Have you ever thought about how to get out of poverty?

“Poverty” seems to be poor, but poverty is a relative concept, depends on who we compare to. Poverty is an absolute concept, it can also be used before we achieve financial freedom. But why are we so poor, how do we get out of poverty and achieve financial freedom? This is a question worthy of our deep consideration.

Knowledge changes fate, this is not a blabber, people who do good in school, usually won’t be too bad, the amount of knowledge determines where the lower limit of your life. Study is the best shortcut for the poor to move across the class.

Perhaps we all know the importance of studying, but not everyone can endure the hardship ness of studying. However, they always say that those who did not study, still make a lot of money, such as Bill Gates, who did not graduate from university, still become the world’s richest. But they don’t know that most of the rich we know are highly educated, Bill Gates also comes from Harvard. 

Don’t say studying is useless, only by studying more, you can see the wider world, can accept the most advanced knowledge, can easily enter the hall of success. It is true that there are people who succeed without studying. But we cannot ignore a proportion problem, tens of millions of people who do not study but maybe only one succeed.

Graduate from primary school, graduate from high school, graduate from college, work will be different, perhaps there is no difference at present, perhaps students who just out of college have nothing, and the students who came out a few years ago already have a car. But ten or twenty years from now, the difference is big;

Of course, learning is not only studying, all aspects of learning are important, learn a technology, learn a specialty is also learning. But all need a certain theory as the basis, otherwise, you won’t understand the high-tech learning. Only continuous learning will not be eliminated.

Hard-working can get rich, but passive income is important too

Labor is the key to getting rich, and only hard-working families will be rich. I never deny the correctness of this sentence, labor to get rich, non-stop labor, non-stop get rich, but in the end, you won’t get that rich. Most of the people around me are like this, every day working very hard, able to earn some hard money. As my mother said, do a day, only one day’s money, if you stop, you have no money, I will not do any big business, big business can only earn some hard money.

Hard work can only solve the problem of food and clothing, as long as not lazy, you won’t be hungry, but to become rich is almost impossible. And this period you cannot get sick, otherwise can only return to the liberation overnight.

I remember when we took a financial management class at college, our teacher told us that when we were 40, our non-wage income was more than 50% of our total income, and then the proportion was higher and higher. Non-wage income or passive income, that is to say, do not have to work also have money. So where does the income come when you do nothing?

The simplest is interest income, of course, today’s young people will not go to the bank to save money, but this interest income is too little. When young, we should take more risks, we can choose a few high-dividend stocks, such as AbbVie, Brookfield Infrastructure Partners, etc. , fixed investment in a few index funds or high-dividend funds, such as liquor, consumer industry, food industry, science, and technology industry. We should accumulate more principal when we were young, do not spend all your income, living by wages.

Second, intellectual property revenue, such as the publication of a best-selling book, there will be a steady stream of income, such as the invention of patented technology, will receive sustained patent revenue, such as the development of a game, can continue to make money.

Passive income always required you to give efforts first, it is impossible to get it from the sky. Unless you come from a rich family, get from the lottery, but this is not the group we discuss. 

Sometimes wealth comes fast, go fast, we need to continue to advance.

Have you thought about getting rich?


When life is smooth, risk awareness can not be less

In one’s life, there will always be setbacks, risks, accidents. It’s a good thing that no one wants it to happen, but it does happen.

What we need to do is to plan ahead, choose the right tools in advance to avoid risk, when the risk really comes, we can pass on the risk. I suggest that ordinary people need at least one serious illness insurance because we can see a lot of people who are poor because of illness.

None of us want to see the risk, none of us want to see ourselves or the people around us get into accidents, none of us want to see ourselves or the people around us sick. We all want to live a good life in good health, but we can not guarantee that our lives will be safe.

The current success, can not guarantee the future success; Once famous, in the future might not be any more… Therefore, we still have to plan ahead, or have a sense of risk, do a good job in advance of risk planning.