Why Financial Security Is More Important Than The Employment Security

Take Risk

Low risk high return investments can be made. All you have to do is learn how to do it. Remember, when it comes to investing, knowledge always eliminates risk. Learning is not difficult at all. It is no different from learning to ride a bike. You may fall at the beginning, but after a while learning not to fall, investing becomes as natural as walking.

People who haven’t achieved their financial freedom are more likely to avoid financial risk. It is always better to learn to manage risk rather than avoid risk.

Risk takers change the world. You can see very few people getting rich without risk. Many choose to depend on the state to avoid the risks of life. At the beginning of the Information Age, the phenomenon of benevolent state has come to an end. We know that. The Benevolent state was costing dearly. Unfortunately, millions of people around the world will be in a very difficult financial situation as they depend on “their rights” and lifetime bonuses. The greatest requirement of the Information Age is that everyone is self-sufficient.

The idea of “work hard and find yourself a solid, secure job” is from the Industrial Age. We no longer live in that age. Times are changing. However, people insist on not changing their minds as rapidly. They still think they deserve something. They believe investment is not their business. They expect the state, companies, unions or their families to take care of them on their retirement days. I wish they were right.

If you have already achieved your financial freedom, I will just say “Congratulations!”. Please help others to follow your path. If they need guidance, do not hesitate to help. Guide, but let them find their own way. Because there are many ways to financial freedom.

Whatever you decide, please keep this in mind: Financial freedom may be free, but it is not cheap. Freedom has a price, it’s worth it if you ask me. The trick is that financial freedom requires neither money nor good education. It doesn’t have to be risky either. The cost of financial freedom is measured by dreams, will, and the ability to overcome obstacles along the way. So are you ready to pay this price?

Assurance or Freedom?

• Go to school, get good grades, then find a solid, secure job.

• Go to school, get good grades, then start your own business.

If all people in the world were given these two options, the results could have been halved. However, people have become so used to the system that they do not know what they want. Even if they know, they don’t have the motivation to bring it to life. After all, many unknowingly find themselves applying the first option.

The reason millions of people seek assurance is actually what they’ve been taught at home and at school.

Most of us are instilled with employment security, not financial security, at an early age. In addition, since we are taught little about money, both at home and at school, what could be more natural than clinging to the idea of employment security?

If you look at people who are poor and have not achieved their financial freedom, you will see that they have opted for employment security. If you turn your head and look in the opposite direction, the rich and the people who have fully secured their financial freedom, you will see that they act with freedom.

Falling into the Debt Trap

The reason why most of the population chooses the first option and works without financial freedom is because of what they learned in school. They get into debt shortly after they finish school. This is such a deep debt that they cling to employment security even more tightly in order to pay their bills.

There are many young people who graduated from university with their diplomas and education loan debt. When they see that the amount of debt is between $ 50,000 and $ 150,000, they get depressed. If the parents covered the tuition expenses, then the parents may have to pay a loan.

An article I read recently wrote that most Americans had credit cards when they were students and would be in debt for the rest of their lives. This is because they took part in a scenario that became famous in the Industrial Age. Here is the scenario:

The boy goes to school, graduates, gets a job, and soon has money to spend. Now he can rent an apartment, buy a TV, new furniture, new clothes and of course a car. One day, this hero meets someone special, they fall in love with each other, and after a while they get married. Life goes easier with a double income. By putting a few dollars aside, they plan to own their own homes as all young people dream of. One day, they find that house, withdraw the money they have saved in their savings accounts, deposit the house down payment, and go under mortgage debt. Well, the new house needs new items, and they enter the furniture store that advertises in talismanic words, saying “Furniture in installments with no down payment”.

Everything is great, they throw a party to show off their new home, new cars, new stuff and new toys. After that, they will live in debt until the end of their lives. Then their first child is born.

Every morning, this ordinary, well-educated, hard-working couple leaves their children at kindergarten, making their way to the company where they work intensely. Now, employment security has become even more important for them.

Do you still insist on choosing the first option?

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Make Money in a Better Way

It Doesn’t Need to Have Money to Make Money

We know that many successful people dropped out of school without getting a degree or never went to college. General Electric founder Thomas Edison, Ford Motor Co Founder Henry Ford, Microsoft founder Bill Gates, CNN founder Ted Turner, Dell computer founder Michael Dell, Apple Computer Company founder Steve Jobs, Polo’s founder Ralph Lauren did so. Higher education is important in traditional professions, but for these men it wasn’t important in accessing great wealth since they started their own business.

