Turkish Delight getting far from sight

 If you are from this planet you must be aware of Turkish Delight(TD), if not

google it order it and enjoy it. 

Now while enjoying TD have a look on these headlines : 

"Turkish inflation surges to highest level since 2002"

"Turkey Reports 36 Percent Inflation Rate, Food Prices Rise by 43 Percent Compared to 2020"

In simple terms Inflation is a phenomenon which makes things costly from hair pin to flight tickets. One major reason for this is excess of cheap money in economic system.

Today all the Central banks( like Federal Reserve) around the world have printed hell lot of money to support their economy.

But you know "Anything in excess is bad for health". So the excessive printing of money has caused overflow of money in the economic system which has kind of similar effect when you consume lot of ,too much, very much chocolates.

Now you must have understood what Inflation is and what it can do? 

When you look at what's happening in Turkey while enjoying Turkish Delight

Let me present some not so good facts about inflation.

As the news article above said inflation in food items rise upto 43% what this means is - 

The TD which cost 100 Lira/box( Turkish currency) earlier now costs 143 Lira/box.

Take the case of your iPhone instead if it were a food item 1000$ iPhone would now cost 1430$ just because there is enough money in the economic system.

Did you get any of the excessive printed money in your bank account? I guess no. But still you are the miserable.

The lesson is we are all connected to whatever goes on around the world. We need to find ways to growth our wealth and beat the beast called Inflation. 

If you keep your money with the bank it will give you say a 5% return annually so your 1000$ becomes 1050$ only but your iPhone costs 1430$.

Therefore save before you spend and invest the saving in instruments(real estate, stock markets, gold, index funds) which you understand. Getting wealthy takes time but is a definite path.

When you become financially independent do visit Turkey and enjoy Turkish Delight it is a beautiful place to visit.

Simple ways to create wealth

 Hey folks , 

The simple law governing wealth creation is "START EARLY AND KEEP MOVING".

You may go and ask any of your favourite sportstar few questions - 

    Did he master his game overnight?

     When did he start practice?

     How many hours did he practice?

     What sacrifices he had to make to become for which you admire him?

The list can go on and on but this will give you a fair idea that he must have started early in his childhood to master the art.

Suppose he becomes world champion at the age of 25 and started playing since he was 5 years of age, which means 20 years of hardwork is behind his success.

Let me correct myself "20 years of consistent and focused hardwork".

This consistent effort for a long period of time is nothing but COMPOUNDING.

Investing also works on the same pinciples- 

  Starting early 

  Keep learning and 

   Being focused and aware of your surroundings.

Please do not confuse wealth with money its more than that.

Wealth includes your family , friends , relation, Health , mental well being and at last money.

If you notice your favourite player has a skill that is his sport. He has spent 20 years mastering it. He may not be the brightest student of his class but everyone knows him/her.

Similarly you need to start and master a skill to become great. You need to be passionate, focused, must have sense of responsibility towards your goal.

Always aim big.

Same thing works in investing world. You have to start early and remain invested and allow the compounding engine start.

Compounding engine here means growing your money. It starts slowly initially you wont see any difference. Understand it with this - Why did your favourite player take 20 years to become champion?

Yes , you got it because his efforts were compounding and it takes time when started but becomes very big if you maintain consistency.

You Are An Asset!

Who am I ?

Sitting on your couch binging on your favourite show seeing the protagonist(hero) perform tasks which you could hardly imitate have you ever come across this life changing question - who am i ?

If yes then let me congratulate you for you hav started your journey of transformation.

I can also see that you are in a good company of people.

What if this life changing stuff has not happened to me?

This means that you are really enjoying your life and dont have enough time to sit down and interact with yourself.

As we have gathered here to talk about financials, wealth, money so lets leave aside Philosophical preaching.

You are an Asset

Asset you are into which investmens are being made.

You would say that in the last session I said investments are made into piece of land , ounce of gold.

But for your family , society and country you are that piece of land and ounce of gold.

You will be turned into a brick of gold from an ounce when there is a rise in your value because of your own hardwork.

Your parents send you to school they invest in you their time, energy, and of course money. 

So aren't you an investment ?

But above all you are dear to them. They look upto you for you will be their support when time comes.

How is it being an Asset?

It's a proud moment for you if someone considers you an asset and is willing to invest their energy in you.

It's a matter of responsibility. You gotta prove yourself everytime you are put to a test.

As Uncle Ben used to say - with great power comes great responsibility.

 

What if an asset does not perfom as expected?

It's a tough question but as it has come from you lets look at various possibilities .

Suppose you buy gold and it is giving you 4% return on your investment whereas one of your banks is giving 6% so what would you do?

Yes ,you will switch from  poorly performing asset class to the one doing well in comparison to the other.

Now that we know you are also an asset what if you dont perform as expected?

Well dont worry your parents wont swap you with the most brightest student in your class.

Even Nobita's parents can't think of doing this.

They will try to find out the reason for you not performing upto their expectations.

They will get you counselled atmost.

I am not doubting your effort , lets believe that you put all your effort in but still could not match the expectations.

Exactly you almost got there 

its mostly the expectations which have made your investors believe that you did not perform well.

