You can be rich either by devoting most of your time to a moneymaking venture or, you can wait many years and be rich by saving a percentage of your income -with the power of compound interest.
Money is a notional thing it is your purchasing power at any given time. You should kknow that money is what it is – a value of something it can be exchanged for.
Money is Value
When you make money by working at your job or business, it’s a value you are creating for your employer or customers. You are earning in exchange for providing this value. If you want to make a million dollars in X amount of time, ask yourself how to create a value worth a million dollars in X amount of time. Don’t think in terms of how you can get a million dollars in currency notes.
When you stop thinking about currency notes or adding a few extra zeroes to your net worth, you will automatically stop thinking about Lottery, gambling and penny stock, for example. In these examples you do nothing but gamble. You may make money, you may lose money.
During my early days of investing, I often pondered buying penny stocks, which would grow into a giant corporation rendering me a couple million dollars in profit. That was just ridiculous thinking on my part. It only happens in dreams and to filthy lucky ones in real life.
People do win lotteries, people do inherit estates, and there are claims of making huge sums in stock market gambling as well. They are one-off cases, not sustainable. Even if you win a lottery, you can’t repeat the feat again. We shouldn’t waste our time waiting for a windfall.
As simple as it sounds, to make $1000, you need to create value of $1000. That’s the easiest way of making money and becoming rich that I know of.
That’s because money is value. That’s how the universe works; that’s how the natural order is maintained.
The values of things were always there. Money, the way we know it, currency notes, were created by human beings. Money is just a medium of exchanging values between people. We spend money to buy value and then enhance its value further to get back more money. The value is shapeless and formless but it’s of tremendous importance.
To Earn $X, Create $X Value
Can you name someone who’s known for his monetary wealth and not for his value creation? Rockefeller, America’s first billionaire is more regarded for his oil business. Wikipedia lists this about Rockefeller:
“Rockefeller revolutionized the petroleum industry and defined the structure of modern philanthropy.” That’s mentioned in the beginning of the page, before they started talking about his wealth. Talk about Bill gates, Steve jobs they created tremendous value in our life, they didn’t win lottery or gambled in stock market.
When you are about to die, you’ll measure your success by how many people love you and how much value you created for them. Not by how much money you have in the bank. That’s the last test of how you’ve lived your life.
In your endeavor to create value, you’ll have your fair share of obstacles. But as with achieving anything good, you need to overcome all the difficulties. Are you prepared?
When I started this blog, I wasn’t concerned with the revenue generation aspects of it, at all. People who know about this blog used to wonder, “How much can you earn blogging?” and “There are so many bloggers writing about personal finance”. They wondered if I would be able to earn any money at all. Now I am earning money. There is no gambling here, people come to this blog to get some value. They come back again to read more. Some of them keep coming and read every post.
With every visit my earning grows, there are other writers writing about personal finance, but there’s something in my work as well because of which people visit my blog. I don’t think anybody has any less potential to earn money than others. There is no limit, as I said earlier, Money is value and there’s no limit of value in this world.
More value you create for others, the richer you’ll become in the long run. Just don’t lose heart. It will take time and effort to spread the message of the value you are creating. Once it’s out, there’s no stopping, as long as the value proposition is maintained.
Likewise, regardless of what you want to do in life, there is no limit to how much you can earn. It is independent of a set path. The revenue-generation potential is independent of what you do. It’s got everything to do with how much value you’re bringing to the world, and nothing to do with how lucrative that career path may seem.
Many of us see drawing as a hobby that would hardly earn any money, but the top artists earn more money than we can ever imagine.
The same goes for every other professions out there, be it designing, cooking, painting, teaching, acting, sports, fitness, racing, writing, blogging, photography, videography, computer programming and so on. It’s all about the value you can create for the outside world. As long as you create value, people will pay money for it.
To make $X, you need to generate a product or service that someone else wants to have for $X. How can you create this $X of value for others ?
Whether this value creation comes from selling a product or a service, or even a bright idea; look what Michael Zuckerberg did. He saw value in providing people (social animals) an online social atmosphere. And, that value addition changed our lives forever.
If you want to make money, start thinking what can you do to help change others’ lives for the better? The more value you create, the more money you’ll make. The more you can enhance their lives, the more they’ll want to pay.
Change your thoughts about making money. Think about ways to achieve your financial goals. Start by first thinking in terms of the value that you are going to create for takers.
Think about how you can create value worth $10,000; don’t think about “How can I make $10,000?”
Take a piece of paper and answer the following questions:
- What’s Your Financial Goal? What is your biggest financial goal now? How much do you want to earn?
- Build Self Awareness – Stop seeing this goal as a monetary, financial goal. Rather, start seeing it in terms of the value you need to create.
- How To Create – How do you intend to create this $10,000 of value for others? Think of as many ways as possible. Some questions to help you narrow down the search:
- Who are the people you need to create value for?
- What are the biggest needs of those people?
- What needs of your target population are not met by others before you?
- What are you better at doing that you can offer?
- What will be most (or more) beneficial to others?
- How can you make them aware of your work toward their benefits?
- Do you need external help? Where can you get help?
The money you earn is a result of you creating value for others. As long as you keep this principle in mind, you’ll continue to get ahead toward being rich! Ending it with immortal Warren Buffet quote for us to think.
I always knew I was going to be rich. I don’t think I ever doubted it for a minute ~ Warren Buffett