1. The Pareto Principle: Grasp the Critical Minority.
The Pareto principle, also known as the "80 20 rule", reveals a common phenomenon in life: a few people own most of their wealth, and the majority own only a small part of it. This principle reminds us that the key to becoming a wealthy person is to grasp a few key resources, opportunities, or connections, rather than spending too much time and energy on trivial things. Learn to put more time and energy into the important things so that you can achieve better results.
2. Compound interest effect: let wealth continue to grow.
Compound interest is a method of calculating interest that is characterized by the fact that the interest accrued on the principal is re-generated along with the principal in the next interest-bearing cycle. In short, it is "profitable". In the field of wealth management and investment, the compounding effect is a powerful wealth engine, allowing wealth to continue to grow. By planning your asset allocation and investment strategy wisely, you can accumulate wealth over time and achieve financial freedom.
3. Sunk costs: let go of the price that has been paid.
In economics, sunk cost refers to the cost that has been paid and cannot be paid. In our lives, many people choose to hold on in the face of sunk costs because they are not willing to give up the price they have already paid. However, this mindset often leads them deeper into trouble. The rich think knows how to stop losses at the right time, bravely let go of past efforts, and focus on future gains. Only by lowering the sinking cost can we travel lightly and meet a better future.
Fourth, the principle of scarcity: have scarce capacity and resources.
The principle of scarcity refers to the fact that a person or thing appears precious and valuable because it is unique or rare. In today's competitive society, having scarce abilities and resources can often make you stand out from the crowd. Whether it is professional skills, unique knowledge, or interpersonal relationships, etc., are the key elements that make up an individual's competitiveness. By constantly learning and improving your abilities, making yourself an expert or leader in a certain field can make you go further on the road to wealth.
5. Flea Effect: Set higher goals.
The flea effect originated from biological experiments and was originally used to describe the phenomenon that fleas can only jump to a fixed height. However, in human life, the same effect applies. If we set a fixed goal for ourselves, over time, we will get used to this height and no longer strive to break through ourselves. Wealthy people, on the other hand, know how to set higher goals, constantly challenge themselves, and constantly push their comfort zone. By setting higher goals and working towards them, we can continuously improve our abilities and achievements, which will lead to more wealth and success.
6. Delayed gratification: Learn to wait and endure.
Delayed gratification refers to the temporary abandonment of immediate gratification in pursuit of a greater goal or a better outcome. In the pursuit of wealth, many people often give up long-term interests because they can't bear short-term pain. The wealthy mindset, on the other hand, understands the value of waiting and patience, and they are willing to give up immediate pleasures for long-term gains. By cultivating your patience and willpower, you can learn to look for opportunities while waiting, so that you can seize opportunities at critical moments and achieve wealth accumulation and growth.
In short, if you want to become rich, you have to learn and master the wisdom and methods of becoming rich, of course, you also have to learn and master all kinds of dry goods about making money.
First of all, this set of seven volumes has become a wealth classic for the rich, namely "Rich People Think Different from You", "Wealth Freedom", "Make Money with Money", "Thinking to Get Rich", "Buffett's Way", "You Don't Manage Your Finance, Money Doesn't Pay Attention to You" and "80% of Your Time Is Used Wrong", this set of books, each volume has its own characteristics, seven volumes are read together in a set, inspired by each other, to help you develop rich thinking, become a real rich, the book shares a lot of dry goods about wealth, Interested friends, don't miss it.
In addition to these seven wealth classics, I also especially recommend a copy of "The Logic of Making Money". This book will take you through a re-examination of what it really means to make money, and let you understand how to achieve steady growth and long-term accumulation of wealth through sound planning and financial management skills. Whether you're just starting out or you're already accumulating some amount of wealth, this book will provide you with valuable inspiration and guidance.
These eight books will be your right-hand man on the road to wealth, and they will accompany you to grow together and witness your success and glory. I believe that under their guidance, you will be able to realize your dream of wealth and become a truly wealthy person.