Retirement is definitely not a more frugal life! Former Finance Chairman Zhang Lingling: 2 things you must do if you want to be free and rich

Editor: The key to wealth and freedom is to reduce sales and increase passive income. Everyone knows this truth, but how to do it? Zhang Lingling, a Chuangfu Education manager, has served as a senior executive in the finance industry for many years. She pointed out that only by keeping in mind your own needs and financial gaps, and by accumulating passive income through low-voltage investment tools with high interest rates, can you live a wealthy retirement life.

On this day she met Zhang Lingling, a founding coach, she just finished her part-time job at university and officially entered her retirement life. She laughed and said that on the first week when she didn't have to work, she still got up at 6 a.m. every day. I opened my eyes and remembered that every day after that was my own time. Life is more free after you don’t have to work for money.

Zhang Lingling, 58 years old, has served as the chairman of Taiwan Futures and Yang Securities, and has worked in the finance industry for many years. She has a PhD in Organizational Psychology and also invests in the Department of Business Management at Taipei City University of Science and Technology to help students find blind spots in financial behavior.

She observed that people who cannot accumulate wealth have three major characteristics: not paying, spending impulses, and lack of correct financial knowledge. How to improve the bad habit of making money "lost money", create more passive income, and achieve the goal of financial freedom?

Everything must be done 1: Remember financial loopholes and grasp actual income and expenditure

"I often tell students that the first step in managing money is to organize money," Zhang Lingling said. She had a habit of remembering since she was 20 years old, because the economy at home was in progress when she was a child, and the three sisters and sisters had to work on their own to earn school and living expenses during their childhood. Only by recording each income and expenditure clearly can you confirm whether the money is useful.

After leaving society, she entered the securities industry. The client knew that she had good accounting skills, and the Standing Committee member asked her to help calculate the profits of stock investments from different accounts. After getting married and having children, she also managed family expenses such as housing loans in the same way, laying a good foundation for future wealth accumulation.

Why does accounting for assistant finance? Zhang Lingling pointed out that people's memory is not reliable. Especially the consumer society is full of confusion, and people often feel unconscious and don’t feel sad if they spend money easily. However, the daily consumption of 100 or 1000 yuan will increase by 30,000 to 30,000 yuan in an additional sales in one month. "Some people think that they don't sell much, so they should use it. After recording, they found out that this is not the case."

She recommends using mobile apps to record accounts, such as CWMoney and other apps, which can record the types of sales for future comparisons. For example, she will sell her meals into fruits and vegetables, cold meat, breakfast, lunch and dinner, and other items. In this way, you can determine which food you spend the most and the cost of eating out of different months. "The more you remember the account, you will know how to adjust your budget."

She also suggested that the longer the account, the better. After all, the food and clothing are different all year round. "Clothes in winter are more expensive than in summer." Only by recording for at least one year can you fully grasp your consumption habits. In addition, some consumption only happens once every year. For example, if the electric failure in my hometown needs to be repaired, and if you want to renovate your home after retirement, you must be included in the budget in advance.

"I haven't met someone who has been a one-year recorder and has not saved any money!" Zhang Lingling smiled. The biggest benefit of accounting is that it makes people sensitive to numbers and change their consumption behavior. For example, she had a friend who had been a cigarette gun for many years, but after recording for three months, she decided to quit smoking. "The price of a pack of cigarettes is not expensive, and buying it at will is nothing, but it will be amazing after a year!"

Must-doing items 2: Increase passive income and allow you to get money if you don't work in the future

to deposit a rich deposit, and then you can leave your job? Zhang Lingling mentioned that some friends in the past had good incomes and believed that they had enough pensions. However, after retirement, they spend money on socializing, traveling and having fun. In addition, the unanticipated expenses such as children preparing for marriage and having to decorate old houses for many years have surprised them that they are not using it!

"When you don't have a fixed source of income, you will feel nervous and uneasy. This is not the emotion you should have after retirement." Zhang Lingling pointed out that there is a formula for freedom of wealth: annual passive income/annual total sales. Only when the number is greater than 1 can you retire with peace of mind. The method of achieving financial freedom is nothing more than making the denominator less open and the passive income of the numerator increase. The former can be managed through account, while the latter requires planning investment.

She reviewed her journey from office workers to wealth and freedom. The most important investment decision is to buy an annuity that you have returned at the age of 35. The stock market was just right at that time, and most people around him thought the interest rate of annuity was too low and they did not agree with her. But she believes that you should be good in your old age, and a stable passive income is more important than high profits. "When my stocks are no longer stable and my brains are no longer alive, I will still be given an annual salary fixed when I get back the annuity."

However, she also admitted that the economic environment in 2000 was very different from today. At that time, the annual insurance premium was not high, and the annual interest rate could reach 7%. In today's low-profit environment, insurance products with such high interest rates can no longer be found on the market. Despite this, creating passive income and spreading risks are still the key to wealth and freedom. She suggested that we could choose "low wave and high interest rate" fund products. Most of the fund products of this type of fund are investing in financial stocks, asset stocks, etc., with less volatility in investment, and cash dividends are allocated stably every year, which is a good choice for the people preparing to retire.

If you want to invest in stocks, Zhang Lingling's approach is to choose the dragon stocks of different types of industries. For example, semiconductor stocks are selected for Taiwan Electric (2330), 5G electronic stocks are selected for Huatong (2313), steel iron stocks are selected for steel (2002), etc. The stock price of companies in different industries will fluctuate, thus achieving the purpose of balancing risks.

She believes that stocks are the most effective investment tool to fight inflation. As demand leads to the rise in animal prices, economic growth will also drive the improvement of production capacity, which will lead to a long-term increase in stock prices. She also said bluntly that reducing sales is not a good way to fight inflation. "Eat one less chicken leg to save money. How long can it take? Choose potential industries to invest. Even if you are inflated, your investment portfolio will continue to increase."

Don't save on 4 things after 50! Health, socializing, learning, traveling

has passed the age of 50, and more and more friends have left their jobs. Zhang Lingling observed that in addition to not spending money, retired friends' worries also include losing focus in their lives, feeling anxious or anxious. Some people also had problems with their bodies and entered and exited the hospital in and out of the hospital.

She emphasized that after retirement, you must live a healthy and happy life, and you must not save money on these four things. Her most proud achievement now is not that she makes a lot of money, but that she has strengthened muscle mass throughout her body. Her previous lifestyle of sitting in the office for a long time has made her a high-risk group for sarcopenia. After two years of training, she can carry 40 kilograms of heavy objects on her shoulders. She said with a long-term focus, "I can still go to work and make money. If I have money and are not healthy, no matter how much I earn, I will just send it to the hospital."

Having served as a senior executive position such as chairman and president, Zhang Lingling hopes to start over in her life after 50s and challenge interesting things that she has never tried. For example, in the acting class, she learned how to be an actor, "I've always been curious about how someone can fall out of her eyes in a few seconds!" she laughed. In addition, it is also indispensable to have dinner with friends at regular intervals, go out for a walk, and go out for fun.

She pointed out that after retirement, the budget for learning, travel and entertainment will be at least twice as high as before retirement. Remember to grasp your own needs and financial gaps, and only by investing in accumulating passive income can you have enough wealth in retirement. "Retirement life is to be more content and happy, it is definitely not more complicated to have more clothes and food!"

Original text: Being worried is not the kind of love you should have after retirement! Former financial director Zhang Lingling: 2 things you must do if you want to be free from wealth