June 1, 2017 0 Comments Thoughts and Feelings Working in Alberta

Scrutiny of the Public

Throughout our road of career and personal development, we run into many who will attempt to drag us down, stand in our way, and/or doubt our abilities.

Sometimes I am asked why I did not become an employee in accounting or finance – yet I still had the motivation to become my own consultant/accountant/analyst. The wrong attitude, the scrutiny of the public, and education’s corrosion of the open mind – are the Achilles heels to financial prosperity- especially in the world of finance.

Beginner economics teaches us the principle of no risk, no return. The average person is very risk averse- uncomfortable with volatility and debt. He/she is narrow-minded and short-sighted to differentiate between speculation and investing. He/she does not have the open mind to try something different. Many large corporations’ stocks, exchange traded funds, and mutual funds fail to produce high returns, as money managers must submit to the demands of the public whose money construct the funds. Most people are also afraid of being looked down upon- such as saying they owe x dollars, or their share in a business is not currently making money. They panic because their share in a business is worth a few percent less on 1 given day, week, or month. They panic because one day/week/month they do not make money, when this is minuscule in the grand scheme of time. Negative attitude is like a cancer and brings the masses down – including the potential performance of these stocks and funds.

Most people do not want to do something different in their life, and just want to mold into the common social fabric. Instead of creating their original idea, they look to the news, other people, and social media for guidance. Most people lack aggression and ambition. Debt and risk are seen as a general evil. Somebody nowadays can be ridiculed merely for being a certain age for wanting to achieve a dream, because OTHER people that age do not want such a dream. How can you even grow with people with that pessimism? Instead of asking HOW something is possible, they automatically deem something is NOT possible, just because OTHER people find it not possible.

Many educated individuals found in finance shun risk takers or people who do something different. They believe due to their education and experience, they are God’s gift with a crystal ball in the financial world seeing its “truth and doom”. Some of the shunning is out of jealousy and bitterness, knowing that they could never bear the risk themselves to get further ahead – and for this reason, they are stuck being employees. Some bankers are downright illogical, horrified at the idea of risk, debt, or doing something different – though their income originates from somebody who once dared to take that risk, debt, or doing something different.

Educated and experienced financial individuals also believe their rationale is automatically superior to yours. This is where many got money from Mom and Dad for a university degree(s), but only sufficed enough ambition to be glorified salespeople. They do not have the attitude to manage and grow their own money at the rate of successful entrepreneurs and risk-taking investors. Nevertheless, like fitness and dating consultants, they will take great extremes to tell you you are wrong and they are right.

Ironically enough, this experience is what motivated me to become my own consultant/accountant/analyst – as nobody in the financial fields has cooperated. Not one accountant has solved my accounting challenges. Not one banker or analyst has solved my financial challenges. Thus, I’ve learned on my own.

Some comments you will commonly hear:

Pay down your mortgage first.

Get a stable salary job, especially a government one. Be safe. Don’t ever start your own business. You might just fail and lose all your money.

Put all your spare cash into a savings account.

Don’t touch stocks, they are risky and go up and down.

Pay down all your debts first.

Don’t work in commodity-tied industries. Don’t work in a job where you are worried about the price of oil. Just take a shitty wage and be happy you’re working all the time.

Aim for only positive cashflow in real estate. Pay mortgages down to artificially produce a positive cashflow situation.

And, some of them will live to see you fail, so they can get a self-pat in the back of reassurance that they are God’s gift and supposingly always right.

Most people are afraid to deny others, and be looked in denial themselves. Most people want social acceptance. Most people don’t want to be the guy/woman at a dinner table saying they owe banks all this money. It sounds nicer to say you have everything paid off. It sounds nicer to say you have 3 houses and a Ferrari paid with cash than a million dollars worth of profitable stocks.

It initially sounds nicer to say your condo has appreciated $30,000, than that your stocks dropped $20,000 now and then later will rise by $60,000.

It initially sounds nicer to say you went to university for 5 years and ended up in an analyst job making $50,000/year, than dropping out in Year 4, starting your own business, losing money in Year 5 and then listening to dozens of people shun you for taking the risk and you should had stayed in school and just saved all your pocket change. But then you turn around and make $100,000+/year by Year 6 and laugh at them.

It initially sounds nicer to say you have $50,000 in the savings account that will grow by 2% a year, than borrowing $100,000 and turning it into $200,000 4 years later.

Often, it’s just easier to roll your eyes to a critic and let the results speak for themselves years later.