If you can do it:
When you have 10,000, don't change your phone; when you have 100,000, don't change your car; when you have 300,000, don't make reckless investments; when you have 1,000,000, don't lend money to others; when you have 3,000,000, don't waste your wealth.
Then you can master money,
Instead of being driven by money.
1. When you have 10,000, don't change your phone
1.1 Reason: 10,000 represents that you are in the early stage of financial accumulation, with limited funds. Changing your phone is a consumption behavior, and phones are rapidly depreciating goods. Frequent changes will consume your principal. At this time, you should prioritize savings, establish an emergency fund, or invest in self-improvement (such as learning skills), rather than pursuing unnecessary consumption. This fosters awareness of frugality and priorities, avoiding the waste of "small money."
1.2 Manage Money: By controlling small expenditures, you have learned to delay gratification and allocate funds, which is the foundation of financial discipline.
2. Do not change cars when you have 100,000.
2.1 Reason: 100,000 yuan is a relatively small savings, but changing cars usually requires a large expenditure, and vehicles are depreciating assets (they begin to lose value the moment they are purchased). If you change cars at this time, you may exhaust most of your savings or even go into debt. Instead, funds should be used for appreciating assets (like investments or entrepreneurship) or to enhance income capacity. This avoids 'face consumption' and debt risks.
2.2 Manage Money: You have learned to distinguish between 'needs' and 'wants,' focusing on the appreciation of assets rather than the accumulation of liabilities, thereby accelerating wealth growth.
3. Do not invest recklessly when you have 300,000.
3.1 Reason: 300,000 yuan is a substantial amount of money, but it is also a stage where many people easily make investment mistakes. Out of greed or eagerness for quick success, one might fall for high-return scams or venture into unfamiliar fields (like stocks or cryptocurrencies), leading to a loss of principal. Investment requires knowledge, risk management, and diversification. At this time, one should focus on low-risk, stable investments (like index funds or real estate down payments) and continue learning.
3.2 Manage Money: You have developed investment rationality and patience, avoiding the trap of 'getting rich overnight' and ensuring sustainable growth of wealth.
4. Do not lend money externally when you have 1,000,000.
4.1 Reason: 1,000,000 yuan means you have reached a moderate level of wealth, but lending money to friends or relatives can easily lead to financial disputes and strained relationships. Lending is often based on emotions rather than rationality and may not be recoverable, affecting your cash flow and financial plans. Instead, one should maintain financial independence and learn to politely refuse or help in other ways (such as offering advice).
4.2 Manage Money: You have learned to protect your wealth boundaries, avoid 'emotional finance' distractions, and ensure funds are used for your own goals and security.
5. Do not mess around when you have 3,000,000.
5.1 Reason: 3,000,000 yuan provides a certain sense of financial security, but it is also a stage where many people start to 'inflate,' possibly engaging in gambling, high-risk speculation, or impulsive entrepreneurship, leading to huge losses. Wealth management requires ongoing caution and adherence to long-term strategies (like asset allocation and retirement planning). Foolish actions often stem from overconfidence or boredom.
5.2 Manage Money: You maintain calm and discipline, avoiding the misconception that 'wealth is sought in danger,' allowing wealth to grow steadily through compound interest.
6. Do not leak wealth when you have 30,000,000.
6.1 Reason: 30,000,000 yuan is a significant wealth, and leaking wealth (like flaunting luxury goods or disclosing assets) may attract scammers, kidnappers, unnecessary lawsuits, or social pressure. Acting low-key helps to protect privacy and security, while also avoiding jealousy and trouble. Wealth should be used to realize life's values (such as charity and family legacy), not vanity.
6.2 Manage Money: You understand the patience and responsibility of wealth, avoiding the risks of 'drawing attention to oneself,' thereby protecting wealth in the long run.
7. How to manage money?
7.1 Control Desires: Money is not meant to satisfy short-term impulses, but to achieve long-term goals.
7.2 Manage Risks: Protect principal and growth by avoiding unnecessary risks.
7.3 Stay Low-Key: Reduce external threats and focus on the intrinsic value of wealth.