So, What Do You Need?

If money isn’t needed to make money and schools don’t teach how to achieve financial freedom, then what is needed?

It is necessary to dream, to be determined, the desire to learn quickly, the ability to use God’s blessings, and to know how to earn income.

Which Way Do You Make Your Income?

Different ways of earning income.

An employee earns money by getting a job, working for someone else or working for a company. A self-employed person earns money by working for himself. An employer has set up a business that generates income. An investor earns money from the various investments she makes.

There are different ways to generate income. It requires different mindset, different technical skills, different learning path and different people. Different people find themselves closer to different areas.

Although money is the same everywhere, the way it is earned can be very different. Think of the different qualities required in all four ways and ask yourself which way you get the most of your income.

Each one is very different. Earning income from different segments requires different skills and different personalities, even if the person in each segment is the same. Switching from one method to another is like playing golf or tennis in the morning and going dancing at night.

You Can Earn Income in These Four Ways

Most of us have the potential to generate income in all four ways. Which one we choose has nothing to do with what we are taught at school. It is more related to our values, strength, weaknesses and interests. What kind of person we are determines how we will earn our income.

Whatever we do professionally, it is possible to earn income in these four ways. For example, suppose a doctor chooses to earn income as an employee. He can work in a hospital or a public institution. He can even become a military doctor or become a permanent doctor of one of the insurance companies.

The same man can also open a clinic and work as a self-employed. He can also choose to be an employer. He hires other doctors. He doesn’t have to work in his own polyclinic, then he can employ a administrator. If this doctor does not necessarily want to have a job in the field of health, he can also establish a company operating in a completely different sector. 

He can also invest in other people’s business or other investment instruments such as stocks, bonds and real estate.

Different Methods of Generating a Source of Income

The way we earn income depends on our character. Some prefer to work for someone else, some hate it. Some people like to own a company but also like to run that company. While some people like to invest, others avoid it by citing the risk of losing money. Most of these attitudes can be found in us.

You Can Become Rich or Poor in All Four Ways

There is no clear relationship between these methods and wealth or poverty. Earning millions or being broke is up to the person himself. Choosing one way or another is not a guarantee of financial success, and no one can give you any advice.

These Methods Are Not Equal

Knowing the different features of each method is useful in understanding which one or which ones are more suitable for us.

Let’s say I choose to earn my income primarily as an employer and investor. Because I would like to take advantage of tax benefits. Legal tax privileges for groups at the top of the table are limited. On the other hand, there are plenty of loopholes regarding tax that can be used by those below in the table. If I get my income as an employer and investor, I can earn much more money in a shorter time and I will not pay high tax.

Money Supports Life

I believe it is absurd to spend a lifetime working to earn money and pretending that money is not important. Life is worth more than money. On the other hand, money is also important in terms of supporting life. We must learn to make money without working long hours. That’s when we get plenty of time to do other things.

If you take a closer look at this simple table, you will see that it contains not only different views of the world, but also very different worlds.

Neither is better than the other. Each of them has strengths and weaknesses.

Some of us can walk more than one path, maybe even all of the paths. We are all different individuals, remember, one method is not better or more important than the other. In every village, town and city of the world, all kinds of professionals are needed in order to balance the financial stability of the society.

On the one hand, our interests change as we grow older and our experience increases. For example, many young people who have just graduated from school are elated when they find a job. However, after a year or two, few find that they are not interested in rising up the corporate hierarchy or are not interested in their business. These changes that come with age and experience cause one to seek new ways to grow, challenge, achieve financial reward and achieve personal happiness…

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I urge you to read my DON’T WORK TOO HARD -WORK FOR YOURSELF post.

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The Key To Being a Successful Investor

One tenth of the people in the world own nine tenths of the total assets. If we are not careful, this ratio can reach 95/05 and even 99/01 in a very short time. In other words, 1% of people can own 99% of wealth.

“Ah, but a man’s reach should exceed his grasp, Or what’s a heaven for?”

Robert Browning

It is our dreams that keep us moving forward. If your reality starts with your dreams, I am happy to say that your dreams will become your reality.

