Head is capital – Kopf schlägt Kapital | Booksummary

Concept and creative idea

Even a small idea that is simple but well thought out can do. IKEA serves as an example here. It was the first furniture store to offer its products for self-assembly. At that time nobody could have imagined having the customers set up the shelves themselves, it was far too complicated. It was then. The founder had to rethink the complete assembly concept and build a shelf that a customer can put together himself without the slightest experience. The idea was born, the rest is history.

Function instead of convention
Most people associate an idea with an idea, but that’s not what this is about. Apparently, the development of an idea can be approached systematically and brought to a successful conclusion. Alternatively, it is noticed early on that and what needs to be worked on, which saves time and effort. This is the first idea. He may be something fleeting, theoretical and perhaps idealistic. Great, write them down and think them through. Write down all the steps necessary for a first prototype and just start. You will be amazed how quickly you have something ready to test that allows you to get feedback from other people.
The Internet is the perfect medium for this, as friends and family are not always honest with you. So please write me on how you like this post and how I can improve them! Thanks 🙂

The bait must taste good to the fish, not the fishermen

Very important: the buyer decides on the economic success. The market determines the success or failure of any idea. Therefore, it is important to get feedback as early as possible and to adapt your strategy or idea if necessary.

Imagine we are back in the Stone Age, and see fish swimming in the water. We think good and want to catch one. Now we know that we love to eat berries ourselves, so why not the fish if they are so delicious. It should come as no surprise that the yield will not be too high, as would have been the case with maggots, for example. They just used the wrong bait. And exactly this is the art to find at the beginning. Just because you are super convinced of an idea yourself, the others do not have to like the idea automatically. However, it can be changed in such a way that interest arises!

3 final tips

Scalability
It must be possible to duplicate the idea without much additional time. This is why many people work with their own product, such as a DVD collection or software that is copied and released. The software only needs to be written once, and can be used by 1 million people and more without any additional effort. When I run a restaurant, the amount of customers I can serve is directly linked to my time or that of my employees. A scalable system here would be the well-known delivery hero or delivery command. The founders are not in the kitchen themselves, but earn money with every order.

Simplicity
“If you can’t just explain something, you haven’t understood it enough.” – This quote was written by Einstein and describes it quite well. For the masses to use it, it has to be simple, because they all have different backgrounds and levels of knowledge. There’s a rule that says if you can explain it to a 10-year-old, then you really understand. If an app is not easy to understand and use, the masses will uninstall it immediately and the customer will be lost.

Pareto – 80/20
Everything doesn’t have to be perfect. Didn’t you feel like you wanted to finish something, but needed the same time again towards the end, even though little has changed in the end result? In 20% of the time we achieve 80% of the result, said Vilfredo Pareto. And in a way that’s true. Too often we waste time with something that is ok and in this state is actually already finished. It is simply more effective to be satisfied with three 80% results than with a 98% result we are still sitting on. Done is better than perfect!

Money – Master the Game | Booksummary

In the following, my notes to Tony Robbins book Money – Master the Game are listed. A quick summary for the people out there who want maybe buy this book and want to know whats inside.

#1: Asset managers

Most asset managers can’t beat the market, even if they say. 96% of mutual funds don’t beat the market for a consistent stretch of time. The market is a scale that is always in balance.

#2: Cost Average

Take 10-15% of your income every month, whether the market is up or down. Use the Cost Average Effect. The longer the investment horizon, the greater the potential compound interest effect on the initial value of the investment.

#3: Automate your investment

Automate investing or you probably won’t do it. That’s the key. It’s a lot of work doing it two times a month for 20 years. You will forget it sometimes. I personally use ETF savings plans, because they are debited directly 2x a month from my bank account. Tony Robbins mentioned Schwab in his book.

#4: Index investing

He mentioned, that it’s hard to beat an index the long term. His example is the “S&P 500“. You can invest completely passive. Even if a company which is in the index goes bankrupt, it hardly weighs in the index. The purpose of a stock exchange index is to provide representative documentation of developments on the respective submarket.

#5: Avoid mutual funds

Avoid mutual funds! The banker wants you to buy funds because he earns money with it. It costs regularly and the return is less due to the costs incurred by the banker. Do it yourself. Be your own banker.

#6: How much money for financial freedom

6) Do not aim for a sum until the end of your life, but for permanent interest. A system must be created that supports itself. People are getting older, you don’t know how long you will need it. A rule of thumb says: Take your annual expenses, multiply by 25 and that’s the fortune you need to live on the interest.

#7: Fund manager VS. fiduciary

Fund managers are not your friend. It’s their job to sell you more so they keep their job and get their commission. Find a good fiduciary for expert opinions. A fiduciary manages the assets of another person. He doesn’t care about your finances, so he has no interest in it.

#8: Save taxes

Robbins mentions the “Roth IRA” or “Roth 401(k)” which is generally not taxed under US law. Now, because I live in Germany that’s no option for me. Under German Law, selling real estate after 10 years or cryptocurrency after one year holding is tax-free.

#9: Rule 1: Don’t lose money

Rule 2: Repeat rule 1

#10: Tax is different. Depends on where you live.

Your money “disappears” faster in some places than in others. What do I mean by that: The cost of living and rents are different everywhere. Robbins mentions a website, where you can see the differences in the US. It’s not relevant for people outside the US but burns a nice picture to your head: Click

#11: Diversification

Betting on just one horse is the biggest risk, even with an index. Distribute your risk so that the total yield will decrease though for the start but is the better choice.

#12: Nonprofit organizations

He mentions websites like Vanguard and TIAA-CREF which are not profit-oriented. In other words, no conflict of interest. TIAA’s goal is to help their customers reach their financial goals. I personally write down all my costs in an app and report them every six months. The result is a saving rate of 60%. You can see here how I did it for two years now.