Chapter 13 Business Road 12 Flowing money can create value

The essence of business: Wenshang understands that the accumulation of wealth requires savings, but if you keep saving and don’t want to invest, then money will become dead money.You won't worry about living without money, but you'll never be super rich either.Money is like water, only when it flows can more value be created. A businessman in Wenzhou once said: "I think saving is a guarantee of stability in life. The more money you save, the higher the degree of psychological security. If you accumulate like this, you will never be satisfied. , Don’t you put all the useful money on the shelf, so that you can’t use your ability to make a lot of money? Besides, how can you live frugally for a lifetime, save your money in the bank for a lifetime, and become the world’s richest person just relying on rolling interest? Famous rich man?"

"However, I am not completely opposed to saving. What I am opposed to is turning savings into a hobby, and forgetting to use the money when it reaches a certain amount, so that it can earn much more than bank interest. Money. I also objected to the increasing deposits in the bank. I felt a corresponding sense of security in my heart. I felt that I was guaranteed, and I relied on interest to subsidize my living expenses. This made me dependent and lost the spirit of adventure and struggle. .” Many people think that depositing money in the bank can earn interest and enjoy compound interest. In this way, it is considered that the money has been properly arranged and the responsibility of financial management has been fulfilled.In fact, under the erosion of inflation, the real rate of return on interest is close to zero, which means that there is no financial management. Therefore, keeping money in the bank is equivalent to no financial management.

How much wealth each person will have in the end is unpredictable. The only certainty is that depositing money in the bank can only ensure a stable life, but getting rich is harder than reaching the sky.People who deposit all their money in the bank not only cannot become rich when they are old, but often cannot even achieve the level of financial independence. Such cases are not uncommon in real life.People who choose bank deposits as their financial management method are nothing more than giving themselves a good guarantee, but in fact, keeping money in the bank for a long time is the most dangerous financial management method.

Usually, the poor people attribute it to the rich being able to get rich more positively because the rich work harder than themselves or because they are diligent and frugal. The more negative thinking is to attribute it to good luck or engaging in improper or illegal industries. .But these people never imagined that it was their financial habits that really caused their wealth to be left behind.Because the wealth management methods of the poor and the rich are different, the property of the poor is mostly deposited in the bank, while the property of the rich is mostly stored in the form of real estate and stocks.

Carnegie once had such a true story.Once Carnegie's neighbor, an old woman, called Carnegie to her home and begged him to do something for herself. Carnegie said: "Old man, if you need my help, just say it!" The old woman said: "Mr. Carnegie, I know that you are an honest and good man, and I trust you. Please come in and come with me." She took out her key and opened the bedroom door.This bedroom is simply a secret room, with no windows, only a narrow window opening, and the door is thick and tightly closed. Carnegie followed the old man into this secret room, not knowing what the mysterious old woman was going to do.

The old woman locked the bedroom door, bent down and dragged out a suitcase from under the bed.He unlocked the suitcase and lifted the lid. Carnegie took a closer look and saw a box full of brand new banknotes! "Mr. Carnegie," said the old woman, "this is the money my husband left me. It is a total of 100,000 US dollars, all of which are 50 yuan bills. The total should be 2,000. However, I counted them yesterday. , there are only 1999 banknotes. Is it because I am old and I have not counted it correctly, or is there really one missing? If it is really missing one, it would be strange, I have never taken out a single banknote Mr. Carnegie, I invite you to count for me. No one knows that I have hidden 100,000 dollars in private. I trust you, so please come and do me this favor..."

Carnegie was amazed. After being busy for a long time, I finally finished counting the banknotes, which happened to be 2000, worth 100,000 US dollars.The old woman jumped up like a little girl for joy. Carnegie wiped the sweat from his forehead and said, "Old man, why don't you deposit such a large amount of money in the bank? If you save it, the annual interest will not be less than 10,000 US dollars!" The old woman was silent. "Put it at home like this, but it will make you worry," Carnegie continued to do ideological work with her. "If you deposit it in the bank, you don't have to worry about losing one or more cards. It is safe and has interest."

The old woman was moved, "I entrust you to save it for me!" When Carnegie brought the passbook back to the old woman, the old woman brought the passbook to her eyes and looked at it carefully, and saw that there was a line of words on it. "Is this a small note worth 100,000 dollars? 100,000 dollars, a whole box of brand new banknotes is just such a small note?" the old woman muttered. Within two days, the old lady invited Carnegie over again.She took the deposit slip and said, "Mr. Carnegie, I don't feel at ease with this flimsy note. It can't be a scam, can it?"

Carnegie said: "Old man, it's all right..." The old woman then said: "Oh, Mr. Carnegie, I really can't let go of this heart. I can't see my money, and I feel as if I don't have it. To tell you the truth, I used to put my money every day. I counted the $100,000 in cash. I haven’t counted my money for two days, and my hands are so itchy! Mr. Carnegie, please excuse me again, you can go to the bank and get the cash out for me right away!” Carnegie had no choice but to do so. The old woman's approach is actually ridiculous, if the money has been kept in her back room.That money will never increase, living money becomes dead money, just like living water becomes stagnant water, it will not last long.

