Topic: True wealth and fake wealth (Read 1269 times)

Land, Property is real wealth. Some advice from OP from a person who is not rich and his realities.
Today, wealth is known as knowlodge, wisdom and other wealth definitions. As for investments, limited assets, stocks, almost all of them being in the circle will add true and real wealth to you.

There is a lot of wisdom in that, basically you hit the nail on the head with many things, in investments and money when it moves with business it is obvious that it will always generate more money, it will generate employment and that is what really gives rise to your economy to grow one year, if you do things like that, when a person pretends to be what he is not, and gets luxurious houses and the latest model cars, there will come a time when if he does not work he will make money ,  then it would become his guillotine, because he will have to sell everything to be able to pay his taxes and the expenses that having those luxuries entails.

Hahaha you are very silly   where do you got this orientation from? I Doubt if you know what you are explaining. How can you classify land as a fake wealth and classify physical paper fiat as true wealth?
Well if you don't know , know it from now that anything capable of generating money for you is an asset or real wealth as you formally callee it, but whatever that doesn't yeild profit for you can be described as a liability. For example

1. Land: is an asset but a physical asset because it add value in due time wether you invest on it or not. But if you chose to build house for rentage and rent it out for people it will add more value because it will yeild profit annually. Or if you use it for livestock farming, it will still be an asset.

2. Bitcoin investment is anoter asset but a volatile one which means it's wealth is under probability. Which means you either make profit or lose as bitcoin price changes but will preferably be good to hold for a longer time because the theory of making profit from bitcoin asset is to HODl for long. If you sell too quickly you may sell at lost but yet it is still an online asset.

Investing on stock and bond is still ok, just that you mixed everything up, if not you came up with some decent idea.

Food at home is not a wealth rather a necessity of life. But doesn't classify it as wealth.

Fake wealth will not allow you to enjoy the wealth so long before you will be coming down to square zero hope you know that, while the true wealth that came from a genuine source will continue to multiply for you to enjoy long wealth without having the fear of going back to square zero in the future. Meaning, if your friends introduce you to rubbery or fraudster to get wealth, you will join them to get wealth in such way which is what I refer to fake wealth, because the day you will be caught in that rubbery or fraudster by the police men, it may end your life. You can also get true wealth from land and properties, because is a good investment people are using these days to get wealthy, because people need land everyday to build houses or company to develop the community.

While this is a great idea, it can be said that things with the dictators are excellent when the country as such respects and accepts such organizations, if it is an app that is on the way to becoming socialist/communitarian, this is very possible that it will die and remain as a great idea, I say this from my own experience in my country, things happened like this, and all the unions are practically dead, in fact, many of those who were in the unions left the country to work in the USA cleaning bathrooms, washing dishes and leaving their professions aside.

True wealth and fake wealth have some similarities to people that aren't wealthy or can't distinguish between them. There's no need in wanting fake wealth when you can work towards getting the real wealth through hardwork and investment and after getting the wealth, you can then enjoy being wealthy. After working tirelessly, don't forget to put the money you made into an investment for some years to help make you more money. Rich neighborhood have lots of fake wealth people that are pretending be rich because we have poor people's disguising as the rich to mingle and feel what it's like to be rich. Real wealth don't need to make noise before you can recognised its presence. When you're not rich yet, don't fool yourself by telling people that you're rich. Instead when rich, claim to be poor as it'll help you avoid enemies and without many enemies you won't have obstacles to wealth.

There has been a lot of research when it comes to the way we learn things up, and the evidence shows that if you get immediate feedback related to a topic you wanted to learn, then your learning will be many times faster than if you did not received any feedback or if it took a lot of time to receive it, this explains why people are so slow to learn anything about their own finances, since the decision to waste their money in stuff they do not need will only come to haunt them until many years later, when they may have used that money to get them out of a difficult economic situation, and it is precisely because of this that we need learn how to manage our finances on our own, as this will save us a massive amount of money through the years and it will allow us to retire early and more comfortably.

More than just an idealistic one, there are a lot of people like me who thinks this could happen and do not want to invest into centralized one. You may think "why would they" but as long as humans are involved, anything could happen. From something as simple as "they will steal all our money" type of thing, to "government will freeze their account so they can't pay us" type of thing, there are a million reasons.

I cannot give you an exact reason what will happen because nothing has happened yet, but there are many possibilities of why they may not able to pay us, and this is why I fear them and do not put any money into them. So this isn't just a preference, I do not use decentralized ones neither to be fair because I am against this all together, but at the end of the day we are going to see stablecoins which are centralized are much worse and there is no reason to use them. The best way to move forward would be focusing on what you already used.

I guess it's more like an idealistic choice to prefer decentralized coins. No one seriously think that they would be the ones being affected by centralization and freezing funds, but ideologically decentralization is about same thing as us 2dn amendment. It's a tool for fighting, in case government ever turns against their people. Not just against their criminals.

But in both cases you are up against a country with an army, so unless that army divides too, i can't see that as a winnable fight.

