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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The Difference Between A Good Investor And A Bad Investor

Many people invest in mutual funds. When I ask someone, who is investing in mutual funds, he answers: “But I am also investing. I have a portfolio of mutual funds. I also have bonds and stocks. Isn’t this all investment?”.

Yes, saving is also an investment. Buying mutual funds, stocks or bonds is also an investment. But it is the kind of investment a saver would make, not an investor.

Let’s take a look at the passive investor philosophy. Most investment advisors provide a recommendation like that:

• Work hard

• Save money

• Get rid of your debt

• Make long-term investments

• Diversify your investments

This is good advice for a certain group of people – suitable for people with a savings philosophy or passive investors. In today’s circumstances, I believe this advice is riskier than any financial advice. It may seem as a reliable and wise advice to those who are financially inexperienced.

There is only one word to distinguish between a saver and an investor. That word is leverage. Thanks to leverage, you have the ability to do more with less.

Many savers do not use financial leverage. And if you don’t have enough financial knowledge or experience to apply leverage, it would be better for you not to use it. I will explain this to you later. Let’s take a look at these standard recommendations from the perspective of the saver and then the investor.

Work Hard

When many people think of “work hard” advice, they only think about their own hard work. The leverage effect on one’s own hard work is very small. Imagine if others will help you to get rich with their hard work. This is the power of leverage. States do not ask us to seek jobs, but to create jobs. If everybody starts looking for work, economies will collapse. For economies to grow, we need people who can create jobs.

Save Money

The problem with saving money is that the current economic system needs borrowers, not savers, to grow. In order for our economic system to continue to grow, it needs smart borrowers. The system does not need people who get poor by borrowing, but people who can borrow money and get rich. While 10 percent of the people who borrow money in the world benefit from their debts to be rich, 90 percent of them become poor with their debts. And this ratio is getting worse every day.

Get Rid of Your Debt

Many savers think that debt is bad and it’s smart to pay off mortgage loans quickly. And for many people, borrowing is bad and getting rid of debt is wise. However, if you are willing to devote some time to your financial education, you can use your debt to move forward. But if you are considering investing with debt, I would like to warn you once again that you should invest in your financial education first.

There is good debt and bad debt. Being financially smart is knowing when to borrow and when to avoid it.

In these economic conditions, savers are losers and borrowers are winners. For whatever reason, you should always be careful when using borrowed money.

Make Long-Term Investments

Look at this advice in terms of sellers: “Give me your money to keep me for years, and I’ll get certain payments from you over the long term.” The phrase “make long-term investments” is like the advantages that allow you to earn points. You become a loyal customer.

Depending on the payments you make to manage the fund, mutual funds may not earn you as much money as other investments.

Diversify Diversify Diversify

Warren Buffet, considered the richest investor in the world, says this about diversification: “Diversification is a safeguard against ignorance. It won’t make much sense if you know what you’re doing. “

Then the question arises: Whose ignorance do you protect yourself from? Is it your own ignorance or the ignorance of your financial advisor?

Diversification generally means that you should not put all the eggs in the same basket. Warren Buffet puts them all in the same basket. He once said: “Put all your eggs in one basket, but watch your basket carefully.”

Personally, I prefer to focus rather than diversify, and actually the reason I was able to move forward was focus, not diversification.

I saw an acrostic on focus in a book I read.

For many, diversification is a good strategy. This is only because it protects investors from themselves and inadequate advisors.

The traditional financial planning advice “work hard, save money, get rid of your debts, make long-term investments and diversify” is good for the average. This advice is also good for those who are rich but are not interested in learning how to become an investor. Many movie stars, wealthy professionals, or former athletes do that. Just remember that while following this path, you will have a very small leverage.

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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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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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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 Two Most Important Skills to Increase Your Income

Whenever I talk to someone who wants to make more money, I always tell them the same thing: You have to think about your life in the long term. Instead of just working to earn money and secure their future, which is undeniably important, I tell them to find a second job that will allow them to learn a second skill. If what they want is to train themselves in sales, I often recommend them to work in a large networked marketing company, namely in the multi-level marketing field. Some such companies offer unique training programs to help people overcome the fear of disgrace and rejection, which is the primary reason people fail.

In the long run, education is worth more than money.

The reaction of those is usually, “Oh, but this is a lot of trouble.”. I ask them: So, is it better to give half of your lifetime earnings to the government?

And some of them say, “All I want is to do the job that interests me.”. I tell these people that I’m not interested in going to the gym, but I do, because I want to feel good and live longer.

There is unfortunately some truth to the saying, “You can’t teach an old dog new tricks”. If the person is not used to change, it is difficult for him to change.

Some people make excuses if you talk about trying to learn something new. They don’t like to struggle. However, life is like going to the gym. Everything gets easier once you walk through the door. I get lazy to go to the gym many times. But after I get there and start exercising, I enjoy it. Finally, I leave the gym thinking that I am glad I came.

Rather than specialize in something, diversify your abilities. Know little about a lot. And always try to work with people who are smarter than you.

How many of us can make burgers better than McDonald’s? I guess everyone would say they could do better. So, if we know how to make better burgers, how come McDonald’s make more money than us?

The answer is obvious: McDonald’s is excellent in business. The reason so many talented people are poor is that they give all their attention to making burgers and not to establish a business order.

The world is full of talented poor people. They either struggle with financial difficulties or earn less than they deserve. Because they focus on making better burgers rather than improving their burger selling and serving skills. McDonald’s doesn’t make the best burgers in the world. However, no one gets even close to McDonald’s when it comes to selling and serving an ordinary hamburger.

Do not let your field of expertise trap you.

I know teachers who make hundreds of thousands of dollars a year. The reason they earn so much is because they have skills other than skills in their field. Apart from teaching, they also know about sales and marketing. In my opinion, there is no more important skill than sales and marketing. Acquiring sales and marketing skills is the nightmare of many people who are afraid of rejection. The more successful they are to communicate, negotiate and overcome their fear of rejection, the easier sales and marketing will be for them.

Specialization has both advantages and disadvantages. I have friends of genius, but they are incapable of communicating properly with others, and as a result, their income is very low. If they take the time to learn how to sell, their communication skills will improve even if they don’t make any money in the process. This is invaluable.

We need to be good teachers as well as good students, salesmen, and marketers. In order to be really rich, we must know whether to give or receive.

The poor always say: “If I had some extra money, I would donate it.”. They work harder to earn more money. But they ignore the most important rule of money: “If you give it, you get it.“. They think the rule is, “If you get it, you give it.”.

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