Tag Archives: money heist

Investment Lessons from poker

Instead of gambling away all money in Poker, we can learn Investment from it. Don’t trust me, hop on..

1 – ALL IN

Poker tells you to bet as much as you can if the odds are extremely in your favor (remember never to bet your life savings, and to keep some buffer for emergency).

If you come across an Investment which totally completely makes sense to be the next big thing, based on the information you have and the potential it holds (or what you perceive it holds), and you are convinced; then you should probably Invest as much as you can to see that small cap, Crypto or whatever it is, turn Multi-bagger! (remember only Invest the amount you won’t regret if you lose)

2 – Preserving Wealth is difficult than Accumulating it!

Seriously, I have found it very difficult to preserve my balance in Poker, and very easy to lose it all. Well, I know these games are designed this way, nevertheless it teaches us how difficult it can be to stop your urge to spend that extra buck in real life, or to throw that shit loads of money on your next luxury (not saying you should not do it, but be watchful) .

3 – Greater the risk higher the reward >

In Poker the more chips you stake in, the bigger the pot you can win! Well this may not be true everywhere in Life, but it sure is true for some Investments of your life.

Look at the Cryptocurrency in its early years, it sure was risk (well it still is risky but not as much as it used to be), market adoption was low, real use cases or utility was hard to be found, but nevertheless it gave huge returns to those who took the risk or say understood its power. Same applies to some small cap stock which later goes onto become multi-bagger and star of your portfolio.

4 – It feels good when you have a little extra

I don’t know about you, but it feels good to me every time I see my poker chips soaring in value. I hate depleting capital! even if its just a video game.

5 – Money makes money

The more you have, the more you can stake, the higher you can win. Same thing applies to every Investment, the higher you can stake in, the more the ROI (Return on Investment). But be careful remember #2, it is easier to lose wealth than to accumulate.

6 – Kindness

You maybe thinking what does kindness has to do with Poker, or Investment. Well, remember the last time you won a big pot of say some million dollars, have you not given it as tip to the dealer, and as weird as it may sound, have you not felt good giving it away? Answer is you probably did! And it applies more to real Life than Poker, the more you give the happier you get!

So, if you want to just take one thing out of it than let it be ‘Kindness’, why not? Happiness > Money.

Thank you for reading. ‘Leaves with a Poker Face’…

Psychology for Money

Today lets discuss the behavior & the thinking that will not just make you rich but also help keep you rich!

1. Compounding is confusing

Compounding can make a small amount of money to start with, a huge sum defying all the logics. Good Investing isn’t just about high rate of return, its more so about time. The earlier you invest the better the compounding works for you later in the life.

2. Enough is never enough

There is no reason to risk all you have for what you don’t have! Don’t put all eggs in one basket. Always keep some emergency cash, always have enough to survive while you try to thrive!

3. Staying wealthy is harder than getting wealthy

There are thousand ways to be wealthy but to stay wealthy you will need a bit of fear, and a lot of money management skills to not risk what you for what you don’t. As warren buffet says – “Rule No. 1: Never lose money. Rule No. 2: Never forget rule No.”. To remain wealthy you just not need to make money you need to know how to preserve your capital. In order to make more money you need to be more comfortable to have it, hold it and not just spend it.

4. Wealth is what you don’t see

Spending money to show people, on things you buy for show-off is the fastest way to lose wealth! Wealth is made of your financial assets that may not be easily visible to the outer world.

5. Be Happy

To be wealthy, we need to feel good about other people being prosperous. If you have a deep seated idea that rich people are not nice, you are never gonna make it!

That’s all folks, want to know more? I recommend Reading two of the great books that helped me create this post.

Get Rich QUICK!

Spoiler Alert – 99.99% of Get Rich Quick schemes sold in Market are Financial Fraud!

Welcome Riters, today will discuss what are ‘Get Rich Quick’ Schemes, the truth behind them and why/how to avoid them. So Unless you have a money printer running on, you may need to know this.

Pyramid Scheme

Pyramid Scheme is a business model where you recruit people in return of a future promise of wealth creation via promise of payments if you enroll others into the scheme.

In layman terms, it is a sketchy fraudulent business model that works on commissions received by new recruits you recruit or your recruits recruit.

You pay a upfront cost often misguided by the person selling you this scheme in the name of get rich quick! That said mostly pyramid schemes rely on recruitment fees, but sometime they will even sell you tangible goods and services (which of course are not worth the money) to hide the underlying pyramid structure. Often they have a binary structure where in one person has to recruit two others which in turn recruit two others and the list goes on. As long as the Pyramid base is wide the stability remains

Another terms which we often hear is MLM (Multi-Level Marketing).

Multi-Level Marketing, also called Pyramid Selling or Network Marketing

MLM is often a legal business practice, that unlike traditional pyramid scheme involves actual sale of goods & services. Nevertheless their main motto remains hiring new recruits and getting their money. They will at times sell you educational courses and no-value products at high cost, and in turn make you / motivate you to sell them to the new recruits! These schemes work primarily on commission system.

Now other similar financial fraud is referred to as Ponzi Scheme.

Ponzi Scheme

Ponzi Scheme, coined after Charles Ponzi in 1919, refers to as ‘Robbing Peter to pay Paul’, Ponzi Schemes rely on new investors to pay old investors. A certain of people buy into the idea, and Invest, when they sold this to others (new investors) they get to keep the return paying a certain fee to the intermediator a third party.

In a sense, they are similar to Pyramid structure, here instead of recruits you are calling them the Investors and the ideology behind this financial fraud is that of Robbing one to pay other!