Why so? Because if we didn’t have dreams, we would be living just to survive. I don’t believe that most people’s goal is just to survive. Have you ever heard any teenager say that he hopes to be a stray bum? Usually they say things like: “I want to be president.” “I want to be an astronaut.” “I want to be a fireman.” “I want to be a doctor or an engineer.” These are professions that require effort and sometimes heroism, and young people have dreams and aspirations for these professions.

Winners are always young in spirit. They set high goals and have plans and enthusiasm to achieve what they aim for. They may have crazy dreams, but that’s better than not having them. Then they focus on whatever is necessary to achieve these dreams and make an effort in this direction.

Being stubborn is an important part of being a winner. Some people fail because they give up too soon. When I was little, my uncle always told us the story of a man who loved soda and therefore got into the soda business by creating a product called 3UP. It had failed. Therefore, he started to work again and this time came to the market with a soda called 4UP. This product had also failed. So he named his product 5UP and this time he did whatever it took to be successful, but as you can imagine, it failed again. Realizing that he still liked soda, he made another trial and named his new product 6UP. When this product failed, he completely gave up on this business.

A few years later, someone else produced a new soda and named it 7UP, which was a huge success. When I was young, I could not understand why my uncle kept telling this story. He has told us the same story many times. Later I realized that he actually wanted to tell us not to give up. I never forgot this story and never gave up. His story was very accurate. Tell yourself this story if you need it, and see your inner winning side come into play.

The other component of winning is simply having a winning attitude. I tell people to see themselves as victorious. Positive thinking helps. It is a great power. Winning requires you to have that kind of power. Power means durability. Being positive gives you the strength to deal with extremely difficult situations.

Are you stubborn enough to win? Then you can invest to make money! This is not a foreign region, and you don’t need a passport or visa to enter the winning investor class. I have heard many people say “I am too stubborn” when talking about themselves. But then they pretend they don’t have what it takes to invest! They even talk in such a way that you think they don’t have the right to learn about investment. They’re just missing out on a great pastime and also a better financial future.

Ignorance can cost a lot more than education, and this certainly applies to your financial education. Don’t let the fear of the unknown hamper your aspirations and financial well-being. There are people who would like to take advantage of you. As an example of this, I have seen such situations happen to successful athletes. While they had millions during their sports career, they lose all their assets within 10 years of retirement. Do not let such a thing happen on your own. Learn about money and use what you’ve learned in a way that works for you. This is the first and most important key to a successful investment.

Don’t know where to start investing? I suggest you read my THE FIRST RULE OF GETTING RICH post.

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Make Your Investments To Earn

People have three types of investment behavior:

  • Not investing at all
  • Invest in order not to lose
  • Invest to earn

People who do not invest at all expect the state, the company they work for or their families to take care of them after they retire.

Those who invest in order not to lose usually choose investments that they think are safe. This group constitutes the majority of investors.

Those who invest in order to earn, turn to higher return investments. They are more willing to invest, they research and learn more about investment.

The strange thing is that all of these people, regardless of their investment attitude, have the potential to become rich.

The reason many people invest in order not to lose is because they find the investment risky and compare it to gambling. In addition, almost all of them think they need to take more risks to get higher returns. However, there is not such a direct relationship between high risk and high return.

Raising money is a really fun game. However, most people live in fear instead of enjoying this pastime. Therefore, they take their steps cautiously. They make “safe” investments, cling to social security, and live below their possible standards. Millions of them are also bogged down in debt and live paycheck to paycheck. Although these people wanted to have fun, they did not learn to invest in order to earn. Therefore, they are not considered to have actually built a good life.

The 90/10 Rule of Money

Most of us have heard of the 80/20 rule. Now I want to tell you about the 90/10 rule. This rule is an always reliable practical rule that I also apply in my own life.

Very simply, in the money game, 10% of the players get 90% of the money. We know that 10% of the world owns 90% of the current assets. 10% of real estate investors hold 90% of the investments. One-tenth of these are also the ones with the highest wealth. The 90/10 rule also applies to specialties. For example, in basketball, 10% of all professional players earn 90% of the money.

The 90/10 rule also helped me decide which area to head to. For example, the reason why I did not choose to be a basketball player was that I thought I would not be able to enter 1 in 10 in this field. If you had seen me singing, you could understand why I am not a singer.

Ask yourself in which field or industry you can enter the 10%. Do you think you are in the 10% of your current job? If not, is it because of your lack of skills in your field or something else? This short conversation with yourself in front of the mirror will give you a lot. Just make sure that no one is around you while doing this…

I recommend you to read my SEIZE THE POWER OF MONEY post.

