Untitled notebook

The transcription discusses a workbook on personal finance called "Intensive Vermogen's Check." It emphasizes the importance of diversifying one's investments and managing the risk of inflation. The workbook criticizes blindly trusting financial experts, the lack of financial education in schools, and raises questions about the potential impact of global economic shifts. While it acknowledges the uncertainty and overwhelming nature of financial planning, it offers practical solutions such as building a diversified portfolio across different asset classes. The workbook emphasizes the need to manage risk and not solely rely on past performance when making investment decisions. Hey everyone, welcome to your personal deep dive for this week. We're going to jump right into it. It's September 26th, 2024. So yeah, we're already pretty far into the year, but no better time than the present to, uh, get our finances in order. Right. I like your thinking. Couldn't agree more. So today we're diving into something really interesting, at least on the surface. We're cracking open a workbook. Okay. A workbook, like a school workbook. Well, not exactly. This one's all about personal finance and it claims to have the secrets to, well, wealth, like specifically tailored for you, me, everyone listening. Ah, the elusive secrets to wealth, always an intriguing topic. So tell me more about this workbook. Does it live up to the hype? Well, let's just say it doesn't beat around the bush. It's called, and get ready for this, intensive Vermogen's check, which translates to like intensive asset check. Okay. So right off the bat, it sounds pretty, uh, intense. I'm intrigued, but also a little intimidated. What's the first thing they throw at you? Well, after a very official looking title page and copyright info, which, you know, got to cover the legal stuff on pages one and two, we hit page three. Table of contents. All right. Table of contents. Always a good place to start. What kind of juicy chapter titles are we talking about? Oh, you know, the usual suspects, my current monetary values, the ever so slightly terrifying, how much do I lose if I don't do anything? And my personal favorite problems in the system. Ooh, getting a little spicy there. It definitely seems like they're trying to create a sense of urgency. Wouldn't you say? Oh, absolutely. And they double down on that feeling on page two, right after the title, bam, they hit you with this statement. The solution does not lie in one currency, but in a well-positioned solid portfolio with tangible assets. Interesting. So diversification is key according to this workbook. Exactly. Don't put all your eggs in one basket, right? But they don't just tell you that. Oh no. On pages four and five, they throw you right into the deep end with this intensive asset check activity. You know, the kind of stuff that makes you confront your current financial reality. The good old, where are you really at? Yeah. Moment. Always a bit daunting, but hey, awareness is the first step. Right. And speaking of awareness, I don't let you off easy. We turned to page six and guess what's staring us in the face? Inflation. Ah, yes. The silent wealth killer. It's something that we all know we should probably think about more, but. Yeah, but it's easy to overlook, right? This workbook though, they're not letting us forget about it. They even linked a statistic showing that Germany's had like persistent inflation since 1992. Okay. Now that's a sobering thought. It really highlights how inflation is a long game, not just a blip on the radar. Right. And to drive that point home hard, they give this real world example on page seven. Remember back in 1950, when a liter of gas was just 28 cents, 28 cents. That's practically unheard of these days. Exactly. Well, fast forward to 2023, that same liter of gas will set you back a whopping 180 cents. Wow. Talk about a price hike. That's what? Over a 600% increase. Yeah, it's crazy. It makes you think if your money's not growing, at least at the rate of inflation, are you even really breaking even? It's like running on a downward moving escalator. You're working hard just to stay in the same place. Many people focus solely on the numbers in their accounts without considering the silent erosion caused by inflation. Absolutely. It's a blind spot for so many of us. It's a really good point, right? About inflation. It's like this hidden thing that just kind of sneaks up on you, but okay. So we've established that inflation is a problem and this workbook wants us to be ready. But where does it go from there? Well, on page eight, things take a bit of a bit of a dramatic turn. You could say. Oh, how so? Well, it jumps right into this whole section called problems in the system. And we're talking like a solid chunk of the workbook here from pages nine to 16. It's like the workbook is saying, okay, enough with the basics. Let's get real. Okay. I'm kind of nervous now. What kind of problems are we talking about here? Give me the rundown. So we've got problem one, trusting experts. Okay. That's pretty broad, but I can see where they're going with that. Right. Then we move on to problem