The "Nangong Reading Club" "The Road to the Freedom of the Freedom of the Father" needs to use the mind to see through the assets and currencies

Issue 124

Hi ~ Hello everyone, I am Nangong Minling, this issue of the last part of the first part. The first part is to know the cash flow limit. If someone reads the first part and feels that his current situation is good enough, then the subsequent content is not suitable for him.

In contrast, if the content of the first part feels to be improved, I believe the subsequent content will also help everyone.

Okay, not much to say, let's start our content now!

Part 1: Mind

"Some things you can't see with your eyes," said the rich father, "Real estate is real estate, and stocks are stocks. You can see these things, but those things you can't see are more important. Trading and financial agreements , Market, management, risk factors, cash flow, corporate structure, tax law, and many other things determine the advantages and disadvantages of investment. "

When people buy a real estate or a stock, they are usually seen according to their eyes, or the agent told them, or the enthusiasm of a colleague to make decisions. They usually use emotions rather than rational.

They don't necessarily lose money, but they can't make money. They are just balanced income and expenditure, make some money, and pay some money. This is because they invest in eyes and emotion, not the brain. Many people invest because they want to get rich quickly, and they have not become investors, but they have become dreamers, criminals, gamblers and scammers. This kind of person is everywhere in the world.

When the author purchased the property, I found some problems, so I went to the rich father to ask. The rich dad modified the agreement and said to the author: "According to the previous agreement, I guess you will lose at least 150 US dollars per month, or even more even more. Many. If you continue to pay $ 150 a month in the expenditure and daily expenses, how many transactions can you pay? "

The author replied: "Almost no one can, I don't have more than $ 150 every month. If I did the initial transaction, I would feel nervous every month. Even if I enjoyed tax reduction and exemption, I may still still be still You have to find another job to pay this investment. "

"But now, how many transactions can you withstand 80 US dollars in cash flow?" Rich father asked.

The author laughed and said, "As much as I can get."

Fu Dad nodded and agreed: "Go to find more such transactions now!"

A few years later, the price of real estate in Hawaii was soaring. The author did not only have one asset appreciation, but the price of seven assets doubled.

At that time, when the author gave the new offer to the real estate agent, the only sentence he said to the author was: "You can't do this."

The author took a long time to convince him to consider how to do this, which also gave the author a lesson: When someone said "you can't do this" to you, he is likely to pointed at you with one hand- - But three fingers pointed at himself in turn.

The rich father said, "You can't do this" does not necessarily mean "you can't", in most cases "they can't."

Every day, 1.4 trillion US dollars run around the earth through the electronic system, and the amount is increasing. Today, there are more currencies that have been created and available than ever before. The problem is that today's currencies are invisible, they are electronic currencies.

If you know how to take care of the currency, the currency will rush to you, and you will pray for you to accept it.

If you don't know how to look at the currency, it will stay away from you.

If you want to be a professional on the right, you need to train your eyes to see only 5%of things and train your mind to see the remaining 95%.

The reason why most people struggle in finance were that they obeyed those people who knew the currency as they did. If you let Qian Yong go to you, you must know how to take care of them. If money is not the first in your mind, then it will not stick to your hands. It does not stick to your hands, then money and rich people will stay away from you.

So what is the first step to train the brain to see the brain?

The answer is simple, that is, mastering finance. If you can't understand these languages ​​or numbers, you may be like speaking foreign languages.

If you imagine each quadrant as a country, you will find that they use different languages. If you don't understand their language, you will not understand their numbers.

For example, if your doctor said, "Your high pressure is 120, and the low pressure is 80." Is this good or bad?

This is like saying: "The price -earnings ratio I hold is 12, and my apartment returns are 12." Is this all the information we need to know about wealth?

The answer is no, but this means a beginning.

The author does not agree with what people say: "First of all, you have to invest money."

The author's point of view is that the ability to make money with money comes from the understanding of financial language and numbers.

When people say to the author that investment is risky, and the author replied: "Investment has no risk, there is no culture to have risks."

Investment is more like flying. If you have studied flying schools and spending several years to get experience, then flight will be full of fun and excitement. But if you have never read a flying school, the author recommends that you give the cockpit to others.

The rich father firmly believes that any financial suggestion is better than no suggestion, but he only made a decision based on his financial quotient: "If you know nothing, then any financial suggestion is better than no suggestion. Good suggestions and bad suggestions, this will be very dangerous. "Bad suggestions are risky, and most of the bad suggestions are passed down from the home, not because of what they said, but because of what they did. Children learn more through examples than language.