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A Motivation Post for Those Who Want to Get Rich

Everyone has financial problems. If you want to get rich, you have to solve problems. Identifying the problem creates the opportunity to reach a solution.

Each generation has and will have a unique set of financial problems. The challenges faced by my generation of parents were the global economic crisis and the oil shock. Their solution to these problems was going to school, finding a safe and good job, retiring at the age of 65, and spending the rest of their lives watching sports. For the vast majority of my parents’ generation, getting a good education and getting a good job was enough to survive financially.

Our generation is faced with a different set of financial problems. A good university education and a good job are not enough today. Exporting jobs overseas also makes the problem even more intricate.

The next generation, Generation Z, will have different financial problems that it will have to deal with. If our generation fails to clear the mess that the generation before ourselves left us, the complexity that the generation Z has to deal with will be much greater. Generation Z will have to deal not only with their own financial problems, but also with the problems they inherited or even inherited to their parents.

The growing scale of this problem, currently worth trillions of dollars, is daunting. Simply handing this problem over to the next generation will only make the problem bigger and more complex. As financial problems become bigger and more complex, the financial IQ we will need to solve them has to be higher. We will need all of our brainpower to solve this problem.

My suggestion to you is to overcome the storms in today’s financial world with proper financial education and planning. Find ways to solve problems and get richer with this training.

One thing we should all bear in mind is that a little effort is the best substitute for excuses. If we all make some effort to understand what is happening around us; If we can think with a superior, caring mentality, a more enlightened and correct way of thinking will emerge. While defining intelligence, problem solving skills are mentioned. This is possible with education. Just as there is no understanding, there is hate, if there is no education, there is fear.

Ignorance may be easier, but it often comes out of fear. Reduce your fears and trigger your courage.

This is an amazing power of energy if you have the determination to move forward quickly. And when you focus on the right thing, your chances of success are very high. I have always liked this statement of Alexander Graham Bell: “Concentrate all your thoughts upon the work at hand. The sun’s rays do not burn until brought to a focus.”. If you can control your energy then you will have a good opportunity to create and control your own level of wealth.

Problem solving will also become a lot easier if you think they are a challenge. Problems are part of life. It is inevitable that a positive approach to problems will give you more energy. Trust is a big step on the road to courage, and fear will evaporate when confronted with confidence.

At the beginning of the post I said that a problem can create an opportunity. If you start seeing your problems from such a perspective, I can also assure you that you will be on the way to solving them.

Like everyone else, I know that problems can be complex and sometimes seem like never ending. However, I would like to encourage you to see them as an opportunity to challenge you to great success. Just remember that reaching nothingness is easy… But who wants to reach nothingness? You can achieve great things with your financial intelligence.

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The First Rule of Getting Rich

In the previous post, it is explained that the first step to getting rich is to have accounting knowledge. In this article, I will tell you the first rule of simple accounting.

The first and foremost rule to get rich is to always invest money in active funds.

If we really want to get rich, this information is enough for us. This rule may sound very simple. It is so simple that it is often overlooked. Most people live without realizing how important this is. They always suffer financially because they don’t know the difference between active and passive investing.

If we adopt this rule, we will have a financial plan and will not suffer economically throughout our lives.

Now we must know the difference between active and passive.

While active funds make us money, passives take the money away from us. That’s all. If we want to get rich, we must buy actives for our lifetime. Thus, we can increase our wealth exponentially. If we want to be from the middle or poor class, we must constantly invest our money in passives.

The major cause of financial suffering in the world is due to not knowing the difference between these actives and passives.

Lack of knowledge is the main reason for financial confusion. Whether ignorance is about words or numbers. If people are in financial difficulties, there is something they cannot read about words or numbers. There must be something they cannot understand. The rich people get rich because they know how to manage their money. If we want to get rich and increase our wealth, we have to learn financial knowledge. In the language of both words and numbers.

Numbers alone may not make much sense. So are words. The important thing is the story of these together. This is the story of where the cash flows. We read that story in financial statements. The histories of four-fifths of families tell us that their financial history is hard work. It is not because these families work hard that they cannot earn money. They had to work hard all the time because they invested in passives.

It is not enough to have money. The point is not to get rich, but to sustain wealth. Therefore, we need to ask “How to maintain wealth?” question rather than asking “How to get rich?”.

