Can I Create Money? What is Investing Really?
Written by Roberto Swift
What if I told you there is a tree that money grows on. Would you want to find it?
There is a way to produce money from a tree but it's not in the way you think.
First it is important to understand that money is a means to an end -a medium of exchange. It is a tool for trading your time and freedom. It holds our economic energy in a container until we're ready to use it.
Second it does not take money to make money.
That's good news for those of us that start with nothing.
If you want things of a greater value than you currently have. you must produce more value until you have enough to exchange it for what you want. The ability to create value comes from education. While a college education produces a paper that states you are capable of provide value to the job market. A financial education increases the speed in which a person is able to generate value to others. In both scenarios the source of money comes from what you know not what you have.
For instance in Steve Jobs earlier twenties he was a co-founder of Apple, and he had a net worth of millions by the age of 23. He brought on an experienced Fortune 500 CEO, John Sculley--and three years later, Sculley fired him.
. After being fired started his second software company, NeXT, which was ultimately acquired by Apple--and later Jobs became CEO of Apple again. In 2005 Jobs said, "I didn't see it then, but it turned out that getting fired from Apple was the best thing that could have ever happened to me,"
As you know Jobs led Apple to become worth over 300 billion dollars. It is not unreasonable to say that his impact has been instrumental to helping Apple become the 2 trillion dollar company it is worth today.
The idea of investing, is to do something with the expectation of receiving a greater outcome. Some forms of are active and other forms are passive. Imagine you have a garden in your backyard, and you decide to plant a seed. Sometime later when you return you expect the seed to grow into a plant. Education is that seed. When you use what you know to create value to others, you will receive money in exchange for what you produce. Investors uses their financial education to speed up the frequency in which they create value.
It pays to learn.
Simply buying an investment with no understanding into what you are doing is gambling. You either win or lose. You may generate some money at first but over the long haul you will lose because this model is not sustainable. With a 50/50 chance at best you end up breaking even at worst you lose everything. Investing is not an accidental act or a lucky draw in the lottery. It's about minimizing your risk and maximizing the odds of success in your favor.
Investors who achieve this have a clear plan, an enter and exit strategy. We think long term over the life of the investment. The time duration depends on the length of time we expect to hold the investment. This could be over a short or long period of time. It all depends on the personal goals of the investor.
So, yes you can create money by investing in yourself. Start today by getting a free copy of our eBook Mentality of the Wise. We share 6 principles that will ensure you achieve long term success.