When I first started studying investment and financial management courses, I especially liked a book called "The Millionaire Next Door", which can be said to really take me to understand the rich from the inside out

When I first started studying investment and financial management courses, I especially liked a book called "The Millionaire Next Door", which can be said to really take me to understand the true face of the rich and the poor from the inside out.

I used to subconsciously think that those who drove luxury cars and lived in mansions must be rich families. And those who save money and plan from a certain small thing no matter what they do, they are most likely poor.

But the book "The Millionaire Next Door" tells us that true wealth is hard to tell with the naked eye. Those who drive luxury cars and live in mansions are not all rich people, they can only be called, living a short and rich life.

These people may have high incomes, but their expenses are also very large, and the end result is that they have very few assets that can actually generate income.

That is, they are not rich, and some even live in debt.

What about the real face of the rich man described in the book "The Millionaire Next Door"?

One of the biggest features is that they don't pretend to be rich, they always know what they need, and they can't show off their identity by buying luxury goods and luxury cars and mansions.

Even if one day they buy a mansion, it is because these costs have investment value for them and are investments that can increase the value of their assets.

Instead of focusing on spending their money where it has no value, they focus on finding investment opportunities and the right career direction.

What can be seen from this? What are the characteristics of rich people that are worth learning from ordinary people?

First, the rich all make annual household budgets

Every wealthy family has one thing in common, they know where their money is spent, and they have a family budget every year. Including living expenses, education expenses, misuse consumption and a series of consumption, they are clear and clear.

If an expense is found to exceed 30% of the budget, it is immediately adjusted.

Living at home without a reasonable budget is like a company with no goals, no direction, and no future.

Second, investment and wealth management

The aforementioned focus on living expenses budget is to pave the way for investment and financial management.

The rich spend part of their year planning their family's money, and it's not the style of the rich to always keep money in the bank. Because they know that the money that exists in the bank will only become less and less valuable. Instead of that, let the asset live up to its value.

Therefore, the rich will pay special attention to the financial management projects of money to make money. 80% of the wealthy have investment funds, invest in bonds, do asset allocation, buy family trust products, etc.

We all know that any investment has a certain risk, the rich people take money to invest, are they not afraid of risk?

For the rich, if low risk can bring a certain harvest, it is worth it. And in the eyes of the rich, there are risks everywhere in life, as long as you invest in the project, will not make you sleep at night, will not make you unhappy in life, will not be uncomfortable, then do not worry.

On the contrary, these risks may also push you farther and farther.

If you also want to become rich from scratch, then throttling, open source, and investment complement each other, which is an indispensable part.