The results of international surveys clearly show that Slovenians are among the less financially literate nations in Europe. Nevertheless, with persistence and dedication, we set ourselves an ambitious goal – we want to become the most financially literate nation in the world.
Today, we have the exceptional honor of hosting Mr. Pravica, an experienced individual who has been living and working in Germany since 1973. With over 40 years of entrepreneurial experience, he has become the founder of various financial companies in the fields of securities, precious metals, real estate, insurance, investment funds, and fund policies. As early as 1991, he recognized the need for professional wealth management advice in Slovenia and founded the first company with this focus. His exceptional contribution to the financial profession is also evident in 1994 when he formulated the first rules for managing the Slovenian mutual fund Galile.
With Mr. Pravica, we will discuss key aspects of financial literacy, the importance of proper asset management, and the challenges and opportunities we face on the path to financial awareness in Slovenia. It presents an opportunity for us to learn and be inspired, and together we can build a path to a more financially literate future.
Do you want to be happy, satisfied in your life?
Are you curious and would you like to learn and discover something new?
If you answered yes to both questions, then we are on the right wavelength. I believe that you will use the time you dedicate to us beneficially, and that you will also make good use of the information you will hear next. Have you ever found yourself in a situation where you said to yourself, “If only I knew, I would do things completely differently?“. Experienced and thoughtful people always inform themselves before making a decision. When they feel they have enough information, they make their decision. What about you?
Today, we live in the largest economic-political experiment in world history. Never before have we witnessed such low interest rates, negative interest rates on government debt, and rapid money creation without backing, which is happening in all countries around the world.
Today, we live in the largest economic-political experiment in world history. Never before have we witnessed such low interest rates, negative interest rates on government debt, and rapid money creation without backing, which is happening in all countries around the world.
When I first heard the statement that we are living in the largest political experiment, I wondered whether things are better or worse today, and I realized that the answer depends on the individual.
However, most people believe that the situation today is worse. It is also important to realize that we cannot control other people, but we always have a choice in how we react to past, present, and future situations. Today, I have an interesting conversationalist in front of me, a special guest, Mr. Bojan Pravica, who is well known to most Slovenians. Twenty years ago, he participated in the founding of the insurance company Slovenika and developed the first unit-linked insurance policy, which is now marketed by all insurance companies. In 2006, he also founded the company Elementum, which has been engaged in investments in physical gold and silver for 17 years, both for legal entities and individuals. So let’s see what motivated Bojan Pravica to dedicate his life (almost exclusively) to finance.
Bojan Pravica: In Germany, like some in Slovenia, I began to inform myself about various areas of finance. While searching for the right investment method for me personally (as it is quite individual for each individual), I discovered the method of average monthly costs, which was previously unknown to me. This method is very interesting, especially when investing in mutual funds and also in precious metals. My main motivation was my own interest, as I wanted to ensure financial security, independence, and prosperity for my family in Germany. At the same time, I recognized a business opportunity in this activity, which still holds true today.
Peter Slapšak: How about taking responsibility? You went to live in Germany, presumably got a job there, and then actually took responsibility for your life and family. Do you think people today are taking responsibility for various aspects of their lives?
Bojan Pravica: It varies greatly. There have been different periods in my life as well. When I became a self-employed entrepreneur in Germany in 1979, I certainly took responsibility for myself and my family. However, in life, it’s always the case that each individual has the freedom to choose whether to pass responsibility onto others (the state, company, partner) or to decide and take responsibility for themselves.
In life, we always have three strategies available to us, which are inherited from the past.
- The first strategy is to remain passive and not change anything, even though we know we should, as it would be better for us.
- The second strategy is simply to avoid the problem.
- The third strategy is to try to confront challenges or problems and solve them ourselves.
Considering that financial security, independence, and freedom primarily depend on the quality of information we acquire at the right time, it is important to realize that we are responsible for obtaining the right information. I believe this is especially important today.
Peter Slapšak: Considering that you have spent the last 30 years between Germany and Slovenia, do you notice any similarities or differences in taking responsibility between these two countries? In Slovenia, we often look at the German market and culture as a model. If we see Germans doing something in a certain way, we often think it’s good. Do you notice any similarities or differences in the way Slovenians and Germans take responsibility? Do you think Germans are more advanced in this area than Slovenians?
Bojan Pravica: If we look at Slovenia’s independence in 1991, we can say that we opted for a different economic system, which created new opportunities. Slovenians had to decide at that time whether to seize those opportunities or not. On the other hand, Germany has had a free market for a long time, and their regulations are already established due to tradition.
Germans are more aware that they need to take care of themselves and do not rely as much on the state. This does not mean that there is no state assistance in Germany, but it is generally understood that individual responsibility is key, regardless of the country. The same rule applies in every country - either you take responsibility yourself or you wait for others to help you.
Peter Slapšak: I remember that period very well. I was much younger when Slovenia gained independence. Our dreams were that Slovenia would become some kind of “a second Switzerland”. Do you think we failed in that regard? While we have made progress in certain areas, there is still much room for improvement. Perhaps the reason for this is that we are not educating ourselves enough or that we are not open enough to change. What do you think could be most improved in the future to come as close as possible to the original goal?
Bojan Pravica: Certainly, what everyone can improve in life, is to free themselves from their fears and worries. Fears and worries can only be overcome by getting informed. However, I believe that many people do not fully utilize their potential, which could be gained through further education in various fields. My personal opinion is that the development of entrepreneurship in Slovenia could greatly improve the well-being and social security of the majority of people who currently have lower incomes. We all know that some professions, currently available, may be lost in the next 30 to 40 years. Therefore, it is important to think about the future today.
Peter Slapšak: We also talked about how investing in knowledge is the investment that brings the best returns. However, more and more people today are experiencing depression and existential stress due to personal problems. Their mindset does not allow them to even consider their well-being and consequently, further education in important areas. How do you currently assess the situation in the world in this regard?
Bojan Pravica: There have always been economic fluctuations worldwide. We know that the world is currently in a major recession due to the COVID-19 pandemic, and the next stage could be depression, as warned by the International Monetary Fund, World Bank, and all governments worldwide. Perhaps a bit in jest, but we notice depression when someone in our environment loses their job, while we notice our own personal depression when we ourselves lose our job. Therefore, I believe it is even more important for individuals to take care of themselves and become more adaptable today. Fear and greed have always been poor advisors. Fear and worry are often the result of ignorance, as we do not know what awaits us, and due to insufficient readiness for different scenarios, we are afraid.
Therefore, we must ensure that we are informed, educated, and consequently well-prepared. After all, knowledge is something that no one can take away from us.
In conclusion, we are aware that the journey to financial literacy is a path that requires continuous learning, adaptation, and determination. Knowledge is the weapon we all have at our disposal, and with it, we can shape a better future for ourselves.
Therefore, let us strive to become the most financially literate nation in the world, as it is the key to lasting prosperity and success at both the individual and societal levels.