The secret behind wealth creation
You must have heard of Jeff Bezos, the founder of Amazon who has a net worth of over $180 billion. And then there’s you. You’re probably working a job right now, one that you got from the degree that you studied for in a university.
You probably don’t have much in savings, your living expenses seem ridiculously high… you feel as though you’re not paid enough. You have credit card debt that needs taking care of.
Maybe you are a student studying for a degree that you hope can land you a job that you hope can bring some good money. You probably don’t have any savings, only a pesky student debt hanging above your head. Wealth…getting rich…all that seems like a distant dream. “How did they do it?” you ask yourself seeing all those millionaires… billionaires, especially the ones who got there at such a young age. It baffles you, it makes you angry. They got lucky or they cheated their way to that money.
Those dreams you had of buying that mansion, your favorite sports car, paying off your mortgage, traveling around the world. They’ll forever remain that way just dreams. Nothing more nothing less. You come to the harsh realization. It’s a rigged game. It’s been a rigged game from the start and you…you’re on the losing side of it.
But what if I told you you were wrong. What if there was a way of getting there?… An actual equation to wealth, some science behind the way money works. What if you didn’t have to abandon those dreams of paying off your parent’s mortgage or traveling around the world?
You’ll understand there’s a side to the coin that you’re not being shown but I warn you the road is tough. It’s filled with struggle. It’s filled with ups and downs. It will need swallowing some difficult truths of the school system and society haven’t told you yet and let me be clear…there are many of you who will not make it to the end of this road. But for those of you that do…at the end of this road lies wealth beyond what you thought you could attain. At the end of that road lies the freedom of never having to worry about money again. So are you with me? Still with me? Then let’s not waste any more time.
What is money?
What do you really think about money? Is this something you work for? Is it earned or is it inherited? Is it the root cause of all evil? Are you desperate to have more of it? Have you been chasing it most of your life?
Truth is most of what you think about money has been influenced by your upbringing and environment. If you were born into a family that didn’t have much money growing up, then you’re more inclined to believe that you will never grow up to have much money or perhaps you went on the complete opposite end and decided to make as much money as you can so that you will never be in that position again. The fact that your school didn’t teach you much about this subject won’t change things and because of this most of you are going to have false beliefs about money that aren’t going to help you on this journey.
From today onwards, you’re gonna have to change the way you’ve been seeing money your whole life. Hollywood has always had a habit of depicting the wealthy and rich as evil backstabbing entitled or corrupt individuals. Question is have you bought into that stereotype? A recent report released by Wealth X showed that of the world’s ultra-wealthy those that had a net worth of 30 million or more, 68 percent of them were self-made and it seems like every other study backs up this conclusion. Warren Buffett self-made billionaire, Howard Schultz born in poverty, Oprah Winfrey born in poverty, Jeff Bezos self-made billionaire, Elon Musk self-made billionaire, Sara Blakely self-made billionaire. What is it that these people know that you don’t?
The truth is your equation is all wrong. Here’s the two-dimensional equation that you’ve been taught: money equals salary earned from a job. Past a certain point, the prospect of getting a job becomes the sole purpose of your education. So what’s wrong with that? I’m gonna assume that if you’re reading this you want to make money…a lot of it and in a short amount of time as possible if that is your goal. Then this equation for generating money will never get you there. We all have a precious resource…the most important resource for all and once it’s gone, there’s no way of getting it back. That resource is TIME.
In a standard job, the amount of money you burn is dependent on the amount of time you put into that job. If you earned $20 an hour and worked 40 hours a week, it would take you nearly 24 years to reach a total of 1 million dollars. But that is without subtracting any taxes or any expenses that you will incur over 24 years and let’s not forget that inflation would make your 1 million dollars less valuable.
The reality is that on a salary of $20 an hour, you can only really be a millionaire at an old age, by living frugally and most of that precious resource known as time has slipped through your fingers. You traded all that time for money and it wasn’t even a substantial amount either. So again you ask yourself, how is it then that there are self-made millionaires and billionaires at such young ages. What makes them so different? The truth is they have a better equation than you. They have a way of understanding the money that you haven’t quite grasped yet.
The truth about money
Stop chasing money. In a capitalist society, the rules of the game are as follows: You are paid in proportion to the perceived value that you have, and the people that perceive your value they are the market, the consumers of the economy. The market is you, your friends, your family, your neighbors, your country people. You complain that football players are overpaid, but for players to be paid millions, there has to be a market for the football industry in the first place. People have to see the value in football in the first place for them to want to spend money on matches and merchandise and if the market is a high demand for football, guess what happens to the players who are at the top of their game? They are paid generously for it.
It’s not about how hard you work: the cleaner that sweating and tiring himself out every day is paid far less than the accountant sitting behind a desk. Why? Because the market perceives the value of what the cleaner does to be far less than the accountant. As harsh as it may sound, the cleaner can be replaced by anybody. It isn’t difficult to learn how to do his job and therefore the market will not pay him more than the accountant, the guy who spent years studying numbers. The guy who has saved his clients' thousands on their taxes. But even so, we just discussed how getting a job isn’t the right equation to amassing a great amount of wealth in a shorter period of time so then how can we increase our perceived value? What is it about people like Elon Musk or Jeff Bezos, that makes their perceived value so high?
