Anyone does n’t have a lot of money in the beginning, what should I do? If you have good credit, you can borrow a lot of money from the bank through credit. This is to enlarge our credit from scratch. The simplest is a credit card.
Starting from a credit card, if we use the bank's funds to serve us reasonably within our control, it will be very helpful for us to do everything from small credit cards to large loans to buy a car, a house, or even a business.
In the modern financial system, how can we rationally operate funds, how to make money, and how to make money from bank money, we can imagine how the more successful entrepreneurs and investors started from scratch and how to borrow money to operate funds. Human success must be justified.
What does the bank do?
Banks are first and foremost companies that do money intermediary business or companies that do money trading business, but only pay a deposit to the central bank. The bank itself has no money. It depends on absorbing deposits and making loans to earn interest differentials. As a business, you must make money.
有一个装修公司，刚刚做完一个装修项目，拿到20万的工程款，于是，装修公司把这笔钱存进了银行，所以，银行就拥有了100万元的资金。 Suppose: there is a decoration company that just finished a decoration project and got 200,000 yuan in engineering money, so the decoration company deposited the money in a bank, so the bank has 1 million yuan of funds.
At this time, Mr. Li, who opened a small store, felt that the market was very good. To make more money, he must expand the store, expand the scope of business, and make it a comprehensive small supermarket. However, his own funds It was not enough for him to expand. So, Mr. Li found the bank. Mr. Li had dealt with the bank a lot before, and Mr. Li quickly loaned 200,000.
Next, Mr. Li asked the decoration company to expand his store. Assuming that the price of the decoration is exactly 200,000 yuan, Li Xianxing paid the loan of 200,000 yuan to the decoration company, and the decoration company deposited the money in Bank, then the question is coming, how much money is there in the account of the decoration company? A total of 400,000 yuan, but how much money is in the bank's capital warehouse? Only 200,000, but how can there be 400,000? Why 200,000 will become 400,000 out of nothing. At this time, the paradox comes, and many people can't figure it out. However, this is just a simple economic phenomenon.
If the decoration company starts construction one month later, due to Mr. Li's reasons, the cost of expanding the storefront will reach 400,000 yuan. Mr. Li is also helpless, but the construction is only halfway and can only be continued. The money was paid to the decoration company. In this way, how much money does the decoration company account have? There is already 600,000 yuan, but how much money is actually in the bank? In fact, it has always been only 200,000 yuan. During the entire flow of funds, the 200,000 yuan has been placed in the bank and has never been out.
This is the leverage of funds played by the bank. Here, I have only borrowed it twice. In reality, this operation will be performed more times. It is no problem to repeat it a few times. Even if there are only 200,000 in the bank warehouse, but in the end The bank can create countless money through this 200,000, and the bank has done several business with a sum of money. No wonder the bank makes so much money.
This is the bank, so we also have to learn from the bank, and use reasonable financial leverage to help us achieve our desired goals.
In real life, more than 90% of the money we see on our bank accounts is actually just numbers, not cash, but all electronic money. If all savers come to withdraw cash at the same time, the bank will run out of cash immediately Bankruptcy is the case for any bank in the world. Banks are masters of capital leverage and masters of cash flow.
This is the advanced wisdom of human beings. This happens under the condition of credit. If a large number of people default here, the bank will fail. This is why many private lending companies now fail because of borrowing. The money that goes out cannot be collected, resulting in a broken chain of funds and unable to pay the funds. The failures were due to insufficient risk control.
The foundation for the survival of banks and the entire world economy is actually our trust in the future, not the economy itself.
Why did the bank lend money to Mr. Li?
Because the bank saw Mr. Li's credit report, Mr. Li is a person who has the ability to repay and has a good intention to repay. The store business where Mr. Li has expanded his investment will skyrocket and earn considerable profits. In this way, Mr. Li can repay the loan and interest. At that time, if the decoration company wants to take the deposit away, the bank can easily handle it. Therefore, we can see the entire operation process, which is based on everyone's future This kind of trust! The bank believes that Mr. Li will definitely pay back the money, and the decoration company also believes that the bank will take good care of the money and can withdraw it at any time.
If it is not based on trust in the future, can Mr. Li expand the store without sufficient funds? Obviously impossible. As a business operator, Mr. Li will be eliminated by the market if the store is not expanded. Mr. Li will not be able to make any money.
In fact, humans have been trapped for thousands of years in this endless cycle. As a result, in the thousands of years before our time, the entire human economy has frozen and its growth rate has been very slow.
So when the economy is bad, the country will issue more currencies to stimulate the economy. When the economy is good? The currency is not enough to circulate, and more currency will be issued, which makes the circulation smoother and the economy better.
Money is nothing but a piece of paper. What value can a piece of paper have? But this paper can exchange anything, because this paper carries the credit of the country, and everyone trusts the country.
Modern society has developed a system based on credit, called credit. The use of credit has finally allowed society to step out of this "economic freeze" cycle.
To put it simply, "credit" is to advance the future money. As long as we use the future income to invest in the present, it will bring new and beautiful business opportunities and create a better life now.
The former "hard work to get rich" statement now needs to add a premise. Hard work alone is not enough. You also need to understand the nature of money and understanding of borrowing, because doing anything requires dealing with money. If a person wants to get rich through hard work, he must dare to borrow money from others and seek faster development through capital operation.
Borrowing money is a kind of credit bearing, and it is also a kind of ability. It can only be played on the basis of financial quotient. Otherwise, there will be a danger of cash flow breakage and a risk of irrepayment. Have the courage not to be afraid of risks and bear the responsibility of debt repayment, meet the difficulties under the pressure of debt repayment, realize the glory of suffering in the challenge, greatness comes out!
Looking back at China today, we will find that the rapid growth of any industry requires capital, and the implementation of large capital operations can directly become the leader of the industry. I would like to ask, which of the large enterprises trying to win competition by accelerating the pace of expansion and increasing scale advantages, did not rely on bank loans or listed financing to obtain funds?
Therefore, if a person or an enterprise wants to become bigger and stronger in the competition, capital is a big problem that must be faced. At this time, money is never enough!
A person or an enterprise has achieved such a state, instead of asking where their money comes from, it is better to ask why so much money is willing to come to them? If we are willing to study this issue carefully, maybe You can also find out their success!