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Let's Talk About Financial Health


The pandemic has been going on for a long time, and it continues to break out repeatedly. From the current situation, this state will continue.

Many people have also been under great financial pressure due to the impact of the pandemic.

So today I want to talk about my views on financial health.

The premise of this definition is that I expect my own life expectancy to be 110 years old. The reason why it is 100 years plus 10 years is because the elders in my family are relatively long-lived, so my genetic foundation can allow me to live to 100 years old without accidents. Another 10 years is because I believe that modern technology and modern healthy lifestyle can allow me to live longer.

But people are in pursuit of the meaning of life, and simply living long does not bring a sense of meaning. They must also live healthy in order to live a meaningful life.

Based on the above expectations, I divide health into three pillars: physical health, mental health, and financial health.

These three pillars are interrelated and there is no order of precedence.

I will only talk about financial health today. Most people who can’t hold on during the epidemic did not pay attention to this.

Financial health means that your financial situation is in a safe and sustainable state.

The sustainability of finance is a relatively complex topic. I recommend the “You Know and You Do App”, which has free introductory tutorials on financial planning.

In simple terms, financial security means that risks must be controllable. What is risk controllable? Take myself as an example.

I have always been a practitioner in the Internet industry, but my financial income from the Internet industry is mainly in the form of cash income, and then I invest this income in other industries.

I use this method to hedge the risks of my own industry. This is also the main function of finance, which is to generate value through circulation.

In terms of career, I am optimistic about the Internet and various new technologies, and I am actively involved in it, but this does not mean that I must bear higher and higher industry risks.

Risks and opportunities do coexist, but everyone has their own risk threshold.

Like my goal is to live a healthy life to 100 years old, so I set the lower limit of my financial risk relatively high. This has allowed me to avoid many risks and opportunities at the same time.

You also need to set your own risk threshold according to your own goals. This threshold should not only consider yourself but also your family.

I have heard that many high-paid Internet personnel invest all their property in the Internet industry, and even use high mortgages to increase leverage, which leads to extremely high risks and even requires a lifetime to repay.

But as the old saying goes, the best time was ten years ago, and the next best time is now.

Whether your financial risks have already broken out, starting from now to establish risk awareness, carefully face risks, investments and leverage, you can still give yourself a better future.

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