Those centralized stablecoins are said that they can freeze or hold people's fund. But what could be the main reason of doing so? It is not that they're just going to do it randomly without any reason. One of the most typical reasons why they're going to freeze people's fund is if it comes from hacked funds. So, this is a way to maintain the control of the money that has been embezzled by the hackers to stop them from trading it.
Like this scenario: Tether freezes $5.2M in USDT linked to phishing scams

Although we don't like to get into centralized stable coins but the demand speaks for itself and people are still using even having the knowledge that stable coins like Tether can freeze people's asset. Btw, there are some of the stable coins that we can use that are decentralized like DAI. I don't know if there are some others but that's I think the community's choice if it's about the decentralized stable coin.

But in case of a natural disaster, you can lose everything, and if you keep a small part of the money in the bank, in your account, from which you can pay for purchases using a bank card, then this will not be superfluous. I myself used to be against dealing with banks, but in the end, I keep some insignificant amount in the bank, sometimes it is convenient for some small payments for food or services.

Rich people also do not keep a lot of money in the bank, their money works in their investments and their businesses, this can be called real wealth, when your money works and brings income. And fake wealth is when a person has a big house, beautiful cars and many other material values, but all this does not belong to them but is in a mortgage and they can lose it all at any time.

That's not how this works.

Let's start with the fact that you have no control over fiat money. At least not any more than you have over a piece of land.
You think you can't move land when you travel? They will take your money as well, just like they did to Ukrainians fleeing to the EU and as the Chinese did to people who wanted to leave the country.

Fiat money is only a transactional token. It doesn't belong to you any more than your apartment.

People spending most of their money on liabilities makes no sense to me, they are just wasting their money on nothing. Keep investing into things that will go up in the future and make you richer, why get something that will go down in value over time? Makes no sense to me at all, and most people like that ends up losing too much money as well.

I believe there are few simple things that humans need that we need to spend money on, a house, a car if you travel a lot (like go to work and come back is cheaper with a car for example) some clothes, some items for the home, eating, and pretty much things like that, simple basic needs. If you spend money on these as little as possible and save the rest, and put them into something that grows, then you will retire within 20 years, and by 40-45 years old, you will have enough to just retire. Most people fail to see this and try to make more money and spend more money, which has no end at all unfortunately.

We read as childhood..
If knowledge is confined to books without acquiring knowledge, that knowledge is of no use when it is needed.
Just like that
If your wealth is controlled by a bank or some other third party then the last wealth will not be of use to you in your need.

In our country, when there is a sudden flood or any other natural disaster, the only time of need is the money and food collected at home. The money saved in the bank is not useful in times of dire need but requires the permission of various third parties to withdraw that money.

That's the dilemma when it comes to cryptocurrencies. We have no control of what will be the value of our holdings even after few hours of possessing it. Also, when it comes to stablecoins, as this is a centralized type of stablecoin, the owner/s behind it can easily freeze or hold your funds.

It is always best to have some fallback if in case you will venture in cryptocurrencies. In my opinion, it will be more on tangible assets such as real-estate, jewelry, precious metals and other physical assets that you can sell in case of budgetary constraints.

Remember, crypto is very volatile up until now. Relying alone on this market is quite suicidal. Better secure yourself with other financial options.

All this confusion came from the OP. Because when we are talking of wealth all luxuries items and car on not thinking that you will depend on, because if you are wealthy you will not take anything as a liability it should be as a result of need or other things, moreover all this Jewelries and cars that you are classifying as fake wealth might be a great investment on the future. Take an instance you have a Rolex watch that was only produced in 4 pieces and you keep it for 5 years did you think the value will still be the same?

All those that think cars, jewelries in some case are not liabilities but also sources of investment. So those that will be classified as people with fake wealth are people that are not yet wealthy but they will claim that they are, which they will have to suffer more to maintain all those things.

That is why sometimes we wonder why some people who we believed were rich and wealthy suddenly become poor all of a sudden. They wasted lots of their resources accumulating liabilities (which I think are fake wealth). It is true that lots of people do not know the differences between assets and liabilities and I still blame them for making some kinds of financial mistakes when it comes to creating wealth. There are lots of financial advisors who can give them sound financial advice on how to spend their own money and reserve some for real wealth creation. Some people just love to learn the hard way.

So according to you fake wealth is something you don't have control over? And you consider fiat money as fake wealth because you cant control it? Then what about the volatility of the price of crypto currencies? You don't have control over the price or the market. If you hold crypto currencies only, your wealth might be $100 today, but tomorrow it might end up being less than $50. So not a wise choice to be honest. And then you mentioned about stable coins. Just letting you know that all stable coins are centralized and that they can freeze your wallet anytime they like just like fiat banks.

From the wealth that we have, it should be able to produce long-term results, so we have to invest in land for agriculture, it will definitely produce results if it is managed well, and the price also increases relatively every year, depending on the place and location that we will buy.

That is one of the main differences between those that know how to manage their money and those that do not, an asset and a liability may seem the same to those that do not know how to manage their money but they are in fact very different, very often I see people buying a huge house they do not need in order to live there and they call it an investment, and this is a mistake as it is a liability, it would have been better for them to buy a much smaller house, pay it as soon as possible and use all of that extra money to build a business or buy other properties they can rent or sell for a higher price.