The World Has Changed: Why Do We Understand Financial Knowledge But Not Make Money?

There is a phrase that ridicule people who love chicken soup articles: they know a lot about human life, but still have a bad life.

People who are fully knowledge-based in financial and financial theory are most afraid of asking others how to make money quickly.

Making money.

If we grasp the shortcut to make money, it is not too early to pursue financial freedom to pursue our ideal life. Why are we still studying finance and economics?

Yes, there is a certain distance between converting the theoretical knowledge of financial and finance into real income of wealth. Even if we know how to behave, we have to practice in person and establish our own three systems.

Making money and increasing wealth is a systematic project. It is the result of the resultant force of heaven, earth, people and many factors. Mastering some financial and financial knowledge does not necessarily make money, but it can increase the probability of success.

Theoretical knowledge is somewhat lofty, which sounds tall and tall, but it is difficult for ordinary people to understand and disconnect from the ground. They are all empty truths. They are far less easy to understand than specific names. For example, "the two allocation of income through taxes and fees, alleviating the polarization between the rich and the poor" is not as good as "collecting taxes from the rich and sending the money to the poor".

This involves the problem of individual, application and operation. The so-called body is the core of theory, is the basic knowledge, is the principle of everlasting change, and the concrete application of the theory is based on the theoretical knowledge of the body, which is to put the theory to the ground, while the operation is the concrete operation.

The law is the body. It can deduce that energy can be converted to each other, but it will not be lost, so that potential energy can be converted into kinetic energy, kinetic energy can be converted into electric energy, electricity can be converted to other kinds of energy (kinetic energy / heat energy / wind energy, etc.), which is the principle of hydroelectric power, and the production of motor, the purchase of raw materials, and the recruitment, promotion and sale of workers belong to the operation.

In these three links, we can only make money with "use" and "technology". Although they all come from "body", we can find that the "body" people do not earn 10 Fen of the profits. Instead, they are the power plants / electric plants / raw material suppliers / production workers / salesmen and so on.

So you can understand that the knowledgeable old professor sat in his study, pondering over his whole life for a lifetime, and worked hard and exhausted, but he was poor all his life, because they had been studying "body" and had never been involved in "use" and "skill".

Similarly, financial and financial knowledge is similar to "body". If we want to turn it into wealth, we must have more access to "use" and "technology", that is, more practice -- stock speculation, housing purchase, industrial investment, equity investment, fund investment, private lending.

We can not put the theory on the shelf, study for the sake of research, blindly talk about theoretical knowledge, but use solid theoretical foundation to guide practice, summarize the sublimation theory in practice, and form an interactive feedback loop. This is the ideal model of "making money with financial and financial knowledge."

But the reality is far from that. It is estimated that you have generally guessed that theoretical learning is easier, but practice is changeable, and there is a threshold.

There are many people with theoretical knowledge, but in the practical stage, they have stumbled. They must have a capital stock in stock market. They must have a down payment for buying a house and have good monthly credit. They must have the ability to raise funds / recruit / manage / sell their businesses.

Therefore, only the theoretical knowledge of Finance and economics can not guarantee that we will make money.

In addition to learning the basic theoretical knowledge, it is necessary to perfect the "use" and "operation" in practice, optimize their investment conditions, and consolidate their investment base - work hard to accumulate their first investment capital, maintain good credit records, facilitate future bank loans, observe carefully the potential investment opportunities, accumulate personal connections, cope with emergencies, prepare for financing, and provide cash flow if necessary.

All these precautions require a long time to complete. The growth of wealth is the combination of all the resources of a person. The height of their growth depends on the length of the shortest wooden plank.

Secure

The way is to look for potential opportunities in the industries and fields that you are familiar with.

As for entering the unfamiliar field, we should have the prudent psychological preparation for the loss of principal and loss, so we should let the amount of investment be within the scope of our own risk. Even if we fail, we should accumulate experience and study, and strive to keep the chance of making a comeback.

Everyone's condition is different (knowledge / experience / horizon / capital / judgement). Wealth growth is also very different. The way of getting rich in media is not necessarily suitable for oneself.

But for those who have not accumulated much (funds / contacts / experiences, etc.), it is still suggested that they should be allowed to advance appropriately, because these people themselves have nothing to do, and more need for counterattack.

The basic work has been done well, but we have done all the work. Next is listening to destiny.

You have to understand the truth: the emergence of asset bubbles and the advent of wealth opportunities are highly contingency, randomness, and uncertainty, so do not expect others to give you a clear road to wealth.

When there is wind, where the wind comes from, and how long the wind can blow, almost no one can predict. With the rapid feedback of information pmission, the cycle of feedback is becoming shorter and shorter.

What we can do is to judge according to our own judgement. Whether the judgment is right or not will affect the result. The gap between wealth is derived from this. The importance of financial and financial knowledge is also reflected.

Therefore, we also deeply understand the quintessence of asset allocation: the more people are younger, the larger the proportion of equity investment (stock) and bubble potential investment (real estate / Entrepreneurship) is, the higher the share of debt investment (deposits / treasury bonds / corporate bonds) that the older the old is, the higher the fixed income is, the more young people are coming, the more time they can wait for the wind, and the number of times they can blow more, but there are not many opportunities for the elderly.

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