The goal of any investor is to find the most promising companies in the most promising industries.
Learning how to invest is absolutely essential to your survival and financial condition. in most countries, on a good year inflation is at 2%.
Now most people hear about inflation but don't actually understand what that means in terms of thier lives. Lets create an example.
Lets say your 25 years old, Working as an IT manager a company. Your making around £100,000 per year before tax. You've made some good decisions and are in a stable and secure job. Lets say you stay loyal to your company and never ask for a pay raise or get another promotion you stay complacent in your job, Which if your making a good amount of money may not be a bad thing.
Inflation affects your spending power, meaning how much you can buy with a certain amount of money. The easiest example of this lets say in 2020 you want to see how many loafs of bread you can buy for £1,000, and lets say for the sake of simplicity you can buy 1,000 loafs of bread for £1,000. Lets say over 10 years with an inflation rate of 2% on average (monthly) now you can only buy less than 100. Thats the effect of inflation.
(And this is true. If we use real world numbers. in the early 2000's in the UK a load of bread was 52p in September in 2000 and in September 2009 less than 10 years later it was £.122 more than double) here is the data: https://www.ons.gov.uk/economy/inflationandpriceindices/timeseries/czoh/mm23
Now lets say go back to our original example. In the UK as of this writing if your making around £100,000 pre-tax, After tax your earned income is £60,000 per year... Not bad. Now your spending power would be £60,000 meaning that you'd be able to buy £60,000 worth of products or spend that much on services. Now lets add inflation and time into the mix. Inflation is a compounding factor. Meaning each week, each month and each year your spending power decreases. If you become complacent and don't find other means of increasing your income in 40 years that £60,000 spending power becomes £27,174. If you're lucky and planned for the future maybe one day you'll retire if not you'll be forced to work until you drop dead or are no longer able to.
To keep up with inflation your income needs to increase atleast by 22% every 10 years which in most career paths that doesn't happen
If your living paycheck to paycheck (Which even alot of high earners are doing) in 10 years your £60,000 you'll need to make £71,000 to maintain your current standard of living or £120,000 after tax.
And here we have the basics of the rat race. The rat race could be defined as the effort of the average person to increase their income faster than the inflationary pressures of capitalist societies.
On top of that 60% of high income earners ($50,000-$100,00) in the US (The richest country in all of human history thus far) are living paycheck to paycheck meaning that if even on $100,000 (or about £80,000) living in an advanced economy you still might be struggling to get by.
This is part of the reason why the 40 year career doesn't really work anymore. Most careers have an income ceiling and if you stay complacent for too long you'll become trapped, why ?
Because if you want to move to a new house and your income stays the same, you'll only be able to get a lower quality abode than what you live in currently because the price of rent has gone up, you want to keep buying the groceries you like eventually you'll have to pick and choose between what you like and what you can get because the prices are going up but you disposable income isn't, You want to buy a new car but the price of your insurance has gone up, Year on year the price of your petrol is going up.
I hope you get the idea.
the only way to actually beat inflation (As an individual) is to:
start and build successful business
invest or trade in businesses, currencies or other assets
Build a following and monetize or sell to your following; Become a celebrity or influencer or promoter
All of the above
Bare in mind we've been using figures for high earners making £100,000. Chances are you are probably closer to an average earner which in the U.K around £32,000.
In terms of personal economics, Complacency = death. You income needs to always be increasing, Year on Year, Decade on decade or else one day you'll wake up with all those things you use to be able to enjoy out of reach because you don't have enough money to buy them.
This is why you need to learn how to invest. Successful investing is one of the few viable pathways left for the average person to acquire and build wealth. By utilising prop firms you can gain 100,000s of thousands of dollars or even millions to invest into the financial markets.
You no longer have to save back £300 pounds a month to put into an index fund and make 10% a year. You can take that £300 per month and with a knowledge and understanding of how to invest, Apply for a prop firm challenge, pass it and be investing on behalf of a company with $1,000,000 in assets. Make 10% on that, You'll see the difference in your life and its almost infinitely scalable. With knowledge, experience and a track record you'll be able to court investors into investing in you and be investing money on behalf of others.
An individual with no college or university education but with a little initative, education, perseverance and a willingness to learn, grow, develop and take responsibility can beat the rat race and come out on top.
Our Job is to help you do that.
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