Saturday, October 18, 2008

Wealth Equation




Well, Everyone seem want to be wealthy n famous. before going after the wealth, how many of them do actually know the meaning of wealth ?

Wealth is actually what you left when you have no money.

The equation of wealth, Value X leverage is a dynamic balance which described as oscillation between two opposites. As our lives revolved around dynamic balance like yin and yang, female and male , day and night.


In this world , majority of the wealth creator did not start their wealth with money but simply their time which is F.O.C. and 10 basic values .

The 10 basic values are divided to 6 internal values which each of us already possesses them and 4 external values are the result of all money on this planet flows.



The internal values are :
1. Passions & Talents- is our core internal value which by simply help us to get a right focus on our talents and passions with our time rather than our weakness as we leave our weakness for someone else whom are have the 'A' to focus on.



2. Knowledge & network- the more knowledge you have , the more attractive you are. While knowledge is what you know. And network is who you know.
The right network can give you resources and magic to happIt simply make people we know tell people that we do not know about our knowledge and networks which help you to 2 steps removed. This will attract people who seek for our knowledge and network.



3. Character & Purpose- The best opportunity are not come from people who know speaking to people they do not know , but from people they do not know speaking to other people they don't know which is 3 steps removed.

Alot of wealth creators making their 1st wealth without knowing each others, but their reputation preceded them. Character & Purpose are what make you reputation in market. Character is determined by your conduct and Purpose is determined by contribution which is measure by what you give but not what you get.
The external values are :

1.'Fulfilling a Need' & 'Fulfilling a Want' are retail value.

-'Fulfilling a Need' is a commodity which mean where the money flows is largely a matter of price; the lower the price, the greater the flows.


-'Fulfilling a Want' is where money flow is not a factor of price but a desire of.



2.'Component value' & 'Investment value' are wholesales value.



-'Component value' requires money investment plus additional creation to deliver a return on investment which like the more they buy, the more they make.




eg; Ray Kroc made far more selling franchises for Mcdonald's
than by selling the burgers.







- 'Investment value' requires money plus timing to deliver a return.




eg; Bill gates would not be the richest man in the world if he
did not listed Microsoft as his wealth come from his listed
shares but not from his pay check.













As we know today , less than 5% of the money flow around the world moves as a result of the retail values and the other 95% moves as a result of wholesale values. In fact, no one become billionaire from retail values but moved up the ladder to 2 wholesale values.



Special Note :

Gross Domestic Price (GDP) of the world's nation exceeded $35trillion USD dollars a year.It is about $700 billion a week and about $100billion a day.

And it is about $4billion every hour and more than $1million every second.





1minute,$60million of new value has been exchanged for cash.

within 10hours, the entire net worth of world richest manwill be come and gone.

within a day, the capital value of the world's largest company will have flowed right by.






So what is actually money? And how hard can it be to make a million dollar if a million dollar just flew by that 1 second.

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