Wednesday, November 6, 2024
Tuesday, July 9, 2024
Tuesday, July 18, 2023
Asset vs Liability: A short story
Son: Dad, may I speak with you?
Dad: Go ahead.
Son: Among all my classmates, I am the only one without a car. It is embarrassing.
Dad: What do you want me to do?
Son: I need a car. I don't want to feel odd.
Dad: Do you have a particular car in mind?
Son: Yes dad (smiling)
Dad: How much?
Son: N2,000,000
Dad: I will give you the money on one condition.
Son: What is the condition?
Dad: You will not use the money to buy a car but invest it. If you make enough profit from the investment, you can go ahead and buy the car.
Son: Deal.
Then, the father gave him a cheque of N2,000,000. The son cashed the cheque and invested it in obedience to the verbal agreement that he had with his father.
Some months later, the father asked the son how he was faring. The son responded that his business was improving. The father left him.
After some months again, the father asked him about his business
again and the son told him that he is making a lot of profit from the business.
When it was exactly a year after he gave him the money, the father asked him to show him how far the business has gone. The son readily agreed and the following discussion took place:
Dad: From this I can see that you have made a lot of money.
Son: Yes dad.
Dad: Do you still remember our agreement?
Son: Yes
Dad: What is it?
Son: We agreed that I should invest the money and buy the car from the profit.
Dad: Why have you not bought the car?
Son: I don't need the car again. I want to invest more.
Dad: Good. You have learnt the lessons that I wanted to teach you.
- You didn't really need the car, you just wanted to feel among. That would have placed extra financial obligations on you. It wasn't an asset then; but a liability.
- Two, it is very important for you to invest in your future before living like a king.
Son: Thanks dad.
Then the father gave him the key of the latest model of that car.
MORALS:
1. Always invest first before you start living the way you want.
2. What you see as a need now may become a want if you can take a little time to get over your feelings.
3. Try to be able to distinguish between an asset and a liability so that what you see as an asset today will not become a liability to you tomorrow.
Source :- Facebook
Friday, June 17, 2022
A tendency to adjust to current circumstances in a way that makes forecasting your future desires and actions difficult, resulting in the inability to capture long-term compounding rewards that come from current decisions.
Every five-year-old boy wants to drive a tractor when they grow up. Then you grow up and realize that driving a tractor maybe isn’t the best career. So as a teenager you dream of being a lawyer. Then you realize that lawyers work so hard they rarely see their families. So then you become a stay-at-home parent. Then at age 70 you realize you should have saved more money for retirement.
Things change. And it’s hard to make long-term decisions when your view of what you’ll want in the future is so liable to shift.
This gets back to the first rule of compounding: Never interrupt it unnecessarily. But how do you not interrupt a money plan – careers, investments, spending, budgeting, whatever – when your life plans change? It’s hard. Part of the reason people like Grace Groner and Warren Buffett become so successful is because they kept doing the same thing for decades on end, letting compounding run wild. But many of us evolve so much over a lifetime that we don’t want to keep doing the same thing for decades on end. Or anything close to it. So rather than one 80-something-year lifespan, our money has perhaps four distinct 20-year blocks. Compounding doesn’t work as well in that situation.
There is no solution to this. But one thing I’ve learned that may help is coming back to balance and room for error. Too much devotion to one goal, one path, one outcome, is asking for regret when you’re so susceptible to change.
Monday, October 18, 2021
Wednesday, October 13, 2021
https://trendblog.net/make-money-with-blockchain/
Top Ways to Make Money with Blockchain in 2022
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Thursday, October 7, 2021
https://blogs.imf.org/2021/10/01/crypto-boom-poses-new-challenges-to-financial-stability/
Crypto Boom Poses New Challenges to Financial Stability
The Crypto Ecosystem—What Is It, What’s at Risk?
The total market value of all the crypto assets surpassed $2 trillion as of September 2021—a 10-fold increase since early 2020. An entire ecosystem is also flourishing, replete with exchanges, wallets, miners, and stablecoin issuers.
Many of these entities lack strong operational, governance, and risk practices. Crypto exchanges, for instance, have faced significant disruptions during periods of market turbulence. There are also several high-profile cases of hacking-related thefts of customer funds. So far, these incidents have not had a significant impact on financial stability. However, as crypto assets become more mainstream, their importance in terms of potential implications for the wider economy is set to increase.
Saturday, October 2, 2021
El Salvador is successfully mining bitcoin from volcanic energy. It’s not the first country to do so, but it is the first country to make bitcoin legal tender, and that’s why this is critical for the crypto community.https://www.ntd.com/el-salvador-uses-volcanoes-to-mine-bitcoin_683635.html
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