Can everyone become a rich man in three simple words?

It is understood that there are currently several important financial management concepts commonly lacking among middle-class leaders in China-these concepts will affect their future behavior. If they can honestly implement these financial management concepts, every person can become a millionaire after at least 10 years of persistence.

The first concept of financial management: differentiation between "investment" and "consumption"

Before the average person consumes, there is no such concept. Before people learn economics, they will consider that this consumption is an "investment" behavior or "consumption" line.
Yes.
　　

A and B were undergraduate students 10 years ago. After five years of social work, they saved 0.3 million yuan in total. Five years ago, they spent the 0.3 million yuan.

Jia went to Tongzhou to purchase a suite. B bought a"
Audi ". Five years later today: A's house has a market value of 0.6 million yuan. B's second-hand car has a market value of only 50 thousand yuan.

The current assets of the two are obviously quite different, but their incomes are the same, and they have the same degree of education and basic social experience. Why are the wealth of the two different people?

A's spending money to buy a house is an "investment" behavior-the money is not actually spent, but it is transferred to the house, and it will still belong to itself in the future.

B spent money to buy a car is a "consumption" behavior-money is spent, and given to others, a second-hand car has been used for 10 years, almost nothing. Unlike a house, a car may have quadrupled in 10 years.

The second concept of financial management: Harvard dogma

At the famous First University in the United States, Harvard University, the first economics class only teaches two concepts.

The first concept: money must be divided into "investment" behaviors or "consumption" behaviors.

The second concept: Save 30% of the monthly salary, and the rest will be consumed.

The people taught by Harvard will be very rich in the future, not mainly because they are from a famous school and have a rich income, but because of their monthly behaviors. They are only one thing different from ordinary people:

Harvard dogma: savings of 30 is a hard indicator, and the rest is consumed. Saving money every month is the most important goal of every month. It will only exceed the limit, and the remaining money will increase.

Average Person: spend money first, save as much as you can, and save as little as you can.

The third concept of financial management: "three statements of Financial Management"

(1) saving 30% of monthly salary, saving first, and then consuming (2) annual return of over 10% of investment (3) Persistence for over 10 years

Financial management can't go out of these three sentences. Every sentence must be thoroughly understood and fully executed. It cannot be so sloppy that a working group can become rich.
Buffett said in his book that he started saving at the age of six, 30 yuan a month. By the age of 13, when he had 3 thousand yuan, he bought a stock. He insisted on saving every year and investing every year. For ten years, he insisted on 80 years. At the age of 85, he is the richest man in the United States and has more money than Bill Gates, chairman of Microsoft.