Tag: rich

investment, motivation

How Can You Prepare Yourself for Economic Changes and Your Retirement Days? Don’t Stuck In Case You Lose Your Job

by Enes Öner1 Comment on How Can You Prepare Yourself for Economic Changes and Your Retirement Days? Don’t Stuck In Case You Lose Your Job

I met a few people on social media recently. The lives of these people and what they do in one day seemed very interesting to me. Let me introduce two of these guys to you:

At first glance, these guys are firemen. So, they are public officials. They probably didn’t have any higher education. They only work two days a week. They have employment security, regular salaries and retirement plans. They also invest professionally three days a week. Their “side income” is quite high. These people have made great fortunes with their investments. Lastly, they can relax and spend time with their families two days a week.

One of these men buys old houses and rents them out. Currently, he owns forty-five houses with a monthly return of ten thousand dollars after paying debt installments, taxes, maintenance and repair costs, management and insurance expenses. His salary as a fireman is approximately 1200 dollars. He is five years into retirement and his goal is to increase his annual income to two hundred thousand dollars when he is 56 years old. Not bad for a public official with four children.

The other person does company analysis and deals with stocks and long-term transactions. Its current portfolio is over three million dollars. If he turns it into cash, he gets ten percent interest per year, which equates to three hundred thousand dollars. In all market conditions. But be sure his annual income is much more than that. Not bad for a public employee with two children.

Both of these men could have retired in their forties after twenty years of investment. But they chose to work and take advantage of retirement as public officials. Now, they have the advantage of operating in both areas, both as employees and investors.

I know many people who have a lot of money in their retirement accounts but don’t feel secure. They make up their retirement savings from the money they earn by working. Unfortunately, they know very little about investment. They wouldn’t know what to do if their savings melted away and their working life ended.

In times of major economic changes, wealth changes hands. Regardless of your economic situation, it’s important to invest in financial education. Because when time and conditions change, it is necessary to be prepared for the new situation. So you won’t be afraid. Although no one can see the future, it is good to take precautions and be prepared for all conditions. Therefore, it is necessary to start obtaining information as soon as possible.

Economic changes have already begun due to company sales and mergers. A businessman who recently sold his company had fifteen million dollars in his account, but those who worked with him had to look for new jobs. In such cases, anger is felt along with sadness at farewell parties. Employees realize that they make their bosses rich, not themselves, in return for years of hard work.

The truth is that bosses are not supposed to make their employees rich. Their responsibility in this regard is only to ensure that salaries are paid. Being rich depends on everyone’s own will and effort. What to do to become rich starts when the salary is received. If a person is not good at managing finance, he cannot continue to have wealth, even if he has all the money in the world. He eventually loses it all. The important thing is not to gain wealth and prosperity, but to sustain them.

If you can manage your money wisely, educate yourself about being an investor or a company owner. So, you are on your way to achieving personal wealth and financial freedom.

The difference between someone who is rich and can maintain it and someone who is not, is basically the way they use their money and leisure time.

Learning to invest and allocating time and budget for it saves much more free time and money in the long run. Do your best while at work, but also make sure you make efficient use of your wage and free time after work. It is not very wise to enrich others with your lifelong labor. If you make a commitment to work for yourself, you can achieve financial freedom in time.

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Financial Attitudes, investment, motivation

Earn More With Less

by Enes ÖnerLeave a Comment on Earn More With Less

The difference that separates a good investor from a bad investor is that the good investor can make more money with less money.

Leverages allow us to do more with less force.

The Key Is Leverage

People have sought to do more work with less labor since they lived in caves. When a child was old enough, he was taught to use a spear for hunting and defending himself. Spear has provided a great deal of convenience to human beings in their cruel environment. Over the years the spears have shrunk in size and the bow and arrow have been developed. This was a superior technology. Compared to a spear, the bow and arrow allowed people to do more with less.

As time progressed, man learned to tame horses. More distance could be taken on horseback in a shorter time and with less fatigue. It was an important convenience used not only in transportation and agriculture but also in wars.

