This is the kind of post I like to write because I share my views of the world, opinion, politics, economy, society, religions, behavior and much more. I’d much rather write that than about profitability and dividends.
The patrimonial question serves more as a point of support, of registration, monitoring and to reflect on the results. What I think is that you have to have at least an idea of the post of the article, believe that many people have no idea or never stopped to think about it, living day after day without much wanting or calling or planning. I also found myself wondering if I would be happier in ignorance without knowing, without much concern, just like average Joe there, living her quiet life with her only wife and her three children in a simple house, without hunger and without stress.
Perhaps much reading or knowledge does not necessarily bring happiness or a good state of well-being. The complex and intense sophistication of mankind brings much suffering at times and not everyone is prepared to deal with the speed and intensity of the changes around us, and this is not even so desirable, we just can not pretend they do not exist or that we do not They suffocate us sometimes.
“Whoever, three millennia, is not able to realize, lives in ignorance, in the shadow, at the mercy of the days, of the time.”
I always liked Goethe (read Guiti). The guy talked a lot deep and simple. The subject of the post is this, it seems to be very complex, but you have to try to answer that, you have to understand the basics of the basic of the whole, of the gear, of how the world revolves, walks, works and behaves, People, institutional, political, financial and social relations. The subject of the post is more to the side of Finance, which already encompass almost everything, pity that the Finance theme is so little studied or misunderstood in its broader term. What is Finance anyway? All. Finance is everything.
So come on: How does the world work?
Let’s do it by steps. The ultra technological society and contemporary post work based on industry, oil, services and agriculture. The rest is basically a subset of that.
From the industry, we have the most important that is mining, iron, manganese, copper, tin, other metals and finally steel. Steel is king. Almost everything that surrounds you and that you use is steel. It is the steel that sustains the largest companies of production goods: cars, airplanes, trucks, civil construction, naval, military, electric and energy. Steel is an alloy composed of some metals like iron and manganese, where you see malls, bridges, viaducts, buildings and so on … I simply see steel.
Basically, we unearth the steel, process it and use it and goods, as a more practical example the car. It’s as if your car had been dug up, wasting a lot of energy, work, water and resources for it. The price of a ton of steel is currently around $ 945, how much did it cost you the ton of your car? A car basically is steel, glass, rubber, wires and foam for seats.
We work, we spend time and energy to unearth, process the steel and use it for our comfort. We dump our cars and we bury them in scraps and landfills, or we just throw them to the bottom of the sea (new fashion). We work to unearth our goods, little use them and quickly discard them again. Do you see much sense in this? I Do not. I do not feel happy to change my days to dig up steel and then bury it again. I do not think we were born to live our lives so in vain.
From agriculture and agribusiness we have wheat, corn, coffee, rubber, cotton, beef, pork, poultry (chicken, which eats corn, “chicken is a corn with wings”, milk and derivatives, Fruits and vegetables, which should be the largest and most important, including those traded on stock exchanges and derivatives, futures, etc.
I do not need to talk about oil a lot, a trillion dollar industry, which has already reached its apogee, its wars and is now stagnant and with a tendency to decline in the long run, basically serves to make gasoline, diesel, asphalt, aviation fuel, plastics And some other derivatives. ALL are being replaced by its original formula, we already have electric cars, solar, biodiesel, synthetic plastics and this is an endless trend.
Services basically have the financial sector (the financial sector is always one of the largest and most fucks in ALL the great and good economies). Look at this image from Credit Suisse’s 2015 report that I suggested you look at in the past post. The financial sector attracts the smartest minds in the world, the derivatives market has 85% of all the money in the world, real estate, stocks, bonds and anything else you can imagine. Finance, health, and consumer goods are among the top three. Look down there, in the blue bar, what weight the finance sector has in the economy. In emerging countries like Brazil gives almost 33% of the entire economy. Then LEARN. FINANCE IS A SUCCESS, and you have to know how to play this game otherwise, you will be REPRODUCED by financial and credit card operators and banks.
