On the weekend, I played a cash flow game with my friends for an afternoon, and finally got out of the game.

1. What is a cash flow game

? Simply put, it is a microcosm of real life. It’s just that real life is more complicated, and from the moment you get the role, your career remains unchanged and becomes subject to changes in the market and life. Of course, the most important thing about this game is to test your resistance to risks, your thinking about investment, and your planning for life. (This is my personal simple interpretation of the game, for reference only.)

My story outline is as follows:

Role: Truck driver? Salary: 2500? Monthly balance 880

Risks experienced: 4 times of unemployment? 1 time of financial crisis. Due to the impact of the market environment, the mortgage loan needs to be paid off in one go. Almost bankrupt. When I had less than RMB 10,000 in cash, I bought a house with a loan. Because of the location and type of the house, the yield was relatively high. When I had the opportunity to sell the house, although I didn’t make much, I still chose to sell it. Have liquid cash on hand and be able to handle opportunities and risks when they arise. Risks and opportunities coexist. As long as there is an acquisition, there is a high probability that the stock will rise, but there is also a possibility that there will be no market, so you may be burdened with liabilities and reduce your income at the same time.

When encountering many high-yield projects, the principal was insufficient and the loan interest was too high, making the current cash flow lower than the income, so I chose to give up.

When the stock price is relatively low, although the first-hand income rate is high, in terms of overall income, the risk is within the controllable range. Choose a small part to buy, and when you encounter the opportunity to sell, although the income is not high , but sold it without hesitation.

I bought an insurance with a compensation of 100 for property insurance assets, but did not buy illness insurance. When the plague broke out, I spent an additional 6,000 (6,000 is also a large amount when the cash flow is insufficient)

When you encounter the opportunity to study and get a salary increase, you will not hesitate to spend money to learn. Although the time and money you pay in the short term are greater than the increase in salary, in the long run, it is undoubtedly worth it.

Although the starting capital is low, as long as you are in the right direction and are not greedy, there are still great opportunities.

Summary: We cannot choose our birth, but we can choose the path we want to take in the future.

1. Risks and opportunities coexist. If you want to get high returns, you have to take a certain amount of risk. If you choose to buy a house with a loan when your cash flow is insufficient, two situations will occur. First, the market is very good, and the house is sold for a lot of money; second, the market is not good, and the house may not be sold and may depreciate in value. If you have a low income and a high loan, there is a slightly greater risk, and you may directly face bankruptcy.

2. Cash is king. Opportunities are always there, the key depends on your ability to identify them and whether you have enough funds to start this new investment project. There are two benefits to having enough funds on hand that can be used at any time. First, resist irresistible risks; second, be able to seize opportunities and make money make money.

3. Reduce risks and make yourself sufficiently resistant to risks. When faced with a high-risk, high-return opportunity, and we do not have the ability to resist this risk, it is not a good way to choose capable people to work together. Although the benefits are small, the risks are also small, right?

4. Improvement of self-ability. All promotions and salary increases, understanding of the world, and investments all come from our own abilities, so investing in ourselves is the most fundamental origin and the best investment.

5. Liquidity is a very important point in measuring investment. Teacher Xiangshuai also mentioned in her finance class at Peking University that a very important criterion for the value of investment is its liquidity. No matter how valuable a project is, if it cannot flow, it will never be realized and money will not be made. In reality, there are many similar situations. For example, the average price of a certain house is 100,000, but it has been on the market for several years and has not been sold. Can you say that it is not valuable? Of course not. From an investment perspective, it can only be said that it is not a very good project.

6. Niche investments that seem to have great returns are suitable for small investments when the cash flow is large enough.

Diversify investments. If we cannot resist the big risks for the time being, it is okay to invest in a few more investments with small risks. As the saying goes, don't put your eggs in one basket.

7. Cooperation. When opportunities arise, when your own abilities are insufficient or in order to reduce risks, you can choose to cooperate.

8. The value of information, risk transfer, small but stable gains The income is also a good choice. Therefore, a very critical point in investment or trading is information asymmetry. If you have the latest information, but you are not able to bear the risk yourself, selling to someone who is capable is also a good choice.

? In the end, although I achieved financial freedom, and had two houses, 100,000 working capital, and a fixed income, I was already a good loser in comparison, but in this half-day game, I still made a mistake. Because I didn’t understand the rules of the game, I took a lot less money and paid a lot more interest.

Although the reality streaming game has achieved wealth freedom, it is only a small microcosm of real life. Facing real life, we need to be more rational and have an overall view in the future. Of course, you must continue to cultivate yourself so that you can truly achieve "wealth freedom." This road is long and not easy, but with the company of a group of friends on the same wavelength, I believe I am not alone and have a great chance of achieving it. Come on, I believe you who are reading the article can do it too!