Wealth is the essence of freedom

So what is the real freedom of wealth?

If you’ve read Robert Kiyosaki’s Rich Dad Poor Dad, then you know that Robert Kiyosaki’s definition of wealth freedom is:

As long as your monthly “passive income” exceeds your monthly expenses, you are financially free.

If you have read The Free Road to Wealth by Li Xiaolai, then you should know that Li xiaolai’s definition of wealth freedom is:

Personal wealth freedom means that one no longer has to sell his or her time to meet the needs of life. In fact, both definitions mean the same thing.

When Robert Kiyosaki refers to passive income, it means you get paid to lie down and do nothing while you sleep. It’s also called “sleep input.”

Li xiaolai said that we do not have to sell our time in order to meet our living needs, which is just the same as lying down to earn money.

The bottom line is this: we don’t need to spend our time doing things for money, but sell our labor and time for money.

See?

What is the essence behind wealth and freedom? In fact, the most fundamental freedom we want is not wealth, wealth is just a tool, and the freedom we want is essentially the autonomy of time.

That is, when we have accumulated enough wealth to meet our needs, to meet our survival needs, we can spend our time as we please. We can have the right to refuse to do what we don’t want to do, to choose what we want to do, and we may do these things, not for the money, but for the pursuit of higher things.

If you put it in maslow’s hierarchy of needs theory, it is: the rich stage, the ability to self-actualize.

In fact, most of us are still living in the level of physiological needs and safety needs, the best people in the workplace may be a little higher, it is only social needs and respect needs.

That is to say, most of us are still in the stage of food and clothing, a few people are in the stage of prosperity, only a few people are in the stage of prosperity.

Now most of us don’t have our own time autonomy, of course, you say I have ah, I want to play games, I want to play games, I want to eat when I want to eat, I want to work when I want to. However, if you don’t have enough wealth, you don’t have security, and while you may seem to have the autonomy of your time, you also have endless anxiety behind it.

In my opinion, time autonomy with anxiety is not autonomy, but a time diversion. You’re using this pastime to try to confuse yourself, to anesthetize yourself, to make yourself less anxious.

So, to have real autonomy over your time, you have to do what Robert Kiyosaki says:

Your monthly “passive income” needs to exceed your monthly expenses. Diminishing marginal cost

Diminishing marginal cost

So how do you make yourself capable of passive income? That is li Xiao said, we can no longer sell their time to make money?

One concept: marginal cost.

If the marginal cost of doing something or doing something gets lower and lower, meaning you pay less and less effort, you can have “passive income,” which means you don’t have to sell your time to make money.

Here’s an example:

For example, I am a programmer, I go to work every day, the company monthly salary for me, I work every day, is a mess is very miscellaneous, all work need I pay of time and energy to do it, you such a cost, will not be as you do, the more you pay the less time and energy, you pay the cost of not with the passage of time.

So how can I, as a programmer, reduce the marginal cost of my work?

For example, if I build an app myself as an indie developer, it takes me three months, but once I’m done, I upload it to the app market, and someone else pays for it, and I don’t care about it anymore. I still get a daily income, and the income is good enough to meet my daily needs every month.

It may not be obvious to say so, but let’s convert it into money. If it takes me three months to develop this App, and the time and energy invested in it are converted into money, it will be 30,000 yuan, which means that the cost of developing this App is 30,000 yuan. However, after the App is launched, it will bring me 3,000 yuan of income every month. So in 10 months I’ll pay for myself, and from 11 months on, my marginal cost is zero. Being an indie requires a lot of tinkering and maintenance, but it takes a lot of time, so the marginal cost is almost zero.

For another example, I am not a programmer, I am a we-media writer, I write a book is ok? Writing a book is one of diminishing marginal costs. I may spend a year to write the book, but in the next 10 years, I can earn royalties every year, and I can earn money passively. Is this cost almost zero when converted?

Again, for example, investment also is so, I can invest in stocks and funds, I just need to early to spend a year learning knowledge stocks and funds, the need in the market looking for the long-term value of the company, which is able to in the growth of the company every year, I would go to go, I will wait for value investing enough, you will gain you throw 100000, ten years later, Probably made $2 million.

So, if you look at your current job, can you do diminishing marginal costs?

Effect of compound interest

But, in fact, there is a hidden concept? The compound interest effect.

If you do something that is not only consistent with the law of diminishing marginal cost of your time and energy, but also consistent with the value of the "compound interest effect," you may be more likely to achieve wealth freedom.

Such as: I developed an App, after development, there is no need for’s a waste of time and energy, only need a little time to daily maintenance is enough, but, because of this software is very high quality, under the user’s reputation effect, income is more and more each month, the first month income 3000, the second month, 6000, 9000, the third month And so on, as word of mouth creates the “compound effect” of money, your chances of achieving wealth freedom are getting higher and higher.

Including writing a book this matter is the same truth, I spent a year to write a book, but it can sell well for more than ten years, each year’s sales will be due to good reputation, than the sales of the previous year doubled, then you make money will not have a “compound interest effect”?

It’s the same thing about investing, not to mention compound interest.

conclusion

So, in order to be financially free, you’d better do a job or something that fits these two characteristics:

  1. The cost of your time and effort is getting lower and lower at the marginal cost;

  2. The resulting value conforms to the “compound interest effect”.

If you can do both, you are perfect, and wealth and freedom may not be a dream.

In fact, what is behind diminishing marginal costs? You can sell many copies at the same time. Once you have the ability to sell many copies of your time, you can actually have more time in the form of time ownership.

Think about this is not the truth?

At the end

Public number: xiao He growth, The Buddha department more text, are their own once stepped on the pit or is learned

Interested partners welcome to pay attention to me, I am: He young life. Everybody progress duck together

If you’re doing things that cost you time and energy in a way that is consistent with the law of diminishing marginal costs, but also produce value that is consistent with the “compound interest effect,” you’re probably more likely to achieve wealth freedom.

What’s behind diminishing marginal costs? You can sell many copies at the same time. Once you have the ability to sell many copies of your time, you can actually have more time in the form of time ownership.