From an economic perspective
Rich people = those with high net worth, high free cash flow, and strong risk resilience
We can use the following five core indicators to determine whether a person belongs to the 'wealthy class'
1️⃣ Sufficient net assets
💡 Definition: Net assets = Total assets - Total liabilities
Nationally recognized classification (based on family units):
Net Assets < 0: Financial deficit population
Net assets 0 to 500,000: economic starting population
Net assets 500,000 to 3 million: middle class
Net assets over 3 million: primary wealthy population
Net assets over 10 million: high net worth families
🧮 One of the underlying characteristics of the rich: 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 = Disposable income - Necessary expenditures
Monthly income of 20,000, but monthly expenditure of 25,000 (relying on loans), ≠ Rich
Real rich people can not only earn a lot but also keep it
And regularly allocate funds for appreciation
📊 Criteria for Judgment:
Monthly surplus ≥ 30% of income, and continuously growing
Having a 'fund allocation system': clear accounts for consumption / savings / investment
3️⃣ Having stable asset-based income
💡 The rich do not rely on time to make money, but rather on assets to make money
In terms of income structure, the rich possess the following characteristics:
High proportion of passive income (rent, dividends, interest, platform sharing, etc.)
Active income is an option, not a survival necessity
Diversified income sources, not relying on a single employer or platform
🔁 Beyond salary, having the ability to 'make money' is typical rich thinking
4️⃣ Scientific asset allocation, stable risk structure
💡 The rich do not earn quick money, but rather hold onto their assets and withstand cycles
Diversified allocation: cash flow > wealth management > stocks > real estate > private equity/projects, etc.
Strong asset risk resilience when encountering black swans (pandemics, layoffs, family accidents)
Having a complete set of 'asset protection tools' such as insurance, emergency funds, investment portfolios, legal awareness, etc.
📌 Being able to hold, withstand, and maintain is the standard configuration for the rich.
5️⃣ Wealth brings choices
Real rich people have three freedoms:
Freedom to resign: not relying on the boss for livelihood;
Time freedom: assets help him 'nurture time';
Freedom of choice: having money gives you the confidence to say 'no'.
Keep it up, I am Little Seven, a sincerely wishing you to become rich in the crypto circle old investor.
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