It is a very simple idea to use the power of compound interest

It is a very simple idea to use the power of compound interest  Smart people are easily attracted by complex things, and underestimate the great influence and importance of simple ideas. But Monish Pabrai is a full pragmatist, and he will not fall into this trap. "It is a very simple idea to use the power of compound interest, a very simple idea to imitate, and a very simple idea to be honest." He said. However, when you apply some powerful ideas with great enthusiasm, the cumulative effect is "incomparable".

Reading notes [The Road To Financial Freedom:Earn Your First Million in Seven Years]

 Reading notes [The Road To Financial Freedom: Earn Your First Million in Seven Years] 

1. thinking before listening

Why are many people in the world unable to achieve financial freedom?

If you want to succeed, what should you do first? How to double the income within three years?

They all say they want to save money, so what about the mortgage? How can inflation break?

2. essence notes

Financial Freedom: Making your first million in seven years is a world-renowned classic financial work. The author Bodo Sheffer is a famous German financial expert, known as "European Buffett". His works "road to financial freedom", "dog money" and "winner's rule" are well known in Europe and America, with sales of more than ten million copies.

The road to financial freedom is divided into two parts. The first part is the basic principles and the second part is the practical guide.

In the first part, the book answers the question: Why are many people unable to achieve financial freedom? Schaeffer uses the "three cards" technique to let you have a dialogue with yourself, find out your conflict with financial freedom, help you build an internal "consistency" and expand your "scope of responsibility".

The second part of this book provides a guide to your first million in life. There are three steps to achieve this small goal:

Step 1: pay off the debt as soon as possible. Scheffer deeply analyzed consumer debt and put forward a human-oriented response: the five principles.

Step 2: increase income. The road to financial freedom assumes that there are two types of readers: office workers and self-employed. The so-called self-employed include freelancers, businessmen, company operators, entrepreneurs, etc. For both types of people, Bodo Sheffer designed a set of schemes. For example, the self-employed should pay themselves a suitable salary, build up personal wealth outside the company's income, and use OPM at the same time.

Step 3: let money work for you. This part involves savings, real estate, and stock investment. Schaefer elaborated on ways to fight inflation and suggested starting with stock investment and planning your "money machine". The key point of stock investment is "two principles", and the ingenious fund investment strategy is relatively more suitable for financial management Xiaobai.

Financial freedom can only be called if it does not depend entirely on work income. Schaefer believes that financial freedom is a right that everyone should have, and it is not difficult to achieve this goal. Just follow the methods and steps in the book and take action from today!


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