Know Yourself First (Crucial)

Know Yourself First (Crucial)

von | Mrz 26, 2022 | Blog

Ok, I get it. There are many books out there about money, on financial planning or books that tell you how to think like a millionaire by changing your spending habits or investing in the stock market.

Many of them have solid advice, but I see it over and over again that they provide little effect, if you are not “ready” for them (that goes actually for any type of book).
What do I mean by that? (mehr …)

Crisis, Economy – How To?

Crisis, Economy – How To?

von | Mrz 9, 2022 | Blog

Cool thing: A reader pointed out, that the same day of my last post “The Principles of Money, Part 2”, Ray Dalio published a video („Principles for Dealing With the Chaning World Order“), where he, within the first minutes, also describes the „beginning of money“ (and how its value and trading ability was linked and determined to gold – and how it eventually ended). So let this small post be a quick insert and… (mehr …)

What You Need To Know About Money, Part 2

What You Need To Know About Money, Part 2

von | Mrz 2, 2022 | Blog

Brilliant Or Bold?

Welcome to Part 2 of Money Principles. If you haven’t read Part 1, I highly recommend to go back and do so because it sets the foundation to the following text.

Now, we ended Part 1 with the question of what possible flaw can open up if you are able to trade, in this case, your gold with the help of a receipt (which displays the value of your gold) – and eventually use this receipt as a payment? The amount of the gold stays the same and it could be picked up any day by the (new) owner of the receipt.

In our story it turned out that in reality only very few people picked up their gold and rather use their receipt as a payment and stayed with that convenience.
That meant that the depositories were now filled to the brim with gold. By the end of the day they reached a point where falling back to a place of an empty storage was almost out of a question. It was just too much gold and too few people who picked it up on a regular basis.

Now the brilliant idea by the owners of the depository: (mehr …)

What You Need To Know About Money: Part 1

What You Need To Know About Money: Part 1

von | Jan 9, 2022 | Blog

A Shell Game

A man walks into a car dealership and wants to buy a car. After choosing a suitable one, he would like to take it for a test drive first. So besides his data, he leaves an additional $500 security deposit to the car seller and takes the keys. The $500 should also be a down payment if he decides to buy the car directly after the test drive.

While the customer is driving the car, the car salesman, confident that the car will be sold, goes to the nearby TV shop and pays his remaining debt of $500 for the flat-screen TV he purchased just yesterday.

The minute the car salesman leaves, the TV salesman gives the $500 to his best friend who happens to be in the shop as well, the No. 1 respected roofer in town who recently made some repairs to the roof of the TV salesman.

However, since the roofer had to buy a trailer (for $500) from the car salesman to transport all the needed material, he in turn goes right next door to the car dealership and pays his $500 bill to the car salesman (who could swear he just saw the roofer in the TV store).

Ten minutes later our first friend comes back from the test drive and explains that unfortunately he doesn’t want to buy the car after all. The car salesman gives him the $500 deposit back and the man leaves in his own car.

Conclusion: All debts are paid, no one has the money (but a new TV, a new trailer, and a new roof).

(mehr …)