When gunpowder was invented, the rulers who owned the cannons triumphed. Indigenous peoples such as the American Indians, the Hawaiian people, the Maoris of New Zealand, the Aborigines of Australia, and many other cultures lost to gunpowder.

Just a hundred years ago, cars and airplanes replaced horses. Once again, these new technologies have been used in wars and peacetime for some work. Telephone, radio, television, computer and internet networks all also enable people to do more with less. Actually, they are all levers. Each breakthrough new invention brings more power and wealth to those who have access to these tools.

If you want to be rich and not a victim of global changes, it is essential that you develop the leverage that is stronger than all others: Your mind. If you want to be rich and protect your wealth, your mind, your financial education, is your strongest lever.

You might say: “I don’t know anyone who can teach me finance. I haven’t heard of such an education. There is nothing to do.” Perhaps because of this mindset, your chances of reaching great wealth and, more importantly, protecting your potential wealth are extremely low. Your chances are low because you are using your most important asset, your mind, against yourself. You’re using your mind to find excuses instead of making money or finding solutions. Remember that your mind is your strongest lever. If you can’t control your mind, you can’t control your life. Excuses are easy to find. For this reason, unsuccessful people always have an excuse.

We Are All Born Rich

We are all born rich. Each of us has been given intelligence, the world’s most powerful lever. So instead of using our minds to make excuses, let’s use it as leverage to make us rich.

In summary, the difference between cavemen and monkeys is leverage. The difference between the rich, the poor, and the middle class is leverage. The difference between savers and investors is leverage. A well-educated and disciplined investor can achieve higher returns by taking much less risk and spending less money. But this requires leverage. And in order to have leverage it requires you to train yourself and use your mind wisely.

If you want to learn more about investing, you may read my YOU NEED TO SAVE MONEY post.

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investment, motivation

The Key To Being a Successful Investor

by Enes Öner3 Comments on 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.

If you think you need motivation, you can check out my posts in this category.

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Make Your Investments To Earn

by Enes Öner5 Comments on 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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Financial IQ, Understanding Money

The Biggest Financial Problem In The World Economy

by Enes Öner3 Comments on The Biggest Financial Problem In The World Economy

There are many definitions of intelligence. To me, the most practical definition is as follows: “Intelligence is the ability to solve problems.” If you can solve math problems at school, you are considered smart. Outside of school, if you can fix a car, it is assumed that you have automotive intelligence. When it comes to money, it is thought that the more you can solve bigger financial problems, the higher your financial intelligence is.

Today, the world is facing a number of serious financial problems. Many of these are linked, while some are independent problems. Some of the most urgent problems are:

  1. The fall in the value of the dollar
  2. Increase in national borrowings
  3. The exponential increase in personal debts
  4. Increase in oil prices
  5. The widening gap between the rich and the rest
  6. Salary drops
  7. Export of jobs and workers
  8. Melting of savings
  9. And the most important of all is the lack of financial education

The questions that need to be answered urgently are as follows:

  • What can we do?
  • What are the solutions?
  • Is our Financial IQ high enough to solve these problems?
  • How can we avoid being the victim of these problems?
  • How can we protect our families and loved ones suffering from these problems?

Many of today’s financial problems still exist because they were not resolved when they emerged. Unfortunately, instead of raising the Financial IQ of the population, people were taught to wait for the state to solve their personal financial problems.

“We need to look after those who can’t take care of themselves.” you might say. I agree with this. As a civilized society, we must care for the needy. However, many people may be able to take care of themselves if they are trained. For this, the Financial IQ of the societies should be increased.

Due to the low financial IQ solutions found in the past, the demographic structure of today is the impoverishment of the people except the rich; even though more people earn more money. Unfortunately, the United States is not the only country moving in this direction. Many of the world’s economies are transforming into two-class societies: The rich and the poor… The upper class or the masses…

Simply put, the world is on its way to becoming a well-educated place of rich and poor people. The middle class is endangered. The real problem is that the world is beginning to consist of people who are good people, well-educated, hardworking, but still expect the state to take care of them when they retire.

