Chapter 384: The Law of Movement of Money

(11) The law of movement of money

Don't look like a big paper-like title, what I'm trying to say is actually quite simple.

In my opinion, there are two directions in which money moves, one is inflow and the other is outflow. Then, the law of the movement of money is: the inflow is greater than the outflow, more and more (rich), and the inflow is less than the outflow, less and less (poor).

【Belle Franc Financial Guide】

The third lecture is the law of the movement of money

It seems simple, but in fact, many people do not follow the rules of money movement in their daily lives.

The so-called "moonlight clan", "negative man", "house slave", and so on all belong to this category; the behavior of borrowing money and the investment behavior of taking money out of one's own pocket all violate this basic law of money movement.

Some people say that they can't trap a wolf if they are reluctant to let a child trap them! Some people want to use a small amount to make a big deal, or borrow a chicken to lay eggs.

That's why there are scams staged again and again with great fanfare, first dozens or hundreds of them are handed over, and then in order not to let those small money go down the drain, another thousand or two thousand are invested, and then in order not to scrap the previous hard work and money, tens of thousands of dollars will go out!

But if anyone keeps in mind what Bai Lizhu said about "the law of the movement of money", and does not do anything about taking money out of your own pocket first, no deception will succeed.

Every labor of human beings is compensated accordingly, whether it is time-based or piece-rated, and whether it is fair and cost-effective. Whoever gives in his labor will be paid something, and whoever enjoys the fruits of his labor will be paid some money as a reward.

As long as you choose to do the work and put the money in your pocket, there will be no big problem. If you take out the money in your pocket before you can do anything, then it's a big problem!

I insisted on this principle to the point that I didn't recognize my relatives.

I remember one year, my brother asked me to inspect the big peaches in Pinggu, and asked about the diameter of the peaches, saying that a friend could sell this kind of big peaches for 50 yuan after packaging them (it is still a huge profit). Let me flown over to his friend.

I said yes, send me money first! I don't need labor fees, but I can't ask me to advance money first. I don't do anything to get the money out of my pocket first.

Eventually, his friend was never heard from again.

This kind of thing is happening all over us.

Some people really don't know how they spend their money.

Of course, donations to disaster relief are an exception. However, when I donate, I must have even one piece of paper to make a donation! For example, the honor certificate of donation issued by my child's school and stamped with the official seal of the superior department.

I value formal credentials, such as invoices, and throw them away at home if they are useless.

My father-in-law famously said that I once wrote in the book "Belle Franc" in his essay collection. He said: Men are rakes, women are boxes, and they are not afraid that the rake will not have thorns, but they are afraid that the boxes will have no bottom.

That's a proverb in the Northwest, which means that a man can't afford to leak a hole in a woman's pocket with the money he gets back from the outside with a nail rake like Zhu Bajie's nail rake!

Therefore, one of the keys to financial management is that the pockets (boxes) that hold money should be absolutely strong! In order to prevent money from leaking out, we must keep in mind the law of the movement of money, and put more money in and less out.

That is what people often say -- open up sources and reduce expenditures.

To put it bluntly, it's a big deal that others say that I slam the door!

The money is in my hands, who am I afraid of?

In fact, thrift has nothing to do with wealth, and the real rich never spend money chicly.

For example, Warren Buffett, the richest man in the world, is famous for picking the door in life. His suit was a conservative style that had long since gone out of fashion, his shirt didn't look like it fit, he always nestled around his neck, and his shoes were badly worn. For a while, he wore a baggy T-shirt with the SEC logo on it. His daughter bought him two track jackets. He asked his daughter to return her clothes on the grounds that he already had a sports jacket. Buffett is also very simple in eating, and his lunch is often popcorn, potato chips, and coke. Warren Buffett likes to drink Coca-Cola, because he has been holding Coca-Cola stock for a long time, so he always buys 50 cases at a time of 12 cans at a satisfactory discounted price. His house was an old gray one, and the municipality said his house was detrimental to the city's appearance.

When it comes to frugality in proportion to one's wealth, no one can compare to Warren Buffett, and everyone has the potential to be more frugal. How much you earn doesn't count, but how much you can make money is what really belongs to you.