The first step to this equation of wealth is quite simple. If you want money, solve problems. If you take a second to digest this statement you realize that just about all money runs from this basic premise, “If it solves a problem, money will be thrown at it”. If it’s a million-dollar problem, then the solution will make you millions. If it’s a billion-dollar problem then the solution will make you billions. Think about all the problems that site like Amazon solves, the hassle of going to a store, that hassle of having to wait weeks for delivery, cheaper prices, and so on. Not to mention all the other companies that Amazon owns and the problems that those companies solve. Jeff Bezos helped solve a billion-dollar problem and also awarded favorably for doing so.
If you’ve been chasing money, then you’ve been doing it all wrong. It sounds almost paradoxical but if you want money, it isn’t money that you should be looking for. You should be looking for problems and more importantly solutions to those problems and once you found that solution, make a business around it.
Wait, so that’s it. Just solve problems and money will appear? So I’m gonna have to create the next Amazon for me to be rich or the next Facebook or Google? You’ve got to be kidding me, right? I don’t even know how to code. I don’t even have the money to start something of that scale.
Hold on! your wants more going into old patterns of thinking. Start with a problem. Listen to the market around you. What are people saying they don’t like? What are people saying they wish existed? What are people saying frustrates them? What do people think is incredibly inconvenient? Is that a problem that you can solve and also is it a problem that is worth solving?
A Problem worth solving
The final step of this equation to wealth is finding a scalable solution to the problem. Your solution needs to affect a magnitude of people. Starting a restaurant that’s not scalable. You’re constrained to the local area and the footfall of that area. But a franchise now, that’s more scalable. Your solution is a piece of software then that means once that software has been built you can scale it infinitely online without needing to worry about things like production or shipping costs as it’s all done virtually. But be careful…does your solution require your time to generate money?
Let’s say you were a yoga teacher that charged $100 per hour. Congratulations, you only made yourself another job disguised as a business. There’s only a certain amount of lessons that you can feasibly do in one day and therefore your income is time-bound, but if you created an online yoga class that ran 24/7 with lessons you only had to create once. Now that is scalable.
Scaling your solution is critical here. So do not get lost on this point. Automation also plays an important role. Systems and processes will keep your business running like a smooth machine if implemented properly. If there is something in your business that you can outsource to somebody else or hire an employee to do it for you assuming it financially makes sense for you to do so then do it. Tasking yourself with everything is a bad thing as much as you may think you’re the best. There’s someone out there that can do a better job than you.
Once you’ve found a solution, it’s your job to make sure that the solution can be accessed by everyone in your market. It’s not about your ego and it’s not about what you’re passionate about. The market doesn’t care about your passions. So now that you have your profitable business running with the right systems and processes in place its time to move on and reap what you sowed.
There are two likely paths you’re going to face at this point: you either continue your business or cash in and sell it. This is the acquisition. The moment someone buys the solution that you spent years building a business around. This is Instagram being acquired by Facebook for 1 billion. This is PayPal being sold to eBay for 1.5 billion of which 165 million went straight to Elon Musk’s pocket and the countless other liquidation events that happen across the world.
This is where all the effort that you spend into building your company comes to fruition and if you choose to continue running your business, well, there’s a multitude of reasons for you wanting to do so. Maybe you think you can add more value to the company and sell it down the line for more than it’s currently worth. Perhaps that business runs passively in the background so you don’t have to do much to keep the wheels turning or maybe it’s a combination of these three things. Either way, you did it. You solved a problem that the market wanted solving and it awarded you favorably for doing so and so now I ask you…What was it all for anyway?
Your Money or your Life
For most of you, it was never about the money. Money is just a piece of paper, a number on a screen. Its value is only backed up by our belief in its value. From the very start, this was never about the money. Paying off the mortgage, buying your dream car, traveling around the world, never having to worry about your financial situation…it’s the FREEDOM that you were looking for. Your destination wasn’t anything monetary related. It was a feeling, a sensation, the ability to do what you want whenever you wanted without ever having to cast the thought towards affording it.
The most important lesson was never about the nature of money. It was about the one valuable resource that we all have…the one resource we will never be able to reclaim. Time. Is giving up a large chunk of your time towards a job that you probably don’t like worth it? Is your life settled on working, coming home, sleeping, waking up the next day, and repeating the same cycle till you retire? How many more hours of your life do you let slip through because of this pattern? Or perhaps you’re fine with that reality. Perhaps you have no other choice but to follow that path for the time being and if that’s the case there’s nothing to worry about.
The most you got from this post is maybe a change in perspective but there are those of you that understand the other side those of you that have the desire to never need to worry about money ever again. And so I feel the need to remind you. Stop chasing money. Chase problems and find a solution to those problems. This is the equation through which all money is found. If you desire liberty through never needing to worry about money ever again then let solving problems be the meaningful struggle in your life. Does it mean you’ll be happy at the end of the road? Does it mean you’ll feel fulfilled? Only you can answer that question. But if your struggle is meaningful then perhaps it’s worth pursuing.
It's important to come back to an original point that I made at the start is that most people will not succeed for various reasons. But the most important part is failing. Failing fast and moving on to the next thing and if you’re out there doing something that isn’t strictly related to business. But you want it to make money then asking yourself the question of what problems am I solving, could lead you to find ways of better monetizing whatever it is that you’re doing and that also includes a job and a career. If you can solve more problems and find more solutions at your place of employment you have something that you can use to leverage a higher salary.
In the end, remember to stop chasing money and start chasing solutions to problems.