A successful entrepreneur in Wenzhou once made a vivid analogy of funds: "Funds are like blood and the human body to enterprises. Poor blood circulation leads to imbalances in human body mechanisms, and poor operation of funds leads to poor management. How to maintain sufficient funds and use them flexibly , is something that operators must pay attention to.” These words not only show the entrepreneur’s high financial quotient, but also explain the profound truth of capital movement to accelerate wealth creation. Some private company owners, when they first entered the shopping malls and made a relatively smooth sum of money, they want to retreat, or invest the proceeds in family construction quickly; or deposit the money in the bank to earn interest; Business, to avoid the risks brought by competition, and do not want to return the earned profits to invest in business to make money, let alone invest in real estate and stock business with great risks.As a result, the funds that could have been alive were blocked, and they could not play a greater role.

Jack was not rich in his early years, and his life was difficult, but even though the economy was not rich, his mother always did everything in her power to give him the most special treats when possible.Whenever she has extra money, she's sure to buy something for the kids.Maybe buy Jack a new console, or take them to an open-air movie.Since children usually consume only what is needed, Jack figured it was his mother's way of giving herself some joy.According to Jack, they always spend extra money as soon as they have it, so they never have extra money to save. When Jack started earning a decent amount of money, he noticed something strange.Even though he has enough money to cover his expenses, it seems like there is still nothing left at the end of the month. Years ago, Jack wanted to invest in real estate for the first time.He knew he needed at least $30,000 in cash, but Jack had never saved that much in his life.So he set a timetable and wanted to save enough money within 6 months.It will cost $5,000 a month.That number seemed far off, but Jack started with faith. Do you have a special basket or drawer for bills in your house?A place you visit maybe once a month and are ready to pay?Jack has.And what he did was put on file the new bill that you called the "additional installment".The $5,000 monthly bill might seem like a lot to come by, in fact, Jack tried to ignore it for the first month or two.But he went ahead with the plan and tried to see if there was any other way to make sure that the extra bill would be paid with the other bills. A funny thing started to happen.As Jack focused on making money and keeping the $5,000 he made, he increasingly noticed that he was throwing his money around recklessly.He also began to notice opportunities that he hadn't noticed before.It also occurred to him that he used to devote only a certain amount of energy to his work, and now that he must have extra income, he puts a little more energy and creativity into what he is doing.He began to take greater risks, and he asked customers to pay more for his services.He develops new markets for his products, and he finds ways to use time, money, and people so that more can be done in less time.By billing himself what he called a "down payment," he amplified, amplified, the abilities he had always had. Human life lies in movement, and the life of wealth also lies in movement.As money can be static, but funds must be in motion, this is the general law of market economy.Funds are afraid of loneliness on the stage of market economy, and they are unwilling to be lonely. They need a bright rhythm and a rich and colorful life.Keeping the earned money in your hands and putting it aside is not as valuable and meaningful as investing it rationally. The money rule of Wenzhou people is: money is earned in the flow, not saved by deductions.What they advocate is "money makes money", not "people save money".A Wenzhou businessman said: "Many people will feel that they have lost security in their lives if they circulate money. Therefore, men work hard every day for food, clothing, and living outside, while women calculate how to save living expenses as much as possible and deposit them in the bank every day." What's the point of a person's life passing like this? Moreover, when the money in the passbook increases, he feels quite secure psychologically, which develops dependence and loses the spirit of adventure and struggle In this way, wouldn’t it mean putting all the useful money on the shelf and making your chance to make money slip away? How can anyone in the world become famous in the world by living frugally for a lifetime, saving money for a lifetime in the bank, and relying on interest? What about the rich man?" In fact, no matter how much money the operator earns at the beginning, he should understand the truths of the common saying that "it is better to run a business and open a store if a family has a lot of money" and "a stagnant water is afraid to be scooped with a spoon".People in life have this feeling that no amount of money is enough to spend.Why?Because "sitting and eating mountain empty".Just imagine, if a snowball is placed on the snow, it will never grow bigger; on the contrary, if it is rolled up, it will grow bigger and bigger.The same is true for money. Only by circulating can more profits be made. From an economic point of view, the life of funds lies in movement.Funds only generate value when they are exchanged for commodities, and only when they are turned over.Without turnover, it is not only impossible to add value, but also loses the value of existence.If you use funds as capital and use them rationally, you will make more money. Therefore, I advise those who save too much money: Although your family has a lot of money, you should continue to work hard instead of "sit and eat".Starting from this ancient adage, you can get the following enlightenment: Since the surplus value is generated from the circulation of money-commodity-money, why not use the existing money to invest in business and keep it dead? Of course, in business, risks always exist.The ancients said: "Fortune comes with misfortune, and misfortune depends on blessing." Profit and risk coexist. In the rolling of money and the movement of capital, use your intelligence and open your financial intelligence, and you may become a new rich man.