Sunday, October 31, 2010

Understanding Money

This is a beautiful article about "Money" - What Truly "Wealthy" people know about money.

There are some excellent thoughts in this article and one of the aspects in that article which I want to talk about is the formula

Wealth = Value Provided by Y * Number of Entities that Directly Value Y

(Where Y is the product, employee or subject generating wealth).

The key aspect for wealth in this formula is the value that is provided. At an organizational level or a individual level it comes down to the same thing. If you want to make money you need to have something that provides value. At an organizational level it is the value of the intellect the organization holds. If the organization does not innovate and keep ahead of the intellectual curve it will fall away and stop providing value. It is same for the individual - if the individual stops learning and stops innovating and keeps ahead of his peers in his ability to provide value then his wealth disappears.Once there is no value nobody needs the organization or the individual and that's when all wealth - financial, mental and physical disappears.

The Number of entities that directly derive value will automatically grow based on the amount of value you provide to them and the bandwidth you have to manage them. When you provide true value the entities that seek that value tend to find you faster than you wish for.

So the bottom line is to introspect and understand if each and every one of us at an individual capacity and an organizational capacity provide value. If we do, we will automatically become wealthy - financially, mentally and physically. If not overnight it will happen in time.


Anonymous said...

Very Nice Thought... Thanks

Sarkari Naukri

Unknown said...

I hope that I will always provide value.

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