We also have education, health, leisure, gastronomy, tourism, justice, and security. We spend our time working for the working time of others. We work to pay others working for us. We earn X reais/hour to pay the hours of our teachers, firefighters, nannies, civil service, doctors, universities, etc etc … Here there is not much to talk about.
You have to do your best to:
1 Valuing your time (studying VERY, specializing, if ultra-specialized, learning, you have to have and add value to the market, repetitive tasks, just copy and work like a robot does not help, you have to CREATE SOMETHING, a product or service EXCELLENT, working better, getting promotions at work, earning in dollars, emigrating to win more)
2-Use the minimum possible time of others (teaching their children, cutting their hair, cooking for yourself, changing the car’s oil, washing your car, sewing their clothes, planting some foods, learning English alone, repairing your car , Your bike, doing gym at home, cleaning your house, washing your clothes, learn to do these things, it is easier than you imagine, make your table and chairs with wood, paint your pictures, make your art to decorate your Home, etc etc …) When you use others’ hours you cash your own, you exchange your life for others basically, when you go to a restaurant, you exchange some hours of your work for the hours of the cook and the waiter.
IF YOU CHANGE YOUR LIFE FOR OTHERS, YOU LOST YOUR LIFE! This is not a difficult concept to understand.
3-Work as much as possible in its physiological / family / social limit of hours. If you think you will get rich buying fixed income, equity or breaking the head to win 13 real more in comparing year real estate funds, YOU ARE ABSOLUTELY wrong. You have to MAKE MONEY WORKING.
(Money is earned by working and not investing).
And here are some reflections: Do you cut your hair for 15 reais or 100 reais? Does it make sense for you to earn 50 reais per hour and go to a beauty salon spend 300 reais in 3 hours? Honestly, my time is my edge. I do not feel at all comfortable paying someone an hour more expensive than mine. Of course, sometimes there is no way, for a doctor or dentist usually you will pay more. This is my limit. Also if I pay the same thing I’m at zero to zero. As long as you live and pay the hour that you earn you are nothing more than a modern slave. Calculate the value of your work time, divide your salary by your working hours and find the value. Write down and memorize this value. This will serve to make thousands of decisions.
Ex. You earn 50 reais per hour in your work, will buy a TV that costs $ 4000.00 divided into friendship in 10x of 400 reais WITHOUT INTEREST (of course you have built-in interest) = 80 hours of work to buy a piece of steel, Glass, and wires. Is it really worth it to you? Not for me. Value your work time, do not make a fool of yourself, do not become a free slave who thinks you have the power to make decisions when you do not actually have them.
Ex2 .: Car exchange. You have a car that suits you, it’s no problem, but it’s full of new cars on the street, friends are exchanging, everyone happy with a new car, you start to ask yourself “why do not I change mine too?” You work and “deserve” a new car. And there’s still that bizarre talk that “your car is already five years old, it has already devalued a lot, now it’s going to start to trouble …”
Are you talking about a car salesman like this? It’s totally ridiculous, made for you to turn equity, finance, store, car vendor, financial, and government crap. When someone comes to tell me something like it seems like they’re attaching a dentist’s drill in my ear, I have an intense agony of this kind of ignorant thinking, it’s an agony just like seeing someone scratching the frame with a fork. Speak serious, my friend. Are you asking me to bury ten thousand hours of my mud work to buy new steel and walk on a new motorized couch? SPEAKS SERIOUSLY!
I have no children, but let’s talk a little education, finance, schools, colleges and cost OPPORTUNITY. The other day a reader provoked me saying that I do not have children so I DO NOT HAVE TO TELL how to raise children, okay. I understood that, because you do not play hockey in the ice and do not know how to skate, nor have you ever entered an ice field, you can not tell if a hockey team is good or bad.