two, ignorance, which that's a little blunt, but Hey, maybe they have a point. And then to top it all off, problem three, brave new world. Okay. We're getting into conspiracy theory territory now. It definitely has that vibe, doesn't it? But let's not jump to conclusions. Okay. Fair enough. So walk me through it. What's the deal with trusting experts? What do they say on page nine? Well, they get specific here, which I appreciate. They bring up this whole scandal with Alliance, you know, the insurance giant. That was big news. They admitted to defrauding investors, right? Exactly. And this workbook uses that as like a prime example of why we can't just blindly trust financial experts. Okay. So point taken, don't just hand over your life savings without doing your homework. Right. Exactly. And then on page 10, they quote the Bundeswehr, the BDD, which is like a German consumer protection group for insurance, and they do not hold back. What do they say? They straight up call life insurance, a legal scam. Oh, wow. Strong words. Right. They're basically saying that a lot of these products, they've benefit the insurer more than the person who buys the insurance. They even filed a lawsuit over it, I think. Wow. So they're putting their money where their mouth is, so to speak. Exactly. So yeah, the workbook really makes you question those guaranteed return promises. Yeah, for sure. Like who can you trust these days? Okay. So we've covered trusting experts or maybe not trusting them. What about problem two? Ignorance. That one feels a little personal, doesn't it? A little bit. But their point on page 12 is more about the education system. They're basically saying that traditional schools, they don't really prepare us to manage our money. And they're not wrong, are they? No. I mean, think about it. What we learn, algebra, history, all these subjects. But how many of us were actually taught how to create a budget? Or understand how interest rates work. Right. Like they just throw us out into the world and expect us to figure it out. And then we end up making all these financial mistakes because we didn't even know what we didn't know. It's a recipe for disaster. Exactly. And that lack of financial literacy, it keeps people trapped. You know, it perpetuates this cycle of debt and poor financial decisions, it's kind of a big deal. Okay. So we've got trusting experts and ignorance. Those are pretty big issues on their own, but I'm almost afraid to ask, what about Brave New World? What's the workbooks take there? Well, on page 14, they kind of, how do I put this? They dive headfirst into this whole World Economic Forum, Great Reset thing. Okay. Yeah. That's definitely where things start to feel a little, well, conspiracy theory-ish. A little bit. I mean, the World Economic Forum does have this initiative called the Great Reset, but there are like a lot of different interpretations of what it actually means. Right. And we're not here to endorse any specific viewpoint. Definitely not. But I think the workbook raises an interesting question. Even if we don't buy into, you know, the most extreme claims, are there shifts happening in the global economy that could impact our finances, like for real? That's the million dollar question, isn't it? It's like, how do we even begin to prepare for an uncertain future? Luckily, that seems to be what this workbook tries to address next. It really makes you think, doesn't it? Like we've talked about inflation. We've talked about these big problems in the system, all this uncertainty swirling around. It can feel kind of overwhelming, you know? It definitely can be a lot to process. So what do we do about it? That's got to be the big question, right? Does this workbook actually offer any solutions? It does, actually. And thankfully, it gets a lot more practical from here on out. On page 17, it dives into this whole idea of building a portfolio. Okay. A portfolio. I feel like that's the word you hear a lot, but what does it actually mean in this context? So it's basically about not putting all your eggs in one basket, financially speaking. Instead of just relying on, say, a savings account, you're diversifying your money across different types of investments. They call them asset classes. Asset classes. Right. Okay. So like stocks, bonds, that kind of thing. Exactly. They mentioned stocks, precious metals, gold, silver, even things like cryptocurrencies, collectibles, and of course, good old cash. Oh boy. So many options. It's a bit overwhelming. To be honest, when I first started learning about investing, it was like trying to learn a whole new language. Tell me about it. It can definitely feel that way. There's a lot of jargon, a lot of different strategies, but I think the key takeaway here, the thing the workbook really hammers home is diversification. Don't put all your eggs in one basket. Right. We talked about that earlier. Exactly. It's about managing risk. If one investment isn't performing well, others might be. That's like having a safety net. But, and this is a big but, past performance doesn't guarantee future results, just because something has done well before doesn't mean it always will. That's so true. I