Money
Money is made only by creating value for the consumers utilizing your services.
95% of the world population trade their time for money, whether it’s a full-time, part-time, or consultant job.
As long as you work for somebody, you are trading your time for money. Bottom line – if you cannot work, you don’t get paid. The luxury you enjoy is not having to worry about managing a business and handling other activities – you simply deliver the work and get paid for the time.
On the other hand, business owners not only get paid for the time they invest, but they also get returns on their investments as profits. Even though it sounds nice, it has its own risks. The advantage of owning a business is that it can make money even if the owner themselves is not working, depending on how the business is designed.
If you never started a business and wanted to explore the internal workings of a business, the only way to do it is to start one. Don’t worry about if it is going to fail or succeed.
Now the question is, what to do, what about the investment, and where to start.
To learn or experiment a business, my recommendation would be to think of putting up, for example, a lemonade stand on a weekend, as it would be a great way to expose anyone to understand the concepts of business, at a very small cost.
Let us assume we are starting with a loan of $20.
Start with the things we need to set up a lemonade stand:
- How to put up the stall,
- How to attract customers,
- How to serve,
- What is the cost of each cup of lemonade,
- What we need to do the previous day,
- How to organize the whole day of sales,
- How long we will sell.
After one day of sales:
- How much money we got from sales?
- Did we make money or lose money?
- Can we pay back the loan?
- If we want to continue the lemonade stand for the next day, can we use the learning from day 1?
Disclaimer: Some states have a restriction on setting up lemonade stands and require an earlier approval from local authorities for clearance, so just be aware of the rules and handle as needed.
The wisdom you can acquire through this process will definitely be worth the investment.
I have dedicated a separate chapter to explain this concept: Entrepreneurship.
The money you make is not what you think you deserve, it is what the consumer is willing to pay for your services. But on the contrary, if you or your services are in demand, you can set your own prices.
When we come across a situation where we are underpaid for our services, we have a few choices: learn the gaps and provide better services; showcase to the customer the value of your services; or you might be in the wrong place rendering your services.
A few years ago, I had to borrow some money from a known source. I was returning the money in chunks and it took almost 3 years for me to settle the loan. When I finished the amount, the person who lent the money to me, asked for another big chunk towards interest. I didn’t expect this and I was in shock, as that was never discussed. Up until that moment, I have also lent money to others and never taken any interest since I was giving and taking in a known circle. This is the moment I realized, you cannot assume with money. You have to be explicit.
Ignorance is expensive.
In this experience, I learned what simple and compound interest is. Some lessons cost money. But I was able to negotiate and reduce the interest.
This led to 3 very important lessons:
Money is not free.
Money is negotiable.
Money will work & can grow by itself when rightly invested.
Paper money depreciates in value over time. An item you got a few years ago versus buying the same item now, has increased in cost over time. If you are holding paper money you have to spend more money for the same item now.
Money doesn’t grow on trees, but if you sow the right seeds, you can reap.
The way you can grow money is by utilizing proper investment options, such as property which can yield rent, shares or mutual funds which can yield returns, and/or create products which can produce royalties. Find the right investment options and continue to care for it, so that it can work for you even when you are not doing work and it can grow by itself.
All commodities depreciate in value, whether it is a car, phone or any item. On the contrary, we enjoy it. Be cognizant on what and where you are spending
If you are starting a business, try to work out ways to grow the business organically. Sometimes, raising money looks needed, but it does come with a COST – be aware of the effects.
Buy from Amazon – Print Copy
Buy from Amazon – Kindle Version
Go to “Headstream – DreamBigBuddy coding club”
Want to continue reading this book online?
Continue reading, Have Fun !
(Please don’t forget to purchase a copy of the book for yourself or as a gift to an aspirant)
Please help me to do my moral loan payback soon 
Investment gotchas:
- Money put in the bank – in checking and savings account – doesn’t grow. But it is a good way to limit spending by not keeping it in hand. The interest rates on those accounts may be less than 1% annually.
- Safe growth instruments – Bonds, Pension funds – have 3% to 5% annual growth + possible tax benefits
- Long-term investments for a medium and high growth – investing in property or gold
- Investing in shares/ Mutual funds may produce high gain or high loss depending on one’s understanding of the market conditions.
- Don’t blindly bet on luck to make more when you are trying stock market investments
- Very high risk – CAUTION – Some investments promise 25% or double or triple more growth in a very short time.
- Understand the risk of what will happen when you fully lose it.
- Some of the examples are unorganized investments plans, like bitcoin trading.
- Insurance – technically not true investment options, but there are 2 types: Term insurance costs less but has no returns and growth Unit-linked insurance plans will cost high but provides some returns.
- Understand the clauses clearly and use based on your needs
- Term insurance is a way to create a safety net if you are not going to be around to take care of your dependents.
Money = Choices
Money provides more options to choose from.
Do not waste time arguing whether money is good or bad. Money can provide comfort, security, and freedom, but it may not provide all the happiness. However, by not having money, it is guaranteed that life is going to be tough.
While money can buy happiness, it cannot prevent sadness.
Money is a world accepted form of legal tender to get things for the equivalent value.
The Stone Age is long gone. We are now in the Currency Age.
Money is required for:
- Survival.
- A safety net to handle an emergency situation.
- Retirement time – the age which we will not have enough energy and strength to do work.
- Exploration – Fun, Travel, Experiences, Family.
- You have shoes to fit all sizes – enjoy your size before you are in need of the next size.
- Humans by nature, are explorers, and the more we explore, the more we will be motivated to achieve new heights.
In the world, two-thirds of the billionaires are 1st generation, which means that the majority of the billionaires are self-made and didn’t inherit wealth from their parents.
Poverty is a lifestyle, not fate.
Being poor can definitely be changed if the right action is taken. Money is a resource, but that is not the only resource to become successful.
An idea has zero value until it makes money.
Talking is cheap if it is not combined with action that shows results.