It turns out that Finance is a global issue, I do not care if I have a child or five children, I know that a single child of the Brazilian middle class costs on average 1 million reais until the age of 18, and that the brothers compete with each other Poor parental resources that also have to think about retiring, especially in Brazil where social security is a joke and the future is much more than uncertain, we are not in Norway, the equation is very simple, it is no use to run away:
MORE CHILDREN, WORST FOR YOUR RETIREMENT AND YOUR SPOUSE.
MORE CHILDREN, WORSE FOR THEIR OWN.
An only child can study in a private school, have a health plan, take English classes, play sports, wear better clothes, eat better, have better friends, live in a better house, play a musical instrument and exchange money, win a car at 18 Years and still study at a private college.
Two kids are getting a lot harder to do all this. The more, the worse for them and the whole world. You can romanticize as much as you want about family, love, the world, but the equation is just that.
About education itself that weighs heavily on a home’s budget, what do we have today? More and more schools and colleges that DO NOT PREPARE CHILDREN AND YOUNG PEOPLE FOR ABSOLUTELY NOTHING. The one who has a black who reaches the age of 25 with a diploma in hand, illiterate and deceived in colleges and colleges all life can not write. We stop forming people to the world to distribute degrees, that’s the truth. This not only in Brazil but also in the USA.
Graduates in letters, marketing, languages, arts and more a shitload of things like history and geography, just working at Starbucks in the supermarket, in trade, doing something NOTHING TO DO WITH THE COURSE OF IT. One of these days I saw a report from a lawyer with OAB and everything was selling candies, another one had become PROSTITUTE and so on.
Some parents simply put the child in the most expensive school thinking he will be saved because of it, DO NOT GO! Fatalism? I do not think so. I studied two years in an expensive school to finish my high school, with a 90% scholarship, I can tell you that there were a lot of people there that HAVE NOT SEEN RIGHT TODAY, how much? About 50%. You can write it down. Paying $ 2,000 monthly in a top school in your city is no guarantee of anything.
Maybe it would be better to put the $ 2,000 in Treasury Direct for 20 years and then hand over the whole cake in your son’s hand to him to start a business, or else depending on the cake you could only live on the same income. Want to learn a bit which means OPPORTUNITY COST? LOOK AT THIS IMAGE:
Let’s say you have a child and at the age of one year, you decide to buy Treasure Direct for him, R $ 2,000 per sacred month, earning 6% per year above inflation (and you can not even correct the 2,000 per month for inflation). So that way the age of 23 he could have a net worth of R $ 1,581,560 ( ONE MILLION FIVE HUNDRED AND EIGHTY-ONE THOUSAND).
That invested at 1% a month would give about 15 thousand reais a month. If you educate and this example pro your child as quiet and feasible to be frugal basically he could technically BE RETIRED the age of 23. At the same time that ALL his friends have just left colossal colleges to earn a salary of $ 1500.00 in the market.
Do you see logic in this? Of course, you would not talk to one grown man of 23 years stay quiet and playing video games for life, this amount of money just to see have a dimension of HOW EXPENSIVE EDUCATION FORMAL, and as LOW CAN BE RETURN. Of course, if he’s a college educator and a professional whore, a notary’s office owner, a hospital doctor will bill you more than that. But what are the chances of that happening? Very low. So it was refreshing to see how this part of the world works, expensive, costly kids with no return to them, frustrated, living with their parents, unable to meet the pattern of parents in stupid colleges with student loans Of FIES and horrible jobs awaiting them when they are kicked out of college. You could put her in a high school, do a homeschool to help, teach her English, pay some courses for her to learn to program, or technical courses, something useful, then simply spawn money in top schools in your city.
I just wanted to give an introduction to the subject, maybe I continue in other posts that same subject approaching in other ways. I think it could give a good introduction despite the long post. Next post I will talk about family, friends, dating, marriage and etc … If you got here, CONGRATULATIONS!