Another part that is very interesting to look at, which leaves people not understanding what is happening, is evolution itself; when things are changing around you and you are not moving with the trends, you are not aware where wealth is moving. You find yourself caught up in old strategies of creating wealth, and failing horribly because wealth has moved; the gold is finished where you are looking. It is important to move with the times, and being aware of what the trends are changing into. Knowing that it is the information age, you now need knowledge more that you ever needed it in the past; things are becoming more complex than before, and if you have no knowledge and don’t seek it, the chances of you living your best life are zero.
For example, you find these phenomena in developing countries. The generation gap is huge, and it is difficult to keep up with wealth and its evolution for a lot of people which results in the inequality that exists. This gap is obviously caused by the education levels; the state of public education is also not helping in closing the gap between people who are privately schooled and public schooling, which generates a gap of knowledge, confusion and poverty. When people lack knowledge about where wealth is, how to create it, who controls money and how is it created, there is no way they are able to create it. They are lost in transition; they have no idea what hit them.
This is how people fail to adapt to a new economic system and by that reason, end up depending on those who set the new trends, lead the new trends, and those who seek knowledge and easily adapt to the new economic systems. Because of the information gap, people are still stuck in believing the only way to create value is by working for someone else; it is all they know. Industrialisation came and is now slowly evolving to something else. Some people only know it through employment – they never know the leadership that goes on in that system, and they still don’t understand the system. Most are unemployed because of the failures of the big corporate world; they have no idea how to create value on their own, and so they are left in poverty.
The information age is here – it has long been here already. We have already seen globalisation; it is taking over the world. There are people who still don’t know what is going on, or what it all means. They are still stuck in believing gold is in the gold mines, and they can’t recognise the gold in their brains. What am I trying to say here? Wealth moves with the trends, so strive to walk with the trends; set new trends yourself and convince people where wealth exists. Stop following; it is about time other people started following you.
The only way to do this is by working independently, creating your own value, and convincing people to see value in what you do. The only way to breach that information gap is by seeking knowledge, in any form. There is no formal knowledge – knowledge is knowledge and with the information age upon us, it has never been easier to access it than now. You must be an active participant in the economy; take a leading position in your life, especially your financial life - this is what will bring you wealth.
Specialisation will always persist as a way of meeting human needs and wants because of the level of advancement in how these needs and wants are met. In order to meet advanced needs and wants you have to choose a career, as you will need to use advanced knowledge like technology and science. In the medical industry for example, you need to specialise in this industry to meet needs successfully.
Specialisation also depends on individual strengths and one’s level of education. It is just impossible to do everything by yourself. Take a moment right now and think about this; the clothes you are wearing, the food you will have later, your car, the TV, the house, electricity, and everything around you. Would you be able to create all this by yourself? We need each other and specialisation is a way in which you can meet one need. Other people will help you meet all your other needs because they specialise in them. This is true wealth, the sharing of abilities, expertise and most importantly, the sharing of world resources.
As human beings evolve and the quality of life advances there are more and more needs that require to be attended to by experts; people who study and practise in a certain field for years. This is a skill that people must master to fulfil one human need. This is called specialisation. Even industrialisation is born of specialty. Wealth itself is an advancement of the quality of life, and this advancement needs specialised knowledge to meet human challenges in a way that is easier, cheaper and faster. Only specialised education and practise will give you the ability to successfully meet these needs.
3.MOTIVATIONAL FACTS ABOUT MONEY
If money runs the world, then who controls it?
People who control money are the people who have it. You can’t control it if you don’t have any, which is the truth. You only have control over your money, and what you do with it determines if you will have more or less of it after it comes full circle. Yes, the money you use comes full circle. Depending on what you do with it, you get the results of your choices, or what you choose to do with it. The more money you have, the more you have control to influence your future with it; this makes it a very good idea to work towards having more money, as this means more direct control over your future, and more security in your life.
Stock-market and direct investment
Trading on the stock exchange is one of the ways you can invest your money. It allows you to own shares in different companies, and have a portfolio of investments on public trading companies. This is what you must want to achieve. More and more trends of wealth favour someone who has investments. This is investing in securities, which will afford you a better life, so research it and consider having some investment there.
