Learn about money ( Lesson 3)

DESICION MAKING ON MONEY 

Bheema applies strategies as per advise of his friend Ram and eventually he found himself with two properties after three years. He thanked him in his dream,day and night after a year he comes with a successful business idea setting up a vegetable market inside his town limits as there is none. He launches vegetable market after a month it sales picks up as the message spreads,then he sets up another market even the new store sale picks up by 5x within few days. With high expectations he sets up a "super mart" which contain almost 60+ variety,however within few weeks with no sales in " super mart" he shuts it down the revenue from the other two stores are spent entirely for setting up of new store without further money for investment to run the existing stores he again falls into  money trap,he then calls his friend Ram.

BHEEMA: Hello ram

RAM : Yes bheema hearing you after a long time.

BHEEMA: ya

RAM: Is everything ok?

BHEEMA: completely messed

RAM:  what do you mean?

BHEEMA: Vegetable market...explains

RAM: Simple mistake leads to catastrophic consequences.

BHEEMA: What is that simple mistake?

RAM: Lack of financial knowledge.

BHEEMA: You told me earlier, but I was the  one who ignored.

RAM: Listen to me,Your Vegetable market in limits of town was a problem solver and it is really appealing however after your buisness picked up,you become "greedy" and set up stores than the market need.

BHEEMA: I can't understand 

RAM: suppose let's say your town has a population of five lakhs which requires 5000 tons of vegetables per day,now you have set up vegetable stores which is already supplying 5000 tons. Later you set up a additional stores which led excess supply of more than 1000 tons per day (which has no customers) this results in rising operations costs and thus you got stuck in losses.

BHEEMA: So?

RAM: Never take emotional decisions, your emotions influence your decision making,Instead you have to focus on rational decisions.

BHEEMA: You are my teacher.

LESSON LEARNED:

"NEVER TAKE EMOTIONAL DECISIONS"

 "ALWAYS TAKE RATIONAL DECISIONS"

HUMANS ARE CONTROLLED BY TWO EMOTIONS GREED AND FEAR

          -ROBERT KIYOSAKI