Remember the underlying Motto of all these schemes is to steal your money to satiate the greed up the ladder!

News Alert

  • Anubhav teak plantation in India in 1998 was a Ponzi scheme defrauding the depositors of nearly 400 Crore rupees.
  • Bernie Madoff’s (American Financer) Ponzi scheme ran for decades defrauding thousands of investors tens of billions of dollars. Finally in 2009 Madoff was sentenced to 150 years in prison and forced to forfeit $170 billion.Read more about it here

Why say No to Get Rich Quick Fraud Schemes?

  1. They won’t even get you Rich forget about fast.
  2. They are unethical, and at times operate in a legal loophole.
  3. They rip many of their life savings.
    • Based on True Story – Imagine a 25 year old Kiran from an Indian village get convinced by a few friends to invest (as they say it) few lakhs which he arranged selling a piece of land that he inherited, and unable to further recruit others, in turn he convince his family members who end up selling more of their livelihood, their land, finally losing all they had in pursuit of a secure glaring bright future which was never ever possible by the Scheme!
  4. They waste you time! Yes, as you know Time is more precious than Money, lost money can be made again but lost time never comes back.
  5. They can rip you off your livelihood, even if you don’t sell anything like our imaginary friend Kiran these schemes nevertheless instill a hatred in your heart for your job! Now you may never ever gain the promotion you would have easily got at first place, and you may never ever be happy with your Job and that means your future can be bleak.

Now these schemes do have some benefits but the potential risk and damage outweighs these benefits by large (for the sake of discussion lets discuss them).

Benefit1.  You learn to sell, often network marketing if not anything else teaches you how to sell yourself! Which is a very good skill to learn (You don’t need to be involved in fraud to learn this and should rather pursuit it by other means). 2. They teach you about Investment, yes if you are into a Ponzi scheme and you have lost your money, you now know how to not invest, nevertheless often the cost of learning is too high and you may never learn unless you decide to quit!

How to avoid buying into such Frauds?

  1. Never Invest in things you don’t understand. Often times these schemes are sold by using complicated terms and indirect ways, and psychology against you.
  2. Always do your due diligence, and don’t just listen to a random friend.
  3. Don’t blindly trust people with your money (or anything for that matter).
  4. Lastly if someone says they will make you rich quick, run away from there.

To read more about investing – click here!

Opinion alert

With heavy heart and tears in my eyes, I feel very bad to tell you NO GET RICH QUICK SCHEME EXISTS. Yes, But I am in fact happy about this fact. The fact is you need to use knowledge, create value, sell value or your time in return of the Money! Once you have, as Tony Robbins called it critical mass of Money, the money will work to get you more money throughout your life. And that is how my friends, Financial Freedom is made! Don’t ever buy into anything that is being sold to you in the name of ‘Get Rich Quick’, more than 90% of the times they will end up draining your wealth and even if you end up getting more return than you invested or wasted in this case, you will not be wealthy. Wealth comes those who knows how to manage their money i.e. why the odds of you going bankrupt a year after winning the lottery (whose odds are itself very low) is pretty high.

Thank you for reading, follow us for more, and if you gain anything from this do share with your friends!  Keep Hustling, Keep Learning & Keep Investing!

Am I Dumber than She thinks?

Am I? I don’t know (confused), Are you?

“Too many people spend money they haven’t earned, to buy things they don’t want, to impress people that they don’t like.”

-Will Rogers

Hello Riters, Welcome to riteFinance, this is your host Ritesh and today lets discuss about-

Five Dumb ways to spend your Money

  1. Gambling, Believe it or not an average American spend $1000 a year on Lottery, with a odd of winning 1 in 14 millions, i.e. you are 20 times more likely to be struck by a lightening (thunder roars in far), and even if you win the Lottery you are more likely to be broke the next year than to be wealthy. Gambling in any form is a total waste of money, with slot machines and equipment designed in favor of Casinos to drill a hole in your Pocket! Here is link to an interesting read on Psychology behind Casino   
  2. Things you buy to impress them! Yes, that Gucci Scarf or the blue Jaguar, all the liabilities you take just to impress the girl or guy next door can drill a deep hole in your pocket and all your future cash flow may flow down that banking stream. So think before next time you go on a Shopping spree, ask yourself can I really afford it?, will this serve a purpose?, is there a way I can be happy without it? Do I really need it or its just a show-off?  (squirm face)  
  3. Things you buy to destroy health, yinkeesss, what did I say?, yes you heard it right, things like drugs, excessive junk snacks to munch on, or too much alcohol. This things not just have a recurring cost due to their addiction capability but also a cost far beyond your imagination, a cost that no money can pay for.
  4. Fees that Bank Charges: Overdraft charge, Bank Account Maintenance charges, your Card fees or that interest they charge you on Credit Card, even the money that’s deducted when you used your xyz card on abc ATM! To top it all, Bank also has a unique advantage of deducting cash directly from your account. So next time you may like to read your bank statement more carefully or maybe make a call & ask your banker. To know more on how to avoid some of these fees, check out the article here by lendup.com.
  5. In-App Purchases; yes, the skin you bought just to show-off in the virtual world or the extra life in your favorite game, even if it is in 50% discount (which is obviously a fake number to put on), may not be worth your Money (and your time). In most cases put away your phone for few minutes or watch an Ad and you will get an auto renewal of life totally free of cost. Also, the more you spend, the more likely it becomes for you to spend again, so it not only have a present but also the future cost attached to it.

Thank you for reading, let us know in comments below if you don’t do any of the above mentioned Dumb Expenses, or if you have one of yours own. Follow for more, #KeepLearning #Money