Sunday, 2 February 2014

Assets before Gold


As you can see, I am at over nearly 1 million gold in assets and liquid gold. I am fairly proud of myself, even though I log in and only have just over 100k.

Now, some people would stress out over this. Feel like they aren't getting very far, despite working their butts off. There is no need to panic, even if you have less gold than when you started.

 'The whole point of gold making is to make gold though, Tauna!' you say. The assets count as part of your portfolio though. In real life, a person is worth whatever their bank account is plus the value of their assets (roughly). If you value yourself just by the gold you have, then there isn't much point to gold making.

The best way to make gold is to reinvest. I had dropped down to 50k gold since I have started gold making, and started stressing when I looked at that small amount of gold. 'What have I done?', I thought. I just spent everything I worked so hard for! Then I opened up my TSM and saw the Current Auctions Value. My heart lifted! I was rich!

So, before you jump on the depressive band wagon check how much you have in assets. Don't be afraid to spend, if you can get it back. There is nothing more satisfying than dropping to 50k gold, and making it back up.


6 comments:

  1. Excellent post. This issue used to plague my gold-making thought process. It felt like all the time I had invested in gold-making had produced nothing but an enormous stockpile of highly transient profession mats and all too stagnant xmog BoE's.

    It took a few months of active (if light) cognitive effort for me to be comfortable with my liquid number. Besides doing a little cognitive behavioral therapy on myself, the other thing that helped mitigate the issue was increasing my liquidity from 100K-150K to roughly 250K-300K.

    Humans instinctively think about this type of problem in terms of resource management, meaning there is a threshold of resources on-hand required to allow us to feel secure. Most of us lack the ability to turn it off for the sake of decreasing stress, and we probably wouldn't want to anyway for most online gaming, so gold-making isn't exempt :P. Our perception of this threshold is almost entirely relative, and it varies wildly across time, individuals, and circumstances as a result. I think the best way to quiet those nagging thoughts is to a) increase your liquidity by limiting or freezing spending for a while, including investments; and b) identify your comfortable range of liquidity before resuming full investment activity. There is a number out there for almost everyone ;)

    TLDR: Being cognizant of liquidity insecurity and remembering your assets definitely helps. If that's not enough, try freezing investments and allowing your liquidity to grow until you find your comfort zone.

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  2. I've seen this behavior before, and it usually ends bad. People earn, grow, and eventually realize they're sitting on more stuff than they can handle. They start gutting prices to unload, taking losses in the process.

    In other words, you're sitting on a market bubble, not assets. Don't get stuck with all that stuff when the bubble bursts.

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  3. Be careful laboring under false impressions on what you think you have based on "Auction pricing", Especially on a relatively 'dead' server, though that may not be the case for you

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  4. I dropped to 40k 2 days before Blizzcon when I capped Invincible. I'm at 900k currently, 3 months later.

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  5. What part of TSM are you getting this info from? I used to be quite familiar with TSM 1.0, but am still learning a lot of the finer points of TSM 2 after coming back from a break. I would think this would be somewhere in Accounting, but I can't find anything quite like it.

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    Replies
    1. When you mouse over your gold in the TSM Shopping section, it shows up there

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