But we know that you did your best.

Can we compare 2 different assets?

Generally we should avoid doing this sin and must not compare Nobita with Dekisugi.

One does what it does. 

Performance of gold as an asset class depends on various external factors like demand and supply.

These factors dont make it a bad asset its just it could not outperform the other because of some unforseen and uncontrollable events.

So when ever you are going to invest in any asset you will always look for all the factors internal as well as external which can affect its performance.

 And please dont compare two different assets and dont invest in an asset because it's doing well.

Your parents and teachers dont lose faith in you when you under perform.

What should I do?

You must start investing in yourself because you know you are an asset and you gotta raise your value.

P.S - Would love to read your comments.

Genie ,where are you?

 Hello 

Its good to see that you are in no mood to let the wishmaster slip away.

So without wasting any more time let's figure out where to start from.

What strikes your mind when you hear the word GEINE ?

I know you will say a magical lamp and a strange foolish blueish gigantic creature which appears from that lamp when rubbed.

Our Geine willhelp be different it will generate something that has value and using which you can fulfill all of your wishes.

All of my wishes are you serious?

Well sorry to break your heart not all but almost all. I consider you old enough to understand the difference between need and greed.

Though it can fulfill all your materialistic wishes like a superfast sports car , a superbike , an Island if you want but it certainly cant provide you with the joy which you experience when you are with your family, friends and close one's.

I hope you would agree.

Come to the point and tell me about that something which has value...

Sure, that something is nothing but money. This is why you are going to school and then will go to college and after getting a degree you will look for a suitable job and will earn to fulfill your dreams.

Your plan is to earn and enjoy but life is seldom what you want it to be.

 There will be some accidental events which you would have never thought of .

Lets assume a hypothetical situation : You have completed your college and landed in your dream job and today you were going to book your favourite Tesla car but suddenly you get a phone call and on the other side a fumbling voice of your mother who can hardly speak that your dad has been hospitalised. The doctors ask you to pay the bills and you have to postpone the idea of purchasing that car.

You will say no problem I will buy it later.

There can be many other scenarios such as -

The company which you are working for may go bankrupt or you may lose your job due to unseen situations like Covid-19.

Let alone the idea of purchasing a car you will think twice before recharging your phone. 

 The situation can get more scary.

Let's leave all this negativity here itself and move ahead becuase stopping and thinking for things to go right on there own is not your style.  You are a fighter.

Have you ever been to a bank with your dad?

Yes many a times you say. The bank keeps your money safe in an account in the name of your old man and is generally called Savings.

A bank is a place where you are introduced to a Financial system.

You must have also seen your father put some money in certain other areas like buying a piece of land or an ounce of gold.

In Financial terms these are called INVESTMENTS.

Geine has arrived!

Yes by now you would have figured out that the instruments in which you invest is the Geine.

The piece of land or the ounce of gold which you invested in yesterday will rise in value tomorrow.

Remember I told you the Geine grows its power but with time.

I am happy that you have taken small steps in the right direction which will have very big impact in your life.

Investment is the magical word which I wanted you to be familiar with today.

Good bye for now.

Wish I had a Doraemon too!

 Has this thought ever crossed your mind to have Doraemon behind (or maybe next to you 😊)?

What a fool I am to not wish you its your birthday and you just turned 15!

Well, apologies and Happy Birthday!!🎂

As it is your b'day you would be expecting some gifts as well from friends and family.

Party begins!

You enjoy , collect gifts and .....what?

Party cant go on endlessly, its good bye time. 

You are sad to see your friends go but you are exicted because you want to see what's in the gifts.

There are many gifts but not the one which could make you jump off the floor.

That gift could be anything which you desire the most .

Papa this birthday i want a........

Let's assume it to be a latest PlayStation or an iPhone.

Your father tries to give you the best but it is not always possible for him to fulfill all your wishes as he has to look after a lot of things.

 The best thing is that you know this and  understand the constriants.

You wish you had a Genie or a Doraemon

One  who could make anything possible. He took you to the Disney land or got you into space ,anything that you could think of.

Dont fool me Genies dont exist😤

What if I tell you they do and you can have one of your own?

Do you have it in you what it takes to create your own Genie?

I am sure the answer is yes because you are a believer and a doer.

Let's try to get a Genie for you!

Before that answer one simple question or maybe two - 

What does your father work for?

What does your teacher get for her service (except respect from you)?

What does the vegetable vendor take? 

et cetera.

Yes , your guess is correct MONEY($$) so that they can fulfill the needs of their families , pay the bills, spend on improving your living standard ......it's an endless list.

So what do we conclude from this - The income is limited while expenses are limitless.

Someone told me that you wanted an iPhone but didnt ask for it because you didnt want your dad to feel bad for not being able to fulfill your wish.

As it takes 5 years for a sapling to grow into a tree and start giving Mangoes.

Similarly it requires quite a bit of time for your Genie to develop its magic and fulfill your wishes.

And I must tell you its powers keep on increasing with time though it may require to rest ,after all it deserves this.

It's 1:30am in the night now I must goto sleep else I will miss my class.

In the next session will be meeting the man of your dreams. Till then 

Good Night.