Another important way of investment is direct investment; this is through owning a business, owning shares in businesses, and so on. This will give you security to your income. I talk a lot about having multiple sources of income, and direct investment is the best way I know. You have to work towards this if you haven’t started; it is freedom, it is a gateway to independence and it has much better returns compared to investment funds and the stock exchange market. This is what I mean when I say create your own value. Direct investment is investing your time, your skill and your available resources in yourself. Investing in yourself will bring you true independence.
Personal inflation or consumer inflation
Personal inflation is something we must look at and manage well to achieve our financial goals. We all have personal inflation – it is what causes debt. People spend way over their available funds. They spend money they don’t have and this is the big cause of failure when it comes to achieving your financial goals. It is important to keep check of your budget; do you live within your means or beyond your means?
One of the biggest causes of delays or failures for people to achieve their financial goals and live the life that they dream of is debt, which is caused by people living well beyond their means. If you want success in your life you must strive to live within your means. Watch your inflation, and make sure that you supply more than you demand from the marketplace; this is how you accumulate wealth, by giving out value more often than you use values from other people.
We all have personal inflation; this is how much value we produce compared to how much we consume. If you consume more than you produce you end up with less. We must try to give more value than we use other people’s value because this is what will make us wealthy, and this will enable us to have more than we require.
People ignore this fact and end up expecting their money to do things they just can’t afford with what they earn. This is why people acquire debt and fail to live within their means; they don’t match what they make with what they spend. To be successful in your finances you must strive to make more than you use. This causes growth and you will end up having more than you will ever need in your life. That is wealth.
Financial growth and your quality of life
This is your ultimate goal, I hope. It is very important to explore what it means to you and the best way to achieve it. Wealth is eternal;
when you reach the next level you aspire to reach the following level. It is just the nature of things, but be careful not to focus more on money and ignore other parts of wealth. Your financial success should be reflected in your quality of life, which must match with the amount of money you make. There is no point in making a lot of money when you don’t enjoy it, so play as hard as you work.
Economic growth
The performance of a currency is determined by the productivity of a country. If we are more productive, and if we export more than we import, we in a way create a wealthy country to live in. This is why I encourage people to create value, and to realise their power in the creation of wealth. It is important that we have more creators than employees, as the more we are productive the more wealth we get to achieve. I practise and preach this, which is the creation of value. You must also do the same. The wealthier your neighbour is, the more likely you will be wealthy too, because you will be surrounded by success and you will be doing business with wealthy people.
Also as discussed earlier, money itself is increased through productivity. The more productive we are, and the more value we can create within ourselves, the wealthier we become. The nation’s wealth is in its people; no matter how much foreign investment a country can get, it will only take its ability to create value within its borders to achieve an equally wealthy environment where everyone is enjoying the available wealth. It starts with you, by being productive, creating value and sharing it with other people.
Business acts and market regulations
This is sometimes what holds people back when they think of doing something. Sometimes their fear is based on the lack of knowledge, just like what most fears are based on; the unknown. So if you don’t have knowledge you find yourself fearing things that don’t exist. There’s a lot of fear of the law. Now, I do obey the law. In many instances I must say, it is important that you are aware of the law, to be able to know the business regulations that apply in your country. The only problem is when the law or regulation is stopping you from making a living. If you are honest in what you are doing and have good reasons for your business practices, you should not be afraid to make a living, no matter the means.
You must remember that the rules and regulations are also made by people, people like you. You must be prepared to fight or cause changes to the regulations if they prohibit you from making a living. The law states that everyone is allowed to make business in a lawful way. This is about positioning yourself and being honest in your work, as long as you are not tricking people or robbing people in any way, you can establish any business you want to. But still, when you make business investments, don’t forget to research the laws that apply to your business field, because this might result in you losing your money investments, because your business is forced to close by the law enforcers. It is a tricky situation, but just take the law into consideration when making your investments and in your business dealings.
You should not be intimidated by the law; the law is there and you must just work with it. Be ethical in your dealings and don’t let it intimidate you from pursuing your chosen career path. I am raising this point because many people are afraid to do things because of not understanding or being knowledgeable about the law. Be willing to start. If you don’t understand the regulations, seek help, research information and don’t let fear of the unknown stop you from taking actions. Sometimes you will have to learn the ropes and regulations when you are in business, so just go ahead and do it. You have a right to make a living.
