employee and freelance statusConversion to Investors and Entrepreneurs Most People Can’t DoBut there must be a consciousnessDon’t be numb and become an employee.I just want to work all my lifeIt’s about expanding new possibilities in life.If you are a lifelong learnerYour abilities will definitely continue to improveWorking part-time will definitely not satisfy your thirst for knowledge.Your ability has exceeded your status as an employeeYou will try to invest and start a businessOf course, you are a person who doesn't like to studyDon’t try investing and starting a businessFailure is inevitableBecause this requires extremely strong comprehensive abilityIt's not like workingMastering one skill is enoughBeing poor and happy is also a kind of lifeExtensions from "Rich Dad Poor Dad"

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