Building an individual financial analysis knowledge system from zero: ordinary people can also become rich people? Personal financial analysis, financial knowledge systems, ability to manage money, financial freedom, from scratch, do you often feel that your “monthly light” is inexplicable and that wages disappear as soon as they arrive? You can't do anything about it? In fact, the problem is that you do not have a complete personal financial analysis knowledge system. This article will take you from scratch to break down the key steps in shaping financial thinking so that you can move away from “wilding money” to “disguising money”. Whether you're a freshman in the world of work or an ordinary person who wants to improve your financial capabilities, this is the first step to your financial freedom。
Hey, amigo, have you ever had an experience of getting paid and losing it
You think you didn't buy anything big, but the money's evaporated. At this point you might think, "shall i learn to manage money?"
Easy, let's talk today — how to build your own personal financial analysis knowledge system from scratch. This is not an advanced financial course, but a “financial survival skills” that is available to everyone。
Step 1: clarify “where money comes from, where it goes”
Many have failed to manage their finances, not because they do not understand the investment, but because they are not even aware of their monthly income and expenditure。
Imagine, if you don't even know how many meals you eat every day, how to control the heat? So is money management。
Therefore, the first step in building an individual financial analysis knowledge system is to record income and expenditure. You can use excel forms, account for app, and even the most primitive notebooks. The key is to keep track of a month, and you find a lot of "hidden expenses."。
For example, you might think you didn't order any take-out, but it cost you over 1,000 a month. It's "invisible consumption," it's like a financial "chronic disease" that doesn't tickle, but slowly emptys your wallet。
Step 2: create your financial dashboard
What is "financial dashboard"? It's your monthly financial summary, a dashboard similar to that of a car, that gives you a glimpse of “oil quantity”, “speed”, “engine state”。
This dashboard can be simple: income, expenditure, savings, savings rate. But that's the four numbers that tell you a lot of information。
For example, you find your savings rate at only 5%, which means you've got a long way to go before you're financially free. And if you can raise it to 20 percent, you're ahead of most people on the financial track。
Remember one sentence: ** "seen money, that matters."**
Step 3: from “recording” to “financial planning”
Many people think that bookkeeping is just the beginning。
True financial freedom requires you to manage your own funds in a targeted and systematic manner. For example, if you want to buy a house in three years, buy a car in five years, and be financially free in ten years, you have to start planning savings and investments every month。
At this point, you need to learn basic financial tools, such as compounding, asset allocation, risk assessment, etc. That sounds high, but with basic concepts, it can help you make more informed decisions。
For example, if you can save $3,000 a month at an annualized rate of 5 per cent, you'll have over 460,000 in 10 years. That's the power of compoundity
Step 4: continuous learning, building your financial brain
Financial knowledge is not instantaneous; it requires constant learning and practice。
You can start with "doggie money" and "poor daddy rich" books, and go into classics like "big investors", "wall street."。
Of course, attention can also be given to financial entrepreneurs, podcasts and videos, but attention must be paid to screening the sources of information and selecting those elements that are supported by real cases, logic and data。
Remember:** “financial freedom is not by luck, but by perception.”**
