Why is money important to get education

Financial education or why a million is less than many think

financial education
Tuesday, January 15, 2019 1:07 PM

If you don't feel rich enough to lead a life as you wish, you should try wealth creation. A conversation full of unexpected twists and turns with wealth builder Andreas Ogger.

Mr. Ogger, there is no systematic teaching program in Germany on how to skillfully build wealth. Is this perhaps because financially educated and therefore wealthy people do not want to pass on their tips in order not to dig their own water?

The financially educated people I was able to get to know better would not confirm your thesis. They don't think like Darwin that only the strongest and brightest survive in the struggle for limited resources. Because behind this is a lack of thinking and the concern "There is not enough for everyone". In my experience, really wealthy people are convinced: "There is enough of everything for everyone, you just have to grab it!" Most of them already had this attitude before they built up their fortunes, and I am sure that it was precisely through this awareness of wealth and abundance that they discovered the possibilities and instruments to build up material wealth.

So financial education is less a question of knowledge and more of faith?

The word faith now makes you sound incredulous. It is not about believing something, but about being something: namely, consciously being rich be - with wealth consciousness! It is a question of attitude that everyone can consciously choose, no matter what the current account balance shows. Less than two percent of people experience such an attitude towards wealth from an early age; however, these people later have more than 60 percent of the world's wealth. Many of them have no greater financial factual knowledge than other smart investors. As indispensable as a certain amount of specialist knowledge, I have observed that it only accounts for a small part of success.

Well, let's talk about a wealth attitude rather than the facts and figures of how one should invest money in this day and age: What was the result of you having acquired this attitude? You live for rent yourself, and you don't drive a Porsche either ...

Do you see ownership of consumer goods, including owner-occupied property and certainly a Porsche, as an expression of wealth? Then you might be new to a bit of financial literacy as I understand it.

Expensive consumer goods may represent wealth, but they are not proof. If you are really rich, you often don't even look at your millions if you don't want to be noticed as "moneyed", as they say in Austria. Very rich people as I know them only show status symbols like Jets and Bentleys if they have a purpose. But many only imagine that they are rich with leasing contracts for expensive consumer goods and bank-financed real estate - but they are usually rich in liabilities.

One of my teachers put this into simple words: "Andreas, you want to learn to build up a large fortune? Then first downsize your car." Or to put it more generally: Make your personal hamster wheel smaller, then more investment money fits into the golden hamster's cheek pockets. This is a simple and effective first step towards wealth creation.

And if you think: "I've heard something as simple as this 100 times", I recommend that you not only hear it, but also implement it as concretely as an already financially well-off doctor in northern Germany who has literally downsized her mid-range car . She invested the 20,000 euro difference, and now, almost two years later, she has an impressively broad and lucrative portfolio. Like every journey, prosperity begins with a first step; If you have specific goals, the path will then come up almost by itself.

Are you, Mr. Ogger, a very rich man who just doesn't show it?

Oh, wealth in numbers is relative and a bit boring. Compared to the financing of the projects I have in mind, I have little money. Measured against the average salary of a German, I am financially good - good enough to be able to afford such an expensive hobby as flying.

For me, whether I'm rich is less a question of nominal number than a question of how rich I feel. And anyone can feel rich if they just open their sock drawer and realize that they have more socks than they need at any given moment. This daily abundance perception is such an effective routine for practicing said abundance awareness and getting more of it, for abundance attracts abundance. As you can see, looking at your account balance isn't everything and sometimes obstructs your view of greater opportunities.

And do you report on these greater possibilities in the one-day finance seminar that you offer in various cities and sometimes online?

My seminar participants quickly consider these greater possibilities themselves. That is also necessary and not a luxury: In view of their usual income situation, many do not dare to think financially bigger and overestimate the value, for example, of one million euros. If you invest this million at today's interest rate, you will receive after taxes an interest income per month that you could no longer live with in a major German city. So there are only two options:

1. Either you are satisfied with measly interest from the bank and also bite down from the million; then it's gone pretty quickly and your fortune is gone. Or:
2. You know how to secure and increase this million in such a way that sooner or later - better sooner - your wealth will finance your livelihood without consuming any capital. With my financial seminar, I want to show you this exciting path, from financial sacrifice to self-determined investor.On the subject

What do I learn in your seminar in order to get there? And what do I do when I don't have a million to invest?

1. You learn to establish wealth as a familiar state of being. You don't need more money for this than you do today, because it's about being, which entails having.
2. On this basis you do what makes money more money: you invest like a rich, financially educated person does. You will need less money to do this than you think. And that leads to you with time
3. Build the wealth that fits your definition of wealth.

In other words, more for the fact-oriented: You learn to think like an institutional investor who:

• Secures large amounts of money and invests profitably at the same time,
• uses concepts that have been valid for centuries in order to create the best possible risk-reward ratio in a balanced portfolio; and he does it so that he
• Has as little work as possible in managing his investments.
These are essential steps for a wealth builder, that's what the seminar is about.

That still sounds pretty general. What exactly do people do differently when they have attended your seminar?

It differs from person to person and depends on their respective starting position and on their willingness to focus. The finance seminar ultimately gives a selection of options along the way: Everyone tackles the tasks that are most urgent for their financial situation. Without exception, everyone benefits from the knowledge and exercises that lead to more fullness awareness in everyday life. I also simply call this "increasing the frequency".

Which steps the investor then takes to build his portfolio is individual and, in my observation, often life-changing:

• Some who have lived in their own property are selling it at the current ridiculous prices in order to rent more cheaply and with the same quality of life; and the capital released is invested more profitably.
• Others set out on a global search for lucrative investment opportunities based on a checklist of criteria that I recommend for examining financial investments.
• Still others make it clear first of all how much assets and values ​​they actually own and how much investment capital has to be built up in order to secure their lifestyle. Most of them lack the goal of such a specific number, and it works wonders just to know it!
• And enlightened investors almost always part with investments that they have made in the past and shift into a portfolio that could be more profitable and better equipped for the turmoil of the future.

It all sounds pretty dry and like hard work. Can you also use it to motivate young people?

Financial education and thus the creation of wealth is fun for everyone over time and can also be achieved largely effortlessly with the right frequency. Even if this path is not strenuous, it requires a minimum of dedication and focus.
The first milestone usually means being financially secure so that a good life would be possible even without work and salary. If there is also a little pension, that's nice, but he wouldn't be dependent on it. Wealth accumulation never stops, but has to go on steadily - if only because of the devaluation of money, which will hit us all massively.

Young people in particular benefit from the most powerful return factor of all: the time factor. "Better start yesterday than tomorrow!" is the motto here, so it is of secondary importance which monthly or one-off sum someone starts with. But even for people who have several decades of life experience, there are proven strategies to make up for the lack of time.

Sticking to your own prosperity planning for the first few years is sometimes a change - but only until the first noticeable returns flow. It doesn't have to take too long, but it is fun for a long time. And to be able to shape your own life largely freely from the income from the wisely invested money - this is what the finance seminar wants to make its contribution: as compact, entertaining and practicable for everyone as possible.