For common people, the most effective way to accumulate principal is to make money and save money. Most people do not have the luck to win the lottery, nor the opportunity to inherit huge wealth. The most effective and common way to obtain the principal is to save.
Maybe many people have lost interest in saving, because saving is often associated with frugality and affecting life. Your mind might fill the picture of squatting in the corner and eating cheap bread pitifully.
If saving does not mean to decline quality of life or need to economize, saving will become much easier. We can consider this question - does less time mean less tasks? Not necessarily, because different people have different work efficiency.
The same is true of consumption. Less consumption does not mean lower quality of life, because we can also improve consumption efficiency and let consumption create more value.
We have certain methods to do well in time management, so we can certainly find certain methods to do well in consumption management to improve our consumption efficiency and increase savings.
Effective planning and restriction on consumption can effectively improve consumer happiness.
The limited budget will make us give priority to the most needed and important things, rather than buying what we think at once. This will improve the utilization rate of unit consumption.
Because consumption is limited, we will give more consideration to making more use of existing goods. The happiness generated by each consumption will be longer-lasting.
It achieves the same functions as high priced products at a cheaper price, and the sense of happiness at least is double. In fact, good things that really suit you are often inexpensive.
Give priority to the things you need most.
The most ideal situation is not to buy useless things, but to buy necessary things.
The most suitable is the best, and often not the most expensive.
The savings rate is the most important indicator affecting the progress of financial freedom.
The impact of the savings rate for achieving financial freedom is exponential, and it is much easier to increase substantially the savings rate than the yield.
We can easily achieve the savings rate from 10% to 50%, but it is very difficult to increase the return on investment from 10% to 20%.
It is reliable to achieve financial freedom through managing money matters. As long as we formulate and implement our own consumption savings plan and choose a relatively conservative investment, we can finally achieve it.
It's easy to say, but it's hard to insist to save money, because there are too many temptations. The process of financial investment and losing weight are very similar. The method is simple, but the persistence and effort required in the process are hard.
