A Probe into Personal Finance (5)

Concept of wealth

What is the correct concept of wealth?
When you are poor, you have to work hard, develop ideas, and go all out when you work. When you are rich, you have to invest carefully. Because sometimes, a very good opportunity may not seem to be the case.
If you do it inadvertently, the poor can always sink into the mud of poverty. Just like doing business when only 50,000 US dollars is on hand, it may not be enough to turn it into cost, and it is not enough to turn it into cost.
What if you do n’t even have $ 50,000 on hand? There are two ways besides working hard: 1. Read more 2. Think more
Sometimes, it seems that there is no opportunity. If you think more and study more, you may be able to find opportunities from a situation where there is no opportunity. But to analyze whether this is a real opportunity depends on your own reading experience. Sometimes, of course, you can ask others, but if you have a vision, would n’t it be better.
The same is true for stocks and futures. Someone once made 30% of a stock in a bear market for a few months, because he has a very deep or far superior analysis of the stock’s industry and itself. With this vision, it is easier to succeed if you go to stocks.


Before starting a business, you must first ask yourself, why start a business? If the company is established, for what reason can it beat most companies on the market? At least better than 80% of the company. If not, why? If so, how many years?
Of course, there are many people who just start business because they are at odds with their bosses, or because they see that it is easy for others to start their own business, or they see a good opportunity for career development. But please pay attention! The reason for many people’s successful entrepreneurship is not what the outsiders see.
Imagine it. If it is so easy to succeed for the reasons you see, is it not a successful company everywhere?
Like someone starting a business many years ago, he went to borrow some money. But going to the bank for a loan requires collateral. Where did his collateral come from? There is learning here.
So, don’t be fooled by superficial phenomena. What we really need to study is the nature of things. Just like looking at a person’s behavior to see his essence, seeing the development of an enterprise also needs to see his essence. In other words, if the development of this enterprise comes down to one sentence. In this sentence, if you want to start a business and create a company like him, can you do it? Whether it is done or not, what is the reason?
and! It is also important that if you just start a business and encounter a bad external economic environment, the expected volume of business plummeted. What should you do then? Can you hold on for a few months? In the process of supporting, what can you do to make your own company develop other business points? Is this related to your original knowledge?
It’s not that other successful big group companies are doing this across borders, but that their commanders have enough ability, that is, enough knowledge transfer ability. Is this ability enough for entrepreneurs in small and medium-sized enterprises? Why can beat them? More books than they? Do the business bigger than them? Or is the personal experience more abundant than those? These are questions to ask yourself.

Stock investment

Buying stocks means buying the future development of the company you are buying.
Then, ask yourself. How is the industry development of this company? What is its own development? Where are their risks? If you bought it, what is your profit plan? Is it a few days? Months? Still a few years? How much do you want to earn? If I lose money, when will I lose it?
If these things are not clear, there will be the following situation: Someone bought a stock more than ten years ago, leveraged, and then there is still 5% to be liquidated, he had no choice but to give up. As a result, as soon as he sold, not long after that, the price of the stock itself had increased several times.
A person has confidence in a stock or an industry. This confidence must be supported by certain arguments that can withstand scrutiny.
Deciding to buy it yourself is like writing a financial analysis report.
And it must go through careful analysis and research. Imagine writing this report. If someone wants to disagree, where will they start? No matter how much your capital stock is, you have to do enough research yourself.
Only with sufficient preparation will the probability of future failure be less.

Fund related

Many people are busy with their work and do not have much time to study, so they set aside money for the fund. This is indeed a better way to manage money. However, please note that if you feel that the ceiling of your job is obvious, or if the salary of your job is not satisfactory for a long time, you can also accumulate enough money for yourself. After one or two years, if you have enough principal, and also study some high-risk investment varieties such as futures, you can try to invest.
Of course, high risk means that the possibility of failure is great, but this can be used as a pioneering point for the development of their own careers. When you are poor and have no confidence in yourself, it is difficult to improve your economic situation.

About borrowing

There must be a clear understanding of borrowing money. Rather, it is necessary to carefully consider whether the person is worth borrowing and whether he has the ability to repay the money. In particular, don’t expect to obtain possible non-monetary benefits from others.
Because if you have enough money, don’t lend it to others, there is a great hope that you can use money to exchange for certain opportunities.
If you are not rich enough, whether to lend money to others is a lack of value in the eyes of others, and others will not give you related opportunities.

Other articles in this series

A Probe into Personal Finance (1)
A Probe into Personal Finance (2)
A Probe into Personal Finance (3)
A Probe into Personal Finance (4)

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