📖 What is financial freedom?
Financial freedom: not needing to work for basic living expenses, having the freedom to choose a lifestyle.
The key is not how much money you earn, but whether your assets can continuously generate passive income to cover daily expenses.
📖 Change of perspective
1. Correctly understand wealth
Wealth is not money, but resources that can continuously create value (such as skills, assets, knowledge).
Money is just one form of wealth.
2. Time is the most valuable resource
The core of wealth lies in how to effectively utilize time, focusing on long-term value rather than short-term gains.
3. The power of compound interest
Whether it's money, knowledge, or connections, the compound effect can lead to exponential growth in accumulation.
📖 How to achieve financial freedom?
1. Enhance personal capabilities
Focus on enhancing irreplaceable skills (scarcity + value creation ability).
Continuous learning, creating greater value through knowledge and experience accumulation.
2. Invest in yourself
Reading is the lowest-cost investment: expanding perspectives and accumulating knowledge.
Invest in health: the body is a guarantee of time and energy.
3. Build assets
Asset types: real estate, equity, intellectual property, portfolios, etc.
Build your own 'printing machine': let assets work for you automatically.
4. Change income structure
Transition from 'active income' to 'passive income':
From relying solely on time for money to having a continuous source of income.
📖 Mindset development
1. Delayed gratification
Short-term sacrifices are a necessary condition for long-term success.
Avoid excessive consumption and spend money on 'assets' instead of 'liabilities.'
2. Embrace change
The future is full of uncertainty, and one must continually adapt to new environments.
Learn to seize opportunities and adjust strategies in a timely manner.
3. Antifragile thinking
Don’t pursue stability, but rather make yourself stronger in change.
Diversify investments and skills layout to spread risks.
📖 Specific action plan
1. Set goals
Clarify your financial freedom number (annual expenses that passive income needs to cover).
2. Make a plan
Executable plans for short-term, medium-term, and long-term.
3. Continuous execution
Persist in reviewing, focusing on long-term returns, and not rushing for success.
Quotations
"The prerequisite for financial freedom is freedom, not wealth."
"The meaning of life lies in choices, and the basis of choice is freedom."
"The difference between ordinary people and successful people lies in whether they truly understand the power of compound interest."
The essence of achieving financial freedom lies in the transformation of personal ability and mindset. This is a path that requires long-term persistence and continuous optimization.
