《The Navarre Guide》 taught me about the concept of money: financial freedom is not about having money, but about having a system for the appreciation of wealth after one goes to sleep.
When young, like most people, I thought money was just paper, the more the better. It could buy a big house, a nice car, and enable my family to live a better life. Back then, the pursuit was, in essence, how much cash one could carry in their pocket and how much money was in their bank accounts.
This is the most basic and direct understanding of money. Later, after reading the book "The Navarre Guide to Wealth", especially the part about wealth in the book, I suddenly realized that my previous understanding of "money" might have always been at a relatively rudimentary level
Naval is a top investment expert in Silicon Valley. He explains the matter of wealth in an extremely clear and thorough manner.
He said that
- wealth is not the figures in your bank account or the money in your wallet;
- it is those things that can help you earn money even when you are sleeping,
- and it is those assets that can continuously generate income.
It seems that this can be understood as follows: Money is more of an exchange medium, a tool you use to purchase goods and services. It will depreciate due to inflation and also suffer losses from improper investments.
And the true wealth lies in those "hens" that can lay golden eggs.
For instance,
- a company that you own and which can generate continuous profits;
- the dividends and appreciation brought by the high-quality stocks you invest in;
- the royalty income generated by a best-selling book you created;
- or the continuous subscription fees brought by a software product you developed.
These are the true "wealth" in Navar's eyes. They don't require you to exert physical labor every moment, yet they can continuously generate value for you.
I began to consciously think about how to establish my own "after-sleep income" system, and how to acquire more "assets" that can continuously generate cash flow.
First and foremost, there must be an upgrade in cognition, a shift from "selling time" to "building assets".
For ordinary people, it might seem too far-fetched for them to start a company or develop a hit product.
But Navar's wisdom lies in the fact that he offers a shift in thinking approach.
We can start by focusing on the small things around us and consciously cultivate our "asset mindset".
For instance,
could you possibly share your particular professional skills with others who are in need by means of writing, creating courses, or providing consultations, thereby earning additional income beyond your regular working hours?
Could you perhaps acquire some knowledge about financial management and invest a portion of your savings in high-quality index funds or stocks of growing companies, allowing your money to work for you?
Our goal should be to gradually establish our own, diversified and sustainable "wealth system" through continuous learning and practice.