When looking for consultants, your consultant can only be as smart as you. If you are not smart, they cannot tell you too much; if you have mastered financial knowledge, a capable consultant can make more complicated financial suggestions; if you do not have financial knowledge, they must follow the law that only the law is only the law. You formulate a security and risk -free financial strategy.

If you are a mature investor, then they only recommend low -risk and low return investment. No consultant will be willing to spend time teach you, because their time is also money. Therefore, if you manage your money with your own financial knowledge you learn, then the capable consultant will tell you that only a few people will notice investment and strategies. However, you must first receive education and do your own part.

Part 2: Assets

Because most people lack financial knowledge and do not understand money games, they usually have to obey the advice of the people they trust.

If you lack financial knowledge, then you need to trust someone, and you hope he has the graceful financial knowledge. Many people invest or manage their money according to the advice of others, not by themselves, and they are risky.

In fact, when the bank manager tells you that the house is an asset, they did not lie to you, but did not tell you all the facts. Your house is an asset, but they did not say whose assets were.

If you read a financial statement, it is easy to find that your house is not your own assets, but the bank's asset.

People with limits on the left do not need to know the difference between assets and liabilities. Most of them are satisfied with the sense of security brought by the work. They have their own beautiful houses that they belong to them. Essence

People with a limited e -limited limit need to know this difference. To have financial knowledge and financial quotient, we need to fully understand the knowledge about money.

When liquidation accounts, you list your house as an asset and list your mortgage loans as liabilities. It is also worth noting that the "value" of your house will change with market fluctuations, and mortgage loans are certain liabilities and are not affected by the market. For those on the right, the "value" of the house cannot be regarded as an asset because it cannot bring cash flow.

At this point, many people will think: "If I pay off the mortgage loan, what will happen? At this time, is the house's asset?"

First of all, the maintenance and insurance premiums of the house are required. Second, even if you are the owner of the house, the government still has to tax you. As long as you stop the property tax, you will find who really owns your property.

In order to train your mind, you must now know the true meaning and digital system of the vocabulary.

First of all, you should know the difference between assets and liabilities. After that, you should also know the definition of "mortgage loan", which is "an agreement that is effective until death." And the definition of "finance" means that finance means a fine.

After the financial crisis in 2008, we often hear the word "financial derivatives". The simple definition of "derivatives" is "things that are sent in things". For example, orange juice is the derivative of oranges.

Now let's take a look at the word "real estate". In English, it is "Real Estate". The word actually produces the word "Real" in Spanish, which means "royal family". The original meaning of real estate refers to the assets of the royal family.

When the royal family realized that money was no longer generated by land but the "derivatives" that were generated in the land, the monarchs established a bank to allow banks to manage new and increased business. Today, the land is still called "real estate", because no matter how much you pay for it, it cannot really belong to you. It still belongs to the "royal family".

Learn these nouns, let's take a look at interest rates. Let us assume that you bought a house worth $ 100,000, $ 20,000 in down payment, and borrowed the remaining $ 80,000 at the bank with a 8%interest rate and a 30 -year repayment period.

Within 5 years (equivalent principal and interest calculation), you will pay $ 35,220, of which 31276 US dollars are interest, and only 3944 US dollars are repayment of debt.

If you hold this loan for 30 years, you will pay a total of $ 211,323, which is far more than the $ 80,000 you first borrowed. The total interest you pay is $ 13,1323.

In addition, the $ 2,1323 does not include property tax and loan insurance premiums.

Interestingly, $ 13,1323 looks much more than 8%of $ 80,000. The interest rate of this 30 -year loan is more like 160%. As the author said, they did not lie — but did not tell all the truth.

If you don't read the numbers, you will never know this; if you are satisfied with your house, you will not actually mind these.

In the banking industry, the average life expectancy of mortgage loans is 7 years, that is, banks expect people to buy new houses every 7 years or re -financing. This means that every 7 years of their expectations can withdraw their initial $ 80,000, plus the interest of $ 43,291. The term "mortgage" (mortgage) originated from the French "mortar", which means "an agreement with a valid to death".

The fact is that most people work hard to continue to increase consumption and buy new houses -using new mortgage loans. For this reason, the government provides tax reductions and encourages taxpayers to buy more expensive houses, which means that the government can receive more property taxes.