Apart from these, there are two other problems: The first is that even Ponzi Scheme is not known what it is, since nothing related to monetary matters is taught in schools. The second, most of the people now deserve to be paid because they have made all their retirement payments.

However, if each of these people in the US starts receiving only $ 1,000 per month under Social Security and Health Insurance, the government will have to allocate an additional $ 75 billion per month for salary payments. This amount is equivalent to the cost of Hurricane Katrina or the Iraq War. The good news is we still have time to prepare for the impending financial hurricanes.

You can feed a person for a day by giving fish. And this is what we have been doing as the world for a long time. This is the thought that underpins Social Security and Health Insurance Services.

I want to encourage you to get rich because the world is turning into a two-class society; only rich and poor.

The middle class in Western nations is slowly but surely disappearing. If you want to stay in the middle class, you may need to consider living in China or India. These two countries are making their middle class bigger, rather than destroying it. But keep in mind that middle class members in China or India generally don’t live a better life than many poor Americans. This is because the middle class is too crowded in these countries. 

The rich will always spot opportunities, while the poor will bury their heads in the sand and pretend nothing has happened.

Let’s think a little bit. Let’s consider how we can take advantage. 

Can you identify the opportunities that may arise from this economic order?

Let me know what you think in the comments below.

You can also read WHY YOU NEED TO INCREASE YOUR FINANCIAL IQ if you are interested in. In this post, I have outlined how to improve Financial Intelligence.

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Financial Attitudes, Taxation, Understanding Money

The Robin Hood Ideal

by Enes Öner4 Comments on The Robin Hood Ideal

“Why don’t the rich pay?”

“The rich should pay more taxes and help the poor.”

“The only reason the poor survive so hard are the rich.”

We often hear about the idea of taking from the rich and giving it to the poor. When I hear such sentences, I think of Robin Hood. Robin Hood may have passed away from this world hundreds of years ago, but those who followed in his footsteps are still alive.

The idea of taking from the rich and giving it to the poor most troubled the poor and middle class. The reason why the middle class is heavily taxed is actually the Robin Hood ideal. The harsh reality is that the rich are not taxed. The middle class helping the poor, especially high-income and educated ones.

For better understanding, we first need to look at the historical process.

There was no such thing as tax in Britain and America before. Temporary taxes were imposed to cover increased expenses during wars. In the past, the announcement was made by the king or the head of state and everyone was asked to put their hands in their pockets. The introduction of taxation in Britain took place between 1799 and 1816. During this period, Britain was fighting against Napoleon. In America, the first taxes were introduced during the Civil War period between 1861-1865.

In 1874, England turned income tax on its citizens into a permanent practice. The United States made the income tax application permanent in 1913 after the 16th constitutional amendment was approved. Americans used to be against taxation. The famous Tea Party in Boston Harbor contributed to the start of the War of Independence, and the reason was the excessive tax rates imposed on tea. In both England and the United States, it took fifty years for societies to adopt the regular income tax application.

These taxes were imposed to be collected only from the rich. The poor and middle class were told that taxes were levied only for the rich, so the idea of tax was popularized and imposed on the majority. Therefore, the masses voted “Yes” to the law and the tax was legalized. Although the main purpose was to punish the rich, in reality it was the people who voted for him, the poor and the middle class who were punished.

When we examine the history of taxes, we are faced with an interesting perspective. As stated above, the implementation of the tax system was made possible by the masses believing in Robin Hood economic theories, which argued that income should be taken from the rich and distributed to all. But the state loved money so much that it soon imposed taxes on the middle class, and taxes spread to the lowest class of society.

The rich took this situation as an opportunity. Because they play the game by different rules. Even in the time of sailing ships, they established insurance companies for goods carried on the voyage. The rich invested money in the company to cover travel expenses. The companies was hiring seafarers who would sail to the New World in search of treasure. Even if the ship sank during the voyage and the crew died, the loss of the rich was limited to the money they invested on that voyage.