It is obvious that, getting the money doesn’t solve the financial problems we have. Even it complicates the existing problems. Money often reveals our flaws. It reveals our unfamiliar sides.

Generally, the person who gets unexpected money gets relief for a short time, but soon starts to have financial difficulties again. Sometimes they even have worse financial difficulties. If the person with increased income tends to invest in passives, his expenses will also increase.

As we mentioned in previous posts, we take education to learn professional knowledge. We earn money thanks to our profession. But we don’t get financial skills at school. Therefore, our education cannot guarantee us a prosperous life. Even if we are very successful in our profession, we may have to deal with financial difficulties. Working more can’t solve this problem. Because the knowledge of how to spend the money in our education is lacking.

In fact, learning to manage money is more effective in getting rich than choosing a high-income profession.

Knowing how to manage money is a financial skill. People generally do not know the root cause of their financial problems. Because they do not know the cash flow and do not have financial skills. In this case, people cannot operate the money for their own benefit and they work too much and get tired.

Shortly, the active and passive investment issue is actually much simpler than it seems, and everyone should know about it. Cash flow is the story of how people use money. Active funds gradually make us money, and passive funds take the money out of our pockets.

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Why Accounting Knowledge Is Needed

In 1923, a group of great leaders and wealthiest businessmen held a meeting at the Edgewater Beach Hotel in Chicago. Head of the largest steel company Charles Schwab, president of the world’s largest utility company Samuel Insull, president of the world’s largest gas distribution company Howard Hopson, chairman of the board of International Match Company Ivar Kreuger, president of the Bank of International Settlements Leon Fraizer, president of the New York Stock Exchange Richard Whitney, also two prominent stock market speculators Arthur Cotton and Jesse Livermore, and lastly Albert Fall who is a member of the President Harding cabinet were among the participants.

In twenty-five years, these nine participants somehow came to an end. Schwab died penniless after five years of debt. Insull passed away totally broke, somewhere far from his homeland. Hopson lost his mind and eventually went mad. Whitney and Albert Fall had just gotten out of prison. Fraizer and Livermore committed suicide.

Does anyone know what really happened to these guys? The conditions that prepared the Great Depression and the collapse of the markets must have disastrously affected the lives of these people. However nowadays, we are going through much greater and faster changes. Probably 20-25 years from now, we will see explosions and ruptures parallel to their ups and downs. The real wealth is education, not money. Unfortunately, many people focus on money instead. If these people were open to learning, their wealth would gradually increase as long as they were informed and open to innovations. It is always knowledge that produces money. Money flies away without financial knowledge.

What matters is not how much is earned, but how much money is kept. Most people fail to understand this. Sometimes we hear that a poor person suddenly becomes rich when he wins the lottery, but soon he returns to his poor days. He has millions of dollars, but after a while he returns where he started. Or let’s look at the life stories of professional athletes. Some make millions of dollars in a year by the age of twenty-four. However, when they reach their thirties, we read that they sleep under the bridges.

There is a story of a football player at social media these days. He was making millions of dollars until a few years ago. Now, his friends, wife, lawyer and accountant allegedly took all of his assets. He is living in the basement of an old friend’s house. He is only thirty-seven. He asked help from his old clubs, then his story was featured in media.

In the late 1990s, many people suddenly became rich. Just like the 1920s. People are getting richer, and as they get richer, their greed increases. On the other hand, the poor live more and more miserable.

We hear these questions often: “Where do we start?” or “How can I get rich in a short time?”. Instead of looking for answers to these questions, people should have financial knowledge or basic accounting knowledge to get rich.

If we’re going to build the Empire State Building, the first thing we need to do is dig a deep hole and lay a strong foundation. If we are going to build a house, a 15 cm thick foundation will be sufficient. While most people are on their way to getting rich, they try to build the Empire State Building with 15 cm thick concrete.

Our school system argues that there may still be house construction without foundations. That’s why the floors of the houses are still soil. Hence, when students graduate from school, they lack financial basis. Finally, living paycheck to paycheck, they decide that the only way to find a solution to their financial problems is to get rich as soon as possible.

Skyscraper construction begins. Construction progresses rapidly. Soon a curved tower appears, not the Empire State Building. Sleepless nights come back then.

Accounting is perhaps the world’s most boring subject. It can also be called very confusing. However, if we want to get rich and keep it for a long time, the most important issue is accounting. The point is how to learn this boring and confusing topic. The answer is that; with simplifying.

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