The money-making iron laws that rich people don’t share: 1. The first iron law: Ordinary people only need to focus on one thing throughout their lives, and that is gold. When gold prices fall, the economy is booming, invest and start a business; when gold prices rise, the economy worsens, invest cautiously.
2. The second iron law: Deeply research a niche field and become an expert. Regardless of the industry's size, being at the top can yield high returns because scarce expertise always has market demand, and clients will generously pay for professional knowledge and services.
3. The third iron law: Learn to harness the power of compound interest. Start saving and investing early, even with a small initial amount; through long-term compounding, assets can achieve astonishing growth. Invest a portion of your monthly income in stable financial products and let time add value to your wealth.
4. The fourth iron law: Always keep a 'risk reserve fund'.
At least convert 30% of your assets into cash or highly liquid products; during a market crash, those holding cash can buy at the bottom, while those fully invested can only be harvested. Liquidity is life.
5. The fifth iron law: Reverse investing, taking what others abandon.
When everyone is panic selling, you must have the courage to buy quality assets; when everyone is joyfully chasing highs, you must decisively exit. Emotions are the enemy of retail investors but the cash machine for experts.
6. The sixth iron law: Establish a 'sleeping income' pipeline.
Rent, royalties, dividends, automated businesses... passive income is the key to financial freedom. Active income exchanges for money, passive income exchanges for time, and time is the ultimate currency.
7. The seventh iron law: Only collaborate with 'paying' people.
Free consultations and favors will only drain you; truly valuable relationships must be built on mutual benefit. The smoother the client pays, the longer the cooperation lasts; free is often the most expensive.
8. The eighth iron law: Regularly 'declutter' ineffective assets.
If you're stuck in stocks, loss projects, or sunk costs... cut your losses when necessary; holding on will only make the hole bigger. Stopping losses is an art; you must dare to lose to win.
9. The ninth iron law: Work with a 'boss mindset.'
Even if you have a dead-end salary, treat yourself like a company: improving skills = developing products, building connections = expanding clients; your value is determined by the market, not by your boss's charity.
10. The tenth iron law: Information asymmetry is money.
Policy dividends, industry insider knowledge, technological breakthroughs... acquiring key information and acting on it promptly can leave most people behind. Information warfare has no smoke but is more brutal than real weapons.
11. The eleventh iron law: Leverage must be 'used in the right places.'
Mortgages are the best leverage ordinary people can access, but don’t gamble with consumer loans; businesses use debt to expand production, individuals use credit to integrate resources; leverage is an amplifier, misuse it and you may face irretrievable consequences.
12. The twelfth iron law: Health is the ultimate compound interest.
Money earned from late-night socializing may ultimately go to the hospital; overspending your health to earn money won't be enough to buy back youth. No matter how steep the wealth growth curve, it can never surpass the collapse of health.
