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Lack of financial knowledge kills people


Time of issue:2020-04-01 00:00:00

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Lack of financial knowledge kills people

(Summary description)Lack of financial knowledge kills people

Lack of financial knowledge kills people

(Summary description)Lack of financial knowledge kills people

        I once heard such a story.
        It is said that there is a Chinese who works hard every day, saves the money he earns, and finally gets old when he can finally afford a house. The other American first earned a down payment for the house, then moved into a new house and repaid each month. When he was old, the bank loan was also paid off.
        From this story, at first glance, this American consumption philosophy is more reasonable. Because although the result seems to be the same in the end, the time the house enjoys is different. It is estimated that many young people are still affected by this story. This story has a hypothesis, assuming that the income of two people is fixed. If you try to analyze the cash flow statement and balance sheet of the two, you will find that the American consumer philosophy is unreasonable.
         This story ignores the great value of cash flow. If you consider the value of cash flow, the result of this story should be that the Chinese, through diligence and thrift, continue to invest in improving their core abilities, and usually consider a variety of financial management methods. Apartment, but villa. At the same time, he has obtained complete financial freedom. The American did not dare to change jobs because he repaid the loan every month, nor did he have extra money to invest in learning. In fact, he worked for the bank for a lifetime.
        It is not difficult to see how important financial knowledge is to the design of life. 

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