From an economic perspective
The wealthy = individuals with high net worth, high free cash flow, and strong risk resistance capabilities
We can use the following five core indicators to determine whether a person belongs to the 'wealthy class'
1️⃣ Adequate net worth
💡 Definition: Net Worth = Total Assets - Total Liabilities
Common classification in the country (based on family units):
Net Worth < 0: Financially Deficit Population
Net Worth 0 ~ 500,000: Economic Starter Population
Net Worth 500,000 ~ 3,000,000: Middle Class
Net Worth Over 3,000,000: Primary Wealthy Population
Net Worth Over 10,000,000: High Net Worth Families
🧮 One of the fundamental characteristics of the wealthy: Even if they don't work for a year, they can still maintain a decent standard of living
2️⃣ Positive free cash flow, and continuously growing
💡 Free Cash Flow = Discretionary Income - Necessary Expenditures
Monthly income of 20,000, but monthly expenditure of 25,000 (relying on loans), ≠ wealthy
True wealthy individuals not only earn a lot but also retain it
and regularly allocate funds for appreciation
📊 Criteria:
Monthly surplus ≥ 30% of income, and continuously growing
Possessing a 'fund allocation system': Clear accounts for consumption / savings / investments
3️⃣ Having stable asset-based income
💡 The wealthy do not trade time for money, but rather trade assets for money
In terms of income structure, the rich exhibit the following characteristics:
High proportion of passive income (rents, dividends, interest, platform profit sharing, etc.)
Active income is an option, not a survival necessity
Diversified income sources, not relying on a single employer or platform
🔁 Besides salary, having the ability to 'make money work for you' is typical wealthy thinking
4️⃣ Scientific asset allocation, stable risk structure
💡 The wealthy do not earn quick money, but rather protect their assets and endure through cycles
Asset Allocation: Cash Flow > Wealth Management > Stocks > Real Estate > Private Equity/Projects, etc.
Strong asset risk resistance when encountering black swan events (pandemic, layoffs, family accidents)
Possessing a full set of 'asset protection tools' such as insurance, emergency funds, investment portfolios, legal awareness, etc.
📌 Being able to hold, withstand, and maintain stability is standard for the wealthy.
5️⃣ Wealth brings choices
True wealth entails three freedoms:
Freedom to resign: Not relying on an employer for livelihood;
Freedom of Time: Assets help them 'buy time';
Freedom of Choice: Being wealthy gives you the confidence to say 'no'.
Keep going, I am Xiao Qi, a loyal supporter wishing you to get rich in the crypto space.
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