Summary of the Key Points
The central message of this article is that in both economics and daily life, repeating and following common sense is more important than pursuing novel knowledge. Common sense consists of simple principles that have been proven effective over time and through practice. Engaging in activities with a high probability of success and stable returns—such as being diligent, trustworthy, and managing finances wisely—is far more reliable than betting on unlikely events with potentially high rewards. The article illustrates this point by citing Wang Xing’s practical advice and Benjamin Franklin’s 28 rules of wisdom, emphasizing that winners rely on common sense, while losers fall prey to illusions. By adhering to common sense, one can achieve stability and long-term success.
Why Repeating Common Sense Is More Important Than Pursuing New Knowledge
You may have heard many “quick-rich secrets” or “instant success methods,” but most of them are based on low-probability events (such as winning the lottery or making quick profits through speculation), and most people who try them end up failing. Common sense, on the other hand, refers to principles that have been validated by countless examples—like “diligence leads to wealth” or “not owing debt brings peace of mind.” Although these principles may not sound exciting, they are highly reliable because they have a high probability of being correct. Following them may not result in extremely high returns, but they at least prevent you from making mistakes.
The article suggests that one can occasionally explore high-risk opportunities with spare money (such as buying a small amount of stocks), but it’s important not to risk all one’s assets. After all, life is not a gamble; stability is more crucial than achieving a sudden turnaround.
Wang Xing’s Practical Principles: The Fundamental Logic of Economics and Life
Wang Xing’s advice reflects the basic rules of economics and daily life:
- Cheaper beats more expensive: Platforms like Pinduoduo have gained a significant market share by offering low prices, and consumers prefer products with good value for money.
- Quality beats quantity: High-quality products, such as Huawei phones, are still popular despite their higher prices.
- Seriousness beats carelessness: Companies that are meticulous in their production (like Apple) tend to be successful, while those that are sloppy are more likely to fail.
- Patience beats impatience: In investing, holding onto quality companies over short-term market fluctuations can lead to greater returns.
- Diligence beats laziness: Hardworking individuals have more opportunities for promotion and salary increases.
- Trustworthiness beats lack of it: Businesses with a good reputation (like JD.com’s fast delivery and excellent customer service) attract repeat customers, and trustworthy individuals are more likely to be helped by others.
These principles may not involve cutting-edge technology, but they are essential for success in business and life. Those who ignore them will eventually face setbacks.
Franklin’s Financial Wisdom: The Secrets of Ordinary People’s Wealth
Many of Franklin’s 28 rules of wisdom are directly related to finance. In simple terms:
- Diligence is the mother of good fortune: Being diligent opens up more opportunities; for example, learning new skills can lead to better jobs or additional bonuses.
- Manage your finances wisely: Spend less than you earn and avoid overspending on luxury items.
- Every penny saved is two pennies earned: Saving money not only prevents debt but also frees up time and energy that could otherwise be spent working extra hours.
- Don’t burden yourself with debt: Avoid taking on loans that exceed half of your income, as it can be stressful and problematic if you lose your job.
- Time is money: Use your time wisely; learning new skills or taking on part-time jobs can lead to higher earnings in the long run.
Franklin’s Rules for Personal Relationships and Character: Hidden Sources of Wealth
Some of these principles may not seem related to finance, but they indirectly affect your financial well-being:
- Speak kindly: Avoid negative remarks that can harm relationships; being positive makes it easier to build connections with others.
- Think before you speak: Make careful decisions and avoid making promises or complaints that could cause problems.
- Help yourself first: If you don’t put in the effort, no one will help you.
- Protect your privacy: Sharing personal information can damage your reputation and relationships.
How to Apply These Principles to Live a Better Life
These principles are not just empty words; they can be applied practically:
- Invest wisely: Choose stable investments (such as index funds) and hold them for the long term.
- Work diligently: Do your job well and gradually gain experience; avoid frequent job changes.
- Manage your finances: Live within your means and save money for emergencies.
- Build good relationships: Treat others with respect, speak positively, and maintain a good reputation.
In summary, by following common sense and doing what is likely to be successful, you may not become rich overnight, but you can avoid many pitfalls and live a life without worries. This is the true definition of being a “winner.”