What you should take from this is that you can oppose the law if you have a good reason, especially when it comes to making a living. The best formula is doing it and explaining yourself later. If you want to explain yourself before you take actions, you are most likely going to be discouraged before you even start. What they say is, listen to what the experts tell you not to do and go ahead and do it anyway. You must have that fighting attitude, that belief that you can fight a government’s regulations, and that you can find a way to be accepted with your business model. You must not let rules and regulations box your creativity, nor must you let education limit your creativeness. Expand on what you’ve learnt, expand on what is acceptable, that is what is called setting trends. However, be careful with your investment; you stand to lose a lot if you make an investment that is later forced to be closed by the government. Even when you can fight the system, you still lose on your investments, so treat this with careful consideration.
Demand versus supply
This is the big balance which accounting is always trying to have. It is exactly why the country can’t just print money and give it to us. If they did, we would all stop producing anything and go shopping. The stores would run out of stock because there would be no supply. People would just be buying, but because they are not producing, the currency will collapse. It will lose value if there is no production, which will push prices high. It is similar to personal inflation; you must demand as much as you supply. There must be a balance between the two.
Recession and market collapse
We must look at exactly what causes recession and market collapse. In short, recession is caused by an increased dependence of people on debt. As a result of this, recession is when people can no longer buy at a rate they were buying before. This causes businesses to suffer as they are unable to cope with the slow business caused by people being in debt and not having enough money to buy things. This halts growth and causes a backward movement in the economic growth, which is called recession. It is when a lot of business growth is adversely affected by lack of demand which has a reverse effect on investments.
Human capital that might not be necessary for the production of value because of the lack of demand in the market has to be withdrawn, and people lose their jobs. It mostly affects the workers because when there is lack of demand to the point that the amount of production done needs to be decreased or scaled down in a company, the people producing that value supply will have to also be retrenched and lose their jobs because of it. It is a good way of reminding us that we can live without some things, which is why we can hold back the growth of the whole world if we can’t afford to pay for our lifestyles. We can cut back when situations force us to, so why not cut back now to invest in your future even when times are looking up? That’s a good idea.
The circulation of money
There are two partners at play here: big organisations that control large amounts of money, such as financial institutions or banks, the government treasury and the Reserve Bank, investment funds, individual investors and so forth. The other partner is us, individuals, people who make a living out of money, people who use money, which is everybody.
The organisations are made up of large groups of people who control a lot of money deposits from these people, their members. The managers of these organisations control the circulation of money, which is how much money is in circulation, with a vision to grow it through investments for their members. In addition, the government’s mandate is to grow the economy to be on a par with population growth, so that everyone can have food and have all other needs met.
When money is put into circulation by these organisations through investment, it commands us into activities, work, and production of value to receive value from other people. Policies and the securities around them are made by these organisations to protect the investment and keep it growing, as well as to manage value production and consumption so that there is a balance between production and consumption as too little production and too much consumption causes poverty. When there is a balance, we are all able to make a living so we must make sure that we produce as much as we consume and stop other people from cheating the system, which will cause more lack if it is allowed.
People still cheat and try to rob the system by getting value from other people for no value. It is human, but it has flaws. Even nature has flaws. Why do you think there are floods? Nothing is perfect, and the same applies to the system that controls t
he circulation of money. The laws and policies are there to guard against that, and even when they are wrong or broken sometimes, we must just appreciate that things are always more perfect than not. There is always more good done than bad. Especially when it comes to the monetary system, it is like asking rats to keep your cheese safe; it is guaranteed they will eat some of it. They will take some of it for themselves. The more empowered and educated people are, the more they can make sure that their monetary system is in safe hands.
How people produce value and trade their values using the money in circulation controls wealth and its movement. It controls who gets rich, who doesn’t, and who gets broke; it controls the movement of wealth between us. Every transaction is based on a certain movement of money from one person to another, and by looking at these movements and positioning ourselves well for more money to come our way we become wealthy. The best position to take as discussed throughout this book is to create your own value instead of helping other people create theirs for your whole life. You must create your own.
Money- Wealth Creation Guide Page 4
