Money is an IOU from society. A twenty dollar bill can be redeemed for twenty dollars worth of services or goods. Money is useful as it helps you stay comfortable, feel secure, experience things that make you happy and sustain or heal yourself during tough times. Here are 5 broad thoughts about making money.
1) Typically, you earn money by providing others services or goods that they value. People value goods and services that either help them make more money or help them feel better. People aren't completely rational, and that extends to how and what they value. They are willing to pay more for things they perceive as higher value and that could be influenced by a number of factors.
2) If you want to make more money, then provide more value - by serving more people or by providing higher value goods or services. To scale the value you offer, you can use technology or capital (to hire more people or invest in other areas). To provide something that is perceived as higher value, you should offer something that is rare or exceptionally better than other alternatives.
3) Who you choose to serve and how you negotiate the deal makes a difference too. Some people have more money to spend or are fairer than others.
4) When you invest (say, in companies or real-estate), you exchange your money for assets. Assets can generate money depending on how well they meet the criteria above.
5) It's important to consider how much of the earned money you get to keep. In most countries, you pay out a significant portion of your money in taxes and tax rates and policies are different based on how you earn that money.
It's as important to be intentional about how you spend and invest your money, but that's a whole other topic.
1) Typically, you earn money by providing others services or goods that they value. People value goods and services that either help them make more money or help them feel better. People aren't completely rational, and that extends to how and what they value. They are willing to pay more for things they perceive as higher value and that could be influenced by a number of factors.
2) If you want to make more money, then provide more value - by serving more people or by providing higher value goods or services. To scale the value you offer, you can use technology or capital (to hire more people or invest in other areas). To provide something that is perceived as higher value, you should offer something that is rare or exceptionally better than other alternatives.
3) Who you choose to serve and how you negotiate the deal makes a difference too. Some people have more money to spend or are fairer than others.
4) When you invest (say, in companies or real-estate), you exchange your money for assets. Assets can generate money depending on how well they meet the criteria above.
5) It's important to consider how much of the earned money you get to keep. In most countries, you pay out a significant portion of your money in taxes and tax rates and policies are different based on how you earn that money.
It's as important to be intentional about how you spend and invest your money, but that's a whole other topic.