What is the most important thing to realize financial freedom?

Realizing financial freedom is a dream of many people, but most people feel that this dream is out of reach. In order not to let everyone give up hope, hot mom once wrote an essay "The Story of Financial Freedom Around Me" on 20 15. Three years later, hot mom considered writing a second book, because there are more "free" children's shoes around her.

Back to the keyword "financial freedom". At the beginning of 2065438+2007, Hurun Research Institute released a report, which said that the threshold of financial freedom in China has reached 290 million, while that in second-tier cities has reached 65438+700 million. This is amazing, not only because these are two astronomical figures, but also because when the report was released, this standard was 50% higher than just one year ago!

It has increased by 50% in one year. Why? Hu Run said: "The threshold of financial freedom has risen by 50%, which may be mainly due to the rapid rise in housing prices and the depreciation of the RMB." Indeed, the housing prices in the north, Guangzhou and Shenzhen soared at a rocket-like speed in 20 16, which is very different from today's land auction. Therefore, the first step of financial freedom seems to be to buy a house first! ?

Although 290 million yuan is less than three "small goals" for Wang Jianlin, it is astronomical for an ordinary person. If you work 50w a year (even in the north, Guangzhou and Shenzhen, your income is high), if you have no other income and input, you will work for 580 years without eating or drinking! In contrast, the Tang Dynasty was less than 300 years old. Does that mean that ordinary people have no possibility of achieving financial freedom? Hot mom thinks it's not so absolute. In the hot mom's view, for ordinary people, the most important factor to realize financial freedom is: live long! In fact, it is not investment ability!

Why? As long as you live long, even if you don't earn much every year, you still have the opportunity to achieve financial freedom.

With the help of compound interest

Do a simple calculation, assuming that you can save 20w for investment every year (not too difficult for white-collar workers in Beijing, Guangzhou and Shenzhen who are about 30 years old), the average annual return on investment is 10%, and it only takes more than 50 years to accumulate to 290 million. If you can save 200,000 yuan every year at the age of 30, you can achieve three small goals worth 300 million yuan at the age of 80! This has not taken into account that during your career advancement, the amount of investment you can save will increase year by year, and the time to realize financial freedom will be greatly shortened.

Even if your annual return on investment is less than 10%, or you can save less than 200,000 yuan every year, considering the impact of compound interest, it is not impossible to accumulate to 290 million. Therefore, as long as you can live long enough, with the help of compound interest, you are hopeful to achieve "Hurun-style financial freedom".

What's more, for many people, the standard of financial freedom does not need as much as 290 million. 654.38+0 billion, 50 million, 30 million, 654.38+0 billion may be your standard, depending on what kind of life you want.

In fact, there are many long-lived rich people in the investment community, and their wealth appreciation rate is amazing with age. This is because investment, like keeping healthy, requires self-discipline and long-term persistence. In addition, their investment level is higher, so the return brought by longevity to these investors is far more than achieving "small goals". Among these long-lived investors, Warren Buffett is the most familiar.

With the continuous rise of Berkshire Hathaway's share price, the media reported earlier on 20 18 that Buffett's assets had exceeded10 billion dollars at the age of 88. Among them, in the last six years alone, Buffett's wealth has increased by 45 billion US dollars, with an average annual growth of 9 billion US dollars and a daily growth of 24.65 million US dollars, with an increase of 17 1 1 US dollars per second.

The old bus attracts gold at an amazing speed! Another amazing fact of Buffett's wealth accumulation is that, according to Business Insider, 99% of Buffett's wealth was acquired after his 50th birthday. The effect of long-term residence on wealth accumulation can be seen. Let's look at the milestone of Buffett's asset appreciation.

20-30 years old, 65.438+million dollars, value-added way: newspaper delivery, stock investment, pinball game business.

3 1 -40 years old, millionaire, value-added way: Benjamin Graham works in the company and invests in stocks.

40-50 years old, 67 million dollars. Value-added mode: The assets of the joint venture company reach $65.438+0.04 billion, and the control right of Berkshire Hathaway is obtained through the purchase of shares.

Most people can't afford Buffett's stock.

50-60 years old, billionaire, value-added way: operating company, stock investment.

60-70 years old, billions, value-added way: operating company, stock investment.

79-80 years old, more than 40 billion dollars, value-added way: operating companies, investing in stocks, participating in charity.

80 years old-now, more than 654.38+000 billion dollars.

It can be seen that the old bus is not worth hundreds of millions at a young age like some internet upstarts. He never expected to get rich overnight. His wealth appreciation is very stable and keeps growing. So the hot mom thinks that the mentality of the old bus must be very good, and this mentality should also be one of the secrets of his longevity.

Second, seize the opportunity of economic cycle.

If you live long enough to experience more economic cycles, you are more likely to seize opportunities in the early stage of economic growth.

The causes of economic cycle are very complicated, and it is generally believed that economic cycle is a manifestation of market regulation. Take the United States, the world's largest economy, for example. Before the 1970s, the average American economy contracted by about 12 years, and almost every recession in the United States would lead to a global economic depression. However, after the 1974 Bretton Woods system collapsed and the dollar was no longer linked to gold, this law changed: the economy of the United States still runs in a cycle of about 12, but every time the United States recovers from the economic crisis, other regions will fall into recession. This is because American capital has a great influence on the economic development of many countries and regions. The economic situation in China is also closely related to the world economy, especially the economic situation in the United States.