think a lot of people, myself included, can get caught up in the hype, you know, like you see something skyrocketing in value and you think, oh, I got to get in on that, but it doesn't always work out that way. Exactly. FOMO fear of missing out can be a powerful motivator, but it can also lead to some pretty bad decisions. That's why on page 18, the workbook emphasizes the importance of having a strategy. It's not just about what you invest in. It's about why you're investing in it. So like having a plan, knowing your goals. Exactly. It's like mapping out a road trip. You wouldn't just start driving without knowing where you wanted to go, right? Yeah. You need a destination and you need a route to get there. Makes sense. So we've got our portfolio, we've got our strategy, but let's be real. We're all human. We make mistakes. What are some common pitfalls that this workbook warns about? Oh, they have a whole section on that. Pages 21 and 22. Hit me with it. Okay. So they talk about the dangers of overconfidence. Thinking you know more than you do, getting in over your head. Yeah. That's a recipe for disaster. Right. They also emphasize the importance of, well, actually having a plan. Sounds obvious, but a lot of people just kind of wing it. And then there's the whole short-term thinking trap. Chasing those quick wins instead of thinking long-term. Exactly. They warn about letting emotions drive your decisions, like selling everything in a panic when the market dips. Oh, or buying into something just because everyone else is talking about it. Like, oh, my neighbor's cousin met a fortune on this. I got to get in on it. Classic FOMO. And my personal favorite, investing in things you don't understand. It's so tempting to jump on the latest trend, but if you don't actually know what you're buying. You're basically just gambling with your money. Exactly. Now here's where the workbook takes an interesting turn. They shift from these external factors like the market, the economy, to internal roadblocks. Internal roadblocks. Okay. I'm intrigued. Tell me more. They argue that some of the biggest obstacles to building wealth are actually psychological. Ah, so it's not just about the numbers. It's about our mindset. Exactly. Starting on page 23, they dive into the fear of failure. Oh, I think we all struggle with that one to some extent. For sure. It's natural to be afraid of making mistakes, especially when it comes to our money. Especially with all these problems in the system we talked about earlier. Like who wouldn't be a little afraid? Right. But as the workbook points out, inaction can be just as risky as making the wrong move. So it's about finding that balance. Right. Between being cautious and being paralyzed by fear. Exactly. And then they move on to the big ego on page 25. The big ego. That sounds kind of harsh. It's not about being arrogant, really. It's more about how our upbringing and our beliefs about money can sometimes sabotage our financial growth. Like if we equate our self-worth with our net worth, that can lead to some pretty unhealthy financial decisions. Keeping up with the jumps is trying to impress people. Exactly. It's a recipe for overspending, debt, all sorts of problems. And then finally on page 26, they talk about not letting go. Okay. I think I need an example for this one. What does not letting go look like in a financial sense? It could be anything from clinging to a job you hate because it's safe. To staying stuck in a rut with your finances. Because change feels scary. It's about getting too comfortable, even if that comfort isn't really serving you. It's like staying in a relationship that's run its course just because it's familiar. It doesn't mean it's good for you. Exactly. So the workbook challenges us to ask ourselves, what price are we willing to pay for the financial future we desire? Are we willing to let go of old habits, old beliefs, even if it feels uncomfortable? That's a really powerful question. And it kind of ties everything together, doesn't it? Like it's not just about the numbers. It's about our mindset, our habits, our beliefs about money. Absolutely. It's about taking control of our financial destiny, not letting fear or inertia hold us back. I love that. So as we wrap up our deep dive into this workbook, which let's be honest, was a bit of a roller coaster. What's the biggest takeaway? I think the key message is this. Take charge of your financial future. Don't wait for someone else to do it for you. Get educated, make a plan and take action. I couldn't agree more. This workbook has given us a lot to think about, and I hope it's inspired you to take some action in your own life. Even if it's just one small step this week, every journey begins with a single step, right? Absolutely. Maybe it's creating a budget, researching a new investment strategy, or even just having an honest conversation with your family about money. Whatever it is, take that step. And Hey, if you're feeling inspired, we'd love to hear from you. Share your reflections with us on social media using the hashtag hashtag my deep dive action. We'll be checking in to see what you're up to. Until next time, happy investing everyone.