Producer Mindset vs Consumer Mindset

Before industrial revolution began, farming was the major occupation of almost entire world. Jobs were less as there was less technological advances. But today in this information age, companies have become bigger and bigger. So big that only 7 countries in the world has GDP value greater than the market cap of Apple Inc.

Companies started mass producing and people started to settle in the services industry. And in today's world, advertisements are driving the common man to buy things that he didn't require, with the money he don't own. Government wants people to spend as spending money will keep up the GDP value. Government is the number 1 wealth destroyers. You can see detailed information here. Banks started lending and whole new type of loan is made available called consumer loan.

In 2001, bullet cost was around 55,000. If we had bought that, today its value would not be more than 6000 because of depreciation.

In the same year, instead of buying the bullet bike, if we would have bought the bullet stock which would give us small owner ship in a company, stock price was 17.5 rupees. Excluding all the splits and bonus the number of shares held by the owner (Investor) would have been 3142. There was recent split, before that happened, it reached the high value of 17,715. The value it would have made was 5.5 crore from the investment of mere 55000.

I have other example of short term, if you have bought Tata Motors share at the time of corona virus pandemic panic worth the amount of Tata Tiago low end variant, if you sell them today, just a year later after the crisis, you could have bought Tata Nexon high end variant.

Mindset can make you or break you. We as a FIRE enthusiasts should give up of impulse purchases. It's hard to resist when we are bombarded with advertisements to tempt us into buying stuff. Remember the reward of free time, not working for your boss who sucks.