If you can understand this, you should understand that every 12 years or so, you have a chance to really copy the bottom of the economy, sometimes even without 12 years, and short-term fluctuations will even go back and forth in 5-7 years. This is because the length and fluctuation of the economic cycle may change. As long as people's irrational behavior still exists, the economic cycle will always exist.

Give two examples that everyone may know. After the subprime mortgage crisis in the United States in 2007, whether buying American real estate or buying American stocks, or even passively investing in index funds, it doubled in a few years. For example, after the 2065 438+05a-share crash, many good stocks were smashed to the bottom, and there was no liquidity at all. It was quite profitable to buy a little at that time until the end of 20 17.

If you can live long, you will have more opportunities to seize this economic cycle. More importantly, when the opportunity comes, you will have more capital to serve. As Buffett said: I am afraid when others are greedy, and I am greedy when others are afraid.

Third, take advantage of the time difference of regional development

In addition to grasping the opportunity of economic cycle from the time dimension, we can also grasp the opportunity of time difference from the space dimension. In the 1990s, European and American capitals poured into China, invested in various industries, agriculture and service industries in China, and made a lot of money. Around 2000, VC from the West poured in huge sums of money and invested in the Internet industry in China, earning a lot of money. Why are western investors so magical? It's actually quite simple. They just know the answers to the test paper in advance.

After China embarks on the road of market economy, its development track is bound to be similar to that of Britain and the United States. Moreover, since China has learned from the experience of developed countries, its development will be more rapid and amazing. Investing in the right industry in China at the right time is an absolutely reliable investment! What does this inspire us?

Many countries in the world lag behind China. Today, some of them were China 10 years ago, and some were China 20 years ago. One thing is certain, they will become China today! This is the great opportunity contained in the regional time difference. How can we seize this opportunity? Again, living longer can help you accumulate more experience and principal, and you can have enough capital to serve when the opportunity comes.

Recently, the China-Africa Forum has become another focus for everyone to discuss the "East Brother Incident" after dinner. However, few people realize that although the population of Africa is only 65.438+0.2 billion, which is only equivalent to the population of China, it has a very high birth rate of 4.66. In our lifetime, if they continue to live like this, the population is likely to exceed 2 billion or even reach 3 billion.

Population is not only a consumption factor, but also a productive force, which is a very important variable in the long-term economic development. First of all, to feed the new population, we need to import grain, do our best to build new water conservancy facilities, import fertilizer and feed, and develop modern agriculture. With the gradual development of society, African people need more and better housing, transportation facilities, energy, education and everything we have. At the same time, dense population can provide extremely cheap labor.

And what about this side? China's population is aging, industrial products are dumped, infrastructure capacity is exported, and Internet services are going abroad. Think about this continent with a large population and booming supply and demand. Is Africa as important to us as China was to the United States 30 years ago? In fact, many of our enterprises have seized similar opportunities in Southeast Asia and India.

Of course, Africa is still very backward at present, with high national risks, imperfect legal protection, unstable business environment, weak industrial base, backward financial and scientific development, and poverty and hunger are still with them ... Indeed, it is still difficult to transfer industries to Africa at present, and it is also difficult for us to invest directly in Africa, but if we keep our attention and continue to follow up, there will be great gains waiting for us.

Make the necessary preparations.

In the hot mom's view, preparations should be divided into two categories. The first category is thinking and learning, such as spending enough time paying attention to social development, economic scale and business opportunities, and thinking about the points that you can use in combination, as summarized by hot mom. The second category is the preparation of bullets. If there is no annual income and no principal, then even if you see it, you will suffer from nothing to incite.

In fact, since the current US dollar interest rate hike cycle, US stocks have stepped out of the bull markets of 20 16 and 20 17. Therefore, although the index is still rising, many Chinese stocks have already experienced a situation that even if their performance continues to grow, their financial reports will fall, indicating that the expected growth rate of the market is higher than the realized growth rate.

In fact, no matter how you judge the market outlook, you may continue to rise, but your marginal income will become very small after so many market rises. For investment, in fact, there are not many cheats, that is, stepping on the right rhythm, grasping the cycle and buying things cheaper than the value will always get the biggest margin of safety and profit space.

Therefore, from the end of 20 17, the hot mom gradually left the US stock market, even if it rose by 20%. At the same time, I was reminded to stay away from A shares in the first half of this year and talked about several recent things. The children's shoes bought on 20 17 are estimated to have stood on the hill in a short time, but with the gradual increase in the number of land auctions, it is even more impossible to raise prices now unless it is just needed. In addition, P2P thunder is frequent, so it is not easy to vote unless you choose a credible platform. So this year, in fact, one point that hot mom has been emphasizing through many articles is "hoarding cash"-there is a wonderful but useful financial management skill.

Withdrawing cash does not mean that you can deposit your money in a bank account for a period of time and choose the money fund at the head (the nature of Yu 'ebao). Now you have to have a current income of more than 4%. Hot mom recently introduced one, and the official WeChat account of hot mom can be viewed by replying "Current". At the same time, after the previous A-share crash, the trading volume has further shrunk in the near future, and the market is extremely deserted, which shows that the cheap investment options with strong safety margins will gradually emerge. Because I don't know when the market will pick up, the fund's fixed investment has become a better choice. Over time, the income will be very considerable. WeChat official account, hot mom, reply to "Fund Fixed Investment" to view relevant suggestions.

Generally speaking, if you want to invest and manage your life well, you must have a "long-distance running mentality". Getting rich overnight is unrealistic for most people. However, if you do a good job in health management, live a good life, strive to improve yourself, increase your income, and then invest in financial management properly, your financial freedom may not necessarily come. Let's live together a long time ~