When the bank manager told you that your house is an asset, he is lying in a sense. When the government provides tax deductions for your liabilities, it is not because of concern to your financial future, but because of the relationship between your own financial future.

Now, your savings are real assets, which is good news. It can be seen through financial statements that your assets have become liabilities in the bank's balance sheet because they must pay interest for your money and spend money to protect it.

If you can understand the meaning of these descriptions and vocabulary, you can better understand the money games that you can't see.

If you look closely, you will find that borrowing money to buy a house will cause you to obtain tax reduction and exemption, but saving money will not allow you to gain such benefits. Don't you feel strange?

Although there is no accurate answer, the author speculates that a big reason is that savings are liabilities for banks. Why let the government let the government adopt a law to encourage you to put the money that become their liabilities into the bank?

In addition, banks do not need your savings, they do not need so much deposit because they can magnify the money at least 10 times.

In other words, if you deposit $ 1 into the bank, in accordance with the law, banks can loan $ 10 (according to relevant regulations, mortgage loans need to purchase guarantee insurance, and the guarantee agglomeration of the guarantee agency generally does not exceed 10 times, that is, 100 million guarantees of guarantee Fund can guarantee up to 1 billion bank loans).

Moreover, if there is no reserve restrictions on the central bank, it may be $ 20. This means that your $ 1 suddenly becomes $ 10 or more. What a magical!

Based on this, banks can pay 5%interest for your $ 1. As savings, you feel safe because the bank pays some money for your money.

The bank wants you to borrow money because they can earn 9%or more interest on the money you borrow. When you make a 5%interest at $ 1, they can make 9%or more interest from $ 1 for you $ 1.

Another reason they do not provide tax reduction for savings are even more obvious. If you can understand these numbers and see where the current capital flows, you will find that they get your money anyway. You have the money in the asset project and is flowing out of your liability project in the form of your mortgage interest.

Therefore, they do not need the government to provide tax rewards for your savings. In any case, they will get your money -in the form of loan interest.

Part 3: The name of the game

When the author invests in the real estate, when he is in a state of losing money, Fu's father said to him, "I'm glad you have entered this game, but because no one tells you what kind of game this is, you have been deceived. In the team's team. "

"The name of the capitalist game is‘ who owes whom? ’” The rich father said, “Once I understand this kind of game, I can be a better player — instead of letting others manipulate this game.”

We all owe a debt of someone or some people, and there will be problems when the debt is lost. Unfortunately, the poor in the world were played too hard by this kind of game, and they could no longer be trapped in a deeper debt.

"The more you owe the debt, the poorer you will be, the more you owe your debt, the richer you will." The rich father said, "This is the rules of the game."

The same is true for those poor countries. The world gets wealth from the poor, the weak, and the lack of financial knowledge. If you have too much debt, this world will take away everything you -your time, your work, your family, your life, your confidence, and then take away your dignity. They do this.

After you have mastered this kind of game, you can do it with the laws you know.

The currency we circulate cannot even be a proof of equity, it is a debt tool. In the past, every $ 1 was supported by gold or silver, but now currency is just a debit, and the taxpayer of the issuer is guaranteed to pay. As long as other countries in the world believe that taxpayers in the United States can pay this kind of debit dendium called US dollar through work, the world will trust the US dollar.

If the key factor of the currency, that is, the "confidence" suddenly disappears, then the economy will collapse, just like a house built by a building block.

This is why most currencies are regarded as "legal" currencies today, but this currency cannot be converted into a tangible thing with fixed value -such as gold and silver.

Currency can only be used when people believe that the government is doing backstage. Another definition of "statutory" is "the autocracy or command formulated by the individual or group formulated by the ultimate power."

Someone uses debts to hinder you. This is like you and 10 friends to eat. You went to the toilet, but when you came back, only the bill was placed there, and 10 friends were gone. If you want to play this kind of game, it is best to learn how to play first, understand its rules, speak the same language, and know who is playing with. Otherwise, it is not the game you play, but the game to play you.

For most people, money is not a game, but a game that people hate but have to participate. Unfortunately, the more civilized human beings, the more money becomes an indispensable part of our lives.

You can see this world as a money game. If you want to participate in the money game, which team would you choose to join? Employees, freelance occupations, business owners or investors? Is it on the left or on the right?

