Hi, girls and boys, welcome to Uncle Cat Talking about Coins.
"Change is the only constant in life" profoundly reveals that our life is full of drama. Many people are keen on various games, but in fact, life is the most interesting game.
A lot of changes have taken place in recent years, and the most significant one is the "mask" crisis. This crisis has sounded the alarm for people all over the world! Too many people have gone bankrupt due to unexpected situations in recent years, too many companies have closed down, and too many countries have retreated economically. As our pace of life gets faster and faster, this "change" may also occur more and more frequently.
Investment is a person's guarantee for future life, a basis for turning things around in difficult times, and a way to increase the value of one's assets. But for most people, they actually don't know how to invest. Today, Uncle Cat will tell you about 7 habits. If you learn these 7 habits, please leave a message. I will update new advanced articles later, and you will gradually become a qualified and efficient investor!
The first habit: make a financial reserve plan as early as possible.
If you have a certain amount of funds on hand, which may be tens of thousands or hundreds of thousands, you need to learn to make a savings plan. In fact, many large companies have a salary reserve plan for their employees, which is a disguised way of saving pension funds for employees. As long as you learn to save funds in a planned way, it is a good start.
And a very important point is that when you deposit money in a fixed account, you see the funds in your account gradually growing in your daily life, which will have a positive impact on your life and work.
Habit 2: Anticipate your potential financial situations
Make a plan for your life, make a plan for your career, and make a plan for your funds.
When you make a plan, you will have a clear idea of how much money you need to spend to deal with how much trouble you will have at a certain stage in your life. In fact, for most people, their financial planning is just a pension, which is wrong.
In fact, in addition to the pension system established by the state, you also need to make a retirement pension plan for yourself.
Do you have enough savings for retirement? Many people probably don't.
In fact, the concept of retirement is not retirement from your job when you reach the legal age. In fact, when your accumulated funds reach your psychological expectation and you think you can live comfortably without working, you can retire early. Retirement is not a system, but a mentality.
When you set a plan for your life, you also make a plan for your income and expenditure, so that you can get the fixed amount of money you can save, and then set a financial expectation for your future retirement life, and then slowly realize it. Please note that the expectation here is not a luxurious life with yachts, luxury cars, villas, etc. There are only a handful of people in the world who can live like this.
The third habit: learn to allocate your assets and diversify them.
Asset allocation is actually a topic that I have been studying for a long time, and it is also something I have been doing for many years, not only for myself but also for many bosses, friends, etc. in the circle.
Simply put, when you have a sum of money, you must understand that in addition to daily consumption and purchasing fixed assets, you must also use this money for other purposes. The purpose is to achieve wealth growth and resist inflation.
When you have a certain amount of funds, after purchasing fixed assets, you need to consider how to plan your investment. Simply depositing the money in the bank to earn interest is the simplest way to play, and often you cannot beat inflation.
Therefore, in this process, you need to deposit 20% of the funds into your daily account, so that you can earn interest and it will also be convenient for you to deal with daily emergencies. For 50%, you need to make some value investments, such as government bonds, funds, etc. Relatively stable and long-term investments are a good choice for you, with low risks and small profits, and long-term returns. For the remaining 30% of the funds, you can consider making some investments in stocks, spot or crypto markets. This type of investment has higher risks and good returns, but the time for the returns to take effect is shorter. At the same time, when making venture capital, if there is a serious loss, you must not easily use the funds in your other sectors, because those funds are your future life guarantee.
It should be noted that the above plan is just a simple setting. Different reserve funds have different setting plans, and they should also be formulated according to the personality of the fund holder. Please do not generalize!
Habit 4: Keep your expenses low
In fact, this is very simple, but also very difficult. The simplicity lies in keeping a low cost of living and being frugal, which is something you can do as long as you set rules. The difficulty lies in how you control your desire to spend and your desire to compare.
In fact, for more than 90% of people in life, living in the fast-paced contemporary world, it is inevitable that they are impetuous, naturally they are competitive, and their desire to consume becomes too strong. It is recommended that you calm down your heart. When you are eager to buy an item, you must weigh it in your heart whether it is a necessity in your life and whether it is suitable for consumption. At the same time, maintain a good attitude, learn more, read more, make your heart stronger, let your confidence come from your heart rather than from things outside yourself, so that your desire to compare will become smaller.
In fact, what is mentioned above is a little difficult. If you observe carefully, you may find that the bosses, entrepreneurs, and rich people around you actually live a rather "stingy" life. On the contrary, those working class, white-collar workers, and gold-collar workers work hard to make money just to enjoy a good life, and they work hard to buy things without making plans for their future.
This is a cruel fact. When a person has a short-term vision and low cognition, they only see material desires. When a person has a long-term vision and high cognition, he will naturally see something different.
The fifth habit: Learn to improve your knowledge and use professional advisors appropriately
Investing and managing wealth are actually beyond the reach of many people. Of course, one of the biggest possibilities is that they cannot control their desires. Therefore, it is necessary to keep learning, even if it costs some money to learn, to improve your cognition. Don't be afraid to spend money to learn things, because if you don't spend money to learn, you may have to pay the tuition to another place. At the same time, if you really don't have time, you can find some professional consultants to consult on related topics. Please always believe that professionals can do professional things well. Everyone in this society must learn to perform their duties, and it is impossible for someone to be omnipotent!
The sixth habit: Spend less than your income!
This may be really difficult. With the rapid development of the times, we can find all kinds of overdraft consumption around us, so advance consumption and overdraft consumption have become a common thing.
But this is really not good. If you cannot manage your problem of overspending, you may not be able to complete the plan making we talked about at the beginning. If you cannot make a plan, you may not be able to become a qualified investor.
Therefore, reduce advance consumption, lower the amount of daily expenses, and make your consumption less than your income. Only in this way can you have sufficient funds to make your plans.
Point 7: Understand your own risk tolerance.
The term risk tolerance is actually very illusory, and many people are unable to measure their own risk tolerance. In fact, think about it from another angle. If you consider your relatives, parents, wife, children, work, etc., and the impact of these people and things on you, or consider what kind of crisis may be brought to these people and things when you face a financial crisis, you will be able to make a clear judgment on your own risk tolerance.
In fact, in the investment market, many people have a gambler mentality. They often do not understand their risk tolerance, or they know but ignore it. In this mentality, they ignore the risk points in investment. You must know that even if an investment has only a 1% risk, there is still a risk. Don't ignore it because the probability is small. Because your neglect may cause you to suffer a lot of losses, and because you do not consider your risk tolerance, your losses may directly ruin your life.
The above 7 points are the experience that Uncle Mao has summarized in the investment field for many years, including his own experience and the experience he has gained from his friends. In fact, many of the concepts mentioned in the article are general concepts. There is no way. If you go deeper into this concept, there may be many branches, which may become an independent research project.
Therefore, the above content, through some general concepts, is sent to all friends, whether you are a student, an office worker, an entrepreneur, or an investment expert. I hope that these contents can be helpful to you, and I also hope that these habits can truly change your life.
If you have any questions, please leave a message to Uncle Mao. If you still want to continue reading this series, Uncle Mao will also update the advanced version of the content later - for example, if you have XX funds, you can choose which types of investment.