Finanzberatung & Finanzcoaching Hamburg | Finanzberater Dehua Chen

Dehua Chen & Author As of: 29.12.2022

Living Financial Freedom, Simply Explained

What you should know about money:

"Money is the measure by which success on earth is judged.

Money enables the enjoyment of the most beautiful things in life.

Those people become rich who have understood the simple basic rules of its acquisition.

Money still obeys the same laws today as it did six thousand years ago, when wealthy men crowded the streets of Babylon."

The Richest Man in Babylon

Book Recommendation: The Richest Man in Babylon

Secrets of Success from Antiquity

The First Step to Financial Freedom

“The Richest Man in Babylon gets straight to the point about the secrets of building wealth — no other book on finance has had such an impact!” – Bodo Schäfer

5 Rules for Financial Independence

These are 5 basic rules to become financially independent in the long term. Follow them and you will be able to build and grow your wealth.

Rule No. 1: Your income must be higher than your expenses

Create your personal financial plan

Control your expenses

Plan so that you can save at least 10% of your income

The difference between income and expenses is called cashflow

Rule No. 2: Invest your cashflow in assets instead of liabilities

Invest your cashflow consistently month after month

Assets are, by my definition, all investments that generate passive income for you

Make your money work for you, not the other way around

Try not to increase your expenses and avoid acquiring liabilities

Gradually you will succeed in building passive income, for example €100

Now you can invest €600 instead of €500 in assets

The wonderful thing is that it gets easier and faster over time

Financial Consulting Hamburg Passive Income Assets Liabilities

Rule No. 3: Protect your investments from losses

Don’t be blinded by higher returns and don’t risk your existing capital for it

Don’t be fooled into thinking your capital is 100% safe, because 100% guarantees don’t exist

Don’t be tempted or deceived into thinking you can get rich quickly

Entrust your money to those with experience in making money work

Protect your current and future wealth, e.g. through insurance

Such advice is free and can be worth gold, as it protects you from losses

Rule No. 4: Secure an income for the future

Make timely provisions for your needs in old age and for the protection of your family

Also protect your current income in case you can no longer work due to illness

Provide protection for your family in the event of death

Because an empty wallet is a tragedy for a person who can no longer make a living

Rule No. 5: Improve your earning potential

The more knowledge we possess, the more we can earn

Those who strive to perfect and optimize their profession will be richly rewarded

For self-employed professionals such as doctors, tax advisors, or lawyers: network with each other to exchange and share knowledge

Book Recommendation: Rich Dad, Poor Dad

What the Rich Teach Their Children About Money

Making money work for you instead of working for money

“The perfect book to get started” — Celine Nadolny / bookoffinance

The Game CASHFLOW® 101

Learn playfully how you can achieve financial freedom.

Cashflow® 101 was designed as a board game and developed by Robert Kiyosaki, author of Rich Dad, Poor Dad. It resembles Monopoly, but is far more valuable and better transferable to real life.

Learn in a group of like-minded people who also want to become financially independent or wealthy. Things you will learn playfully in this game:

Recognizing stock / mutual fund buying opportunities

Understanding key real estate metrics

How to escape the rat race

Negotiation skills in buying and selling

Creating a financial plan with income and expenses, as well as assets and liabilities

Understanding assets

Book Recommendation: A Dog Named Money

Saving, investing, stocks, and debt are the topics.

A children’s book, also suitable for adults as an introduction.

“Our life is a journey — if we master the subject, the journey can open opportunities and lead us in directions we never imagined.” — Bodo Schäfer