Why is it important to learn about personal finance and investment?

Neither personal finance management nor investment can be mastered overnight; they require continuous learning and exploration. Before deciding to start, everyone must have a deep question in their hearts: Is it necessary to learn about personal finance? Isn't it enough to know how to keep accounts, how to save, and how to buy insurance?

Some may ask: I don't want to become Warren Buffett, nor do I plan to work in the investment industry in the future. Do you think it's still necessary for me to learn about personal finance and investment?

If I don't want to be a mathematician, do I still need to know addition, subtraction, multiplication, and division?

If I don't want to be an athlete, do I not need to exercise regularly?

If I don't want to be a writer, can I remain illiterate and not learn to read or write?

Just like mathematics, literacy, and sports, I believe that investment is a necessary life skill. Therefore, regardless of whether you plan to rely on the skill of personal finance and investment in the future, or whether you want to become a Buffett, learning about personal finance and investment is indispensable.

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I. How much money does one need to achieve financial freedom?

The clear definition of financial freedom is that passive income exceeds expenses. So, when you have a continuous passive income and that income is significantly greater than your spending, you are very close to the goal.By the standards of the President of the United States, $1 million in investable assets is just enough to meet his consumption level.

Thus, paradoxically, the poorer one is, the easier it becomes to achieve financial freedom (provided that they must have the awareness for it).

II. Methods by which ordinary people might achieve financial freedom

1. Be born into a wealthy family, really, this depends on luck.

2. Start a business and become a self-made millionaire, where favorable timing, location, and people are indispensable, and most importantly, one must be intelligent.

3. Have a good job with a steadily increasing income.

4. Possess a unique skill, be able to do what others cannot, establish a personal brand, and become the number one in a niche field.

5. Invest and manage finances.

Alright, comrades, which one do you choose? No need to ask, with the first four paths available, who would bother looking at the fifth? For ordinary people, investing and managing finances offer a greater chance to achieve financial freedom.

III. What are the losses of not managing finances?Thirty years ago, it would be hard to find a bank customer with a hundred thousand yuan and ask for their thoughts; whether they regret not buying stock warrants;

Ten years ago, ask those with a half-million yuan in the bank how they feel today, if any of them have never bought a house;

One year ago, ask those with a million yuan about their stock trading experience, whether they made a profit or a loss.

If you don't manage your finances, your finances won't manage you.

Wealth management is the manifestation of cognition, the rational arrangement of time and money, and a tool to help life reach a higher level.

The focus is not just on wealth management, but on helping you more quickly and clearly understand what kind of person you want to become, what kind of life you want to live, how to spend your life, and what unique things you can leave for the world.

Eileen Chang said: "Fame should be sought early." The same goes for investment and wealth management. Because compound interest requires the accumulation of time. If everyone can incorporate the dimension of time into their investments, not just investments but also into their lives and work, there will be good results.

Persistence and patience are an excellent mindset, enabling people to handle everything better, especially in the field of investment.

If you are an impatient person, I think you can use the method of learning wealth management to temper your patience and perseverance, because this is very helpful and meaningful for the future trend of your life.

Investment is a part of your life, a part of your growth, and a part of your life. Please treat investment and wealth management as a lifelong matter. As long as you are mentally prepared, you can start investing at any time, but don't expect to make a lot of money right away. The learning and progress of investment and wealth management is a long-term process.Please provide the text you would like translated into English.