Knowing the power of the company’s legal structure is what makes the rich superior to the poor and middle class. Thus, although the masses advocated “buy from the rich,” the rich sooner or later found a way to overcome them. That was why, the middle class was also taxed. The rich got what they wanted because they were aware of the power of money.

Companies and governments always protect the rich. But many people who have never started a company do not know that a company is really “nothing”. The company is almost a file containing some legal documents registered in the government office in the law firm. It is not a big building with its name on the top. It is neither a factory nor a community of persons. The company is nothing more than a legal document that creates a soulless legal personality.

As soon as the income tax was made permanent by law, the benefits of companies came back on the agenda. Because the income tax rate of companies is lower than the individual income tax rate. Thus, the wealth of the rich was once again preserved.

As a result, this war between those who have property and those who do not have been going on for hundreds of years. This is the “take from the rich” war of the crowds against the rich. Wherever and whenever laws are made, this war will be fought. It will take forever. The problem is that the uninformed ones are the losers. These are those who get up early every morning and go to work and pay taxes. If they understood the rules of the game the rich are playing, they could play better too. Then they could gain their financial independence.

Please let me know that what are you thinking about the taxes below.

I strongly recommend continuing to read with WHY YOU NEED TO INCREASE YOUR FINANCIAL IQ.

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“Lacking of Money” Fear

by Enes Öner4 Comments on “Lacking of Money” Fear

What exactly is our relationship with money? Do we really want to earn money to fulfill our desires or do we work so hard because of our fears? What is the effect of money on solving problems?

It is natural that we always want to have better and more. In this case, we see money as a tool to achieve our desires. We think that the more money we have, the more pleasure we can achieve. This is partially true. However, we forget that: The pleasant times we create thanks to money actually do not offer solutions to our problems in our lives. We only keep busy and entertain ourselves in the short term.

Moreover, in this case, we tend to want more and more: more enjoyment, more pleasure, more comfort, more prosperity, more security… This is what drives us to work “more”. We hope to soothe our souls by earning more. However, this calming never happens. This psychology can be found in everyone, from the poorest to the richest in the world.

In fact, many rich people get rich because of their fear, not their desire.

As the world’s population ages and more people move closer to retirement, fear is reported to be more about money. Fifty percent of those who were afraid, stated that they were afraid of running out of money in their “golden years”. These people continue to live in fear of lack of money in their daily lives. Millions of them even suffer from insomnia with anxiety disorders. They hope that working and earning relieves them of their worries, but the opposite happens. As they earn more, their fear of being broke grows. So, these people are trapped in a cycle. They are possessed by worries of lack of money. However, they don’t admit it. They try to believe they are getting better.

Believing that earning more will save them from fear of poverty, people start hoarding money. They aim to get richer when they are rich, stack more as they stack, and save more as they save. This is an absolutely unhealthy psychology. And, it gets worse and worse. The more they increase their work and earnings, the more their anxiety increases. They are afraid of losing all their savings. The decline in their standards, well-being, or socioeconomic status has become more frightening for them.

We can find this type of person all over the world. These people believe that they can solve all their problems simply by earning more. The main thing is to see the fallacy of this belief. Because actually not all problems can be solved with money nor wealth is enough for a good life.

Here we can talk more briefly about another group of people. “Money is none of my business.” those who say. This group is those who run away from money. However, they still cannot stop themselves from working. Because these people are not those who do not care about money, but those who deny the importance of money. In fact, this psychology can be worse than having a fear of lack of money.

So what to do?

Our emotions are what make us who we are. Our emotions make us real. We have to face our feelings. We shouldn’t suppress or ignore them. Instead, we must observe, explore, understand, and resolve our anxieties. If we know how to direct our emotions, we will make our lives more livable. Obviously, what shapes our thoughts is basically our emotions. Ultimately, we must learn to use our emotions and thoughts for our own benefit.

You can also read SEIZE THE POWER OF MONEY if you are interested in. 

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