When the author traded the first real estate, the rich father said, "You can't leave when you are playing this game, and you can't believe that a real estate agent tells you that it is a pen for its 30 -year loss of $ 150 a month. Good buying and selling -because the government will provide tax reduction and exemption for your losses, and if he expects that real estate prices will rise. "

"You can't participate in the game with this way of thinking. Although these ideas may be correct, this is not the way to play games on the right elephant limit. Some people are advising you to borrow debt, let you take all the risks, and pay for debt. People with a quadrant on the left may be considered a good idea -but people on the right quadrant will think so. "

"Making money is basic common sense, not profound scientific knowledge. But unfortunately, once it involves money, common sense is not easy. The bank manager tells you that you should borrow debts and tell you that the government will implement tax reductions on it, and then a real estate agent Tell you that you should sign these agreements, because it thinks that it can find a good cuby that can make you make money, and according to what the house prices he see will rise. If you think these words make sense, it means that you have different understanding of money. "

"Your profit is produced when you buy it instead of selling it."

The rich father is convinced that whether it is borrowing or bearing risks, it must be meaningful when he buys -it must be meaningful when the economic situation changes, and it is more meaningful when the economic situation is good.

When he chose to buy, he never rely on tax skills or predicting future crystal balls. A transaction must have a good economic significance in the economic situation or different.

"If you are ready for debt and bear risks, you must be sure that you can pay for it. If you borrow your debts, you must ensure that the amount is small; if you borrow a large debt, you must ensure that someone pays for you." The rich father said.

If you want to succeed on the right of the right side, when you involve money, you must know the difference between facts and suggestions. You can't blindly accept financial advice as people on the left like a limited -limited person. You must understand the meaning behind these numbers, you must understand the facts, and numbers can tell you the facts.

Your financial survival depends on the facts, not a long suggestion given by a friend or financial consultant.

Most people are struggling with financial efforts because they are relying on accepting suggestions instead of making decisions based on the facts. These suggestions include:

Your house is an asset and real estate price that always rises. Blue chip stocks make your best investment. If you want to make money, you have to spend money first. The stock is always better than the real estate. You should make your asset portfolio diversified ... Mowing

Now, let's look at an example -gold is asset?

According to the definition of rich dads, only when your purchase price is lower than the selling price, gold is a asset.

In other words, if you spend $ 100 when you buy it and get $ 200 when you sell it, then it is asset. However, if you spend $ 200 when you buy it and only get $ 100 when you sell it, the gold in this transaction is a liability. It is these real financial numbers in the transaction that tells you the facts.

In fact, the only asset or liability is you — because in the end you turn gold into assets, and only you can turn gold into liabilities.

Many people make life decisions based on the suggestions of passed down from generation to generation, and then they don't understand why they always struggle in financial difficulties. These suggestions are:

You should marry him, he will be a good husband.

Find a stable job and do it for a lifetime.

Doctors can make a lot of money.

Native

The key is that most people's lives are determined by others rather than facts. To change a person's life, first change his concept -and then start observing the facts.

If you can understand the financial statements, you can see the facts, not just the financial success of a company; if you can read the financial statements, you can immediately tell what a person should do -s instead of obeying the advice of others or only With your own subjective speculation.

There is no good or bad between suggestions and facts. If you want to succeed in life, especially in financial aspects, you need to know the difference between the two. If you can't prove that something is a fact, then it is a suggestion.

If you are playing with the game, but after 20 minutes you don't know who the scapegoat is, then you are the scapegoat.

Many people bear debts such as mortgage loans, car loans, consumer debts, credit cards and school aid loans after leaving the school.

If you know this kind of game now, you may realize that these debts must appear in someone's asset table.

For most people, no one owes their debts, and they have no assets. They always owe other people's debt, so they seek work safety and work hard for money. If they do not work, they will go bankrupt instantly.

They always believe that others tell them, and they have to believe, because they do not understand the financial figures, do not understand the difference between facts and suggestions.

Understanding money games and masterpiece is an important part of the process of financial freedom, and more importantly, you need to be the kind of person who needs to be the right side of cash flow.

All right! The content of this issue is over here. In this issue, we see some truths (about mortgage loans). When I verify one by one, I found that this is indeed the truth and the truth of the public, but these truths are not continuous They are scattered. If you do n’t think about how to search the truth, then you can only see some of the truth.

If you see here, take these knowledge as a beginning, look for the truth of money, and see the real appearance of this world!

This is Nangong Reading Club. I am Nangong Minling. Follow me and start reading a reading journey with me. It improves 10%every day!

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