Writing a book is a journey, and it changes you as a person.
After completing my new book, Money, I have never felt more inspired, more excited by, and more appreciative of wealth and the system that makes it possible. I’ve learned so much, and I don’t mean throwaway facts like “Only 8% of the world’s currency is represented by physical money”, or “9 out of 10 of all US bills have at least a trace of cocaine on them”.
I mean life-changing, valuable lessons, like my formula for wealth, and the most important abilities you need to attain money, and why no one should ever feel guilty about wanting more.
These are the lessons that EVERY entrepreneur should have ingrained on their minds, so here are my top 5 takeaways from having written Money.
1. Money is neutral, but reflects the person spending it
Some claim that “money is the root of all evil”, but if I make just one lasting difference with my life, I’d like it to be smashing this outrageous, short-sighted claim to pieces.
Money allows people to do good things or bad things, and works as a reflection of the intentions of the person spending it. It’s like a kitchen knife: a chef can use it to cut up vegetables and cook a delicious dinner, or a maniac can use it and get locked up for life.
I have a good relationship with money, so these days I tend to have a positive view of it. I see Bill Gates raising tens of billions of dollars for philanthropic causes. I know that it is the root cause of curing diseases and the founding of many universities. I notice Progressive Property employing staff, the taxes we spend, the people we serve, and the fact that we give a great deal to charity, including all the profits of my new book Money going into the foundation I am currently setting up.
Back when I was poor, it was a different story. I tended to see greed, corruption, and people using money solely for themselves and not to serve others. When I saw a person driving a Ferrari, I tended to think that they had gained it through dishonesty or theft – which is ironic, considering I drive Ferraris, these days!
Money can be good or bad, depending on who is spending it. Once you become the person you want to be, money is a vehicle you can use to express your values and the person you are.
2. To MAKE money you must learn to MANAGE money – and manage yourself
Despite the neutrality of money, it evokes powerful emotions in just everyone. If you haven’t read the debates that often rage on my Facebook page, my community’s opinions range from folks with a great relationship with money who love making more, to those who believe that capitalism is evil, that big businesses should be taxed more and that everything money does is bad.
As an entrepreneur wishing to attain greater wealth, we know that our feelings need to be kept in check. A successful entrepreneur must develop self-control and an understanding of both their positive and negative emotions. Fear, guilt and envy related to money need to be managed, as well as avoiding the blind pursuit of more, more, more.
The key to making more money is not only managing yourself, but learning to manage money itself. That’s why, according to the non-profit National Endowment for Financial Education, a shocking 70% of lottery winners go broke!
People who are used to managing smaller amounts of money or are perhaps even struggling to make ends meet often have no idea how to manage large lump sums of cash. Such a massive lifestyle change means that, not only will many lottery winners know nothing about managing millions of pounds, but will also struggle to manage themselves when faced with the world of opportunities that become available to them when they suddenly become rich.
Alternatively, if you give money to someone who knows how to invest, understands compounding, knows how to grow a business and looks to solve humanity’s problems, then they’re more likely to take that multi-million lump sum and make it grow.
A great entrepreneur from any background will educate themselves on economics, on finance, on capitalism, on the history of money and on currency, because the first step to making more money is learning how to manage it.
3. Attracting money has a FORMULA
Money is flow, movement and energy, and it never stays still. It must be given free movement to grow and compound, so hoarding it will rarely benefit anyone.
However, while I was writing the book Money, I had a “EUREKA!” moment: I came up with a formula for attracting it to you.
Value + Fair Exchange x Leverage = Wealth.
The first part of the formula means that you will be remunerated equally to the Value you offer society. By giving more value to humanity and serving them effectively, you immediately become more valuable to the human race and over time can even help it to survive, thrive and evolve.
However, there must be Fair Exchange, which is the next part of the formula. If you under-charge for the services you provide, you demean your own value and are more likely to fail to make a sustainable profit margin. Alternatively, if you over-charge and you fail to give people enough value for how much they have paid, then people will complain, damage your brand, demand refunds, and ultimately disrupt your wealth.
The final part of the formula is Leverage, meaning that the more customers you have, the more followers you have on Facebook, the bigger your community and the larger your market reach. The more global your reach becomes, the greater your wealth is likely to become – but only if you have balanced your Value with your Fair Exchange. If not, you may be scaling too quickly, which can damage your company if you are not prepared for the increased demand and the greater exposure.
4. Increase speed and reduce friction to make more money
The speed and ease with which money can be transferred has increased and evolved over time, because money loves to flow with fewer and fewer restrictions between sources.
Let me explain.
In the early days, money could only be transferred at the speed a person could walk or a horse could gallop – however fast a physical bill could be taken from one place to another. As technology has advanced, though, the efficiency with which this can be performed has increased, first with rail, then the airline industry, and now with fibre optics travelling at 99.7% of the speed of light. Online sales are happening much faster than physical sales ever have before, and deals are being closed between entrepreneurs and companies on different sides of the globe via instant transfers and transactions.
Restricting the friction and increasing the speed of the flow of money passed between you and your customers and clients. If you embrace new technologies such as Apple Pay and PayPal in your business, you will tend to attract more money into your life. If you strive to ensure that your webpages load quickly and smoothly – 0.4 seconds to load a page rather than 40 seconds, for example – customers and clients are more likely to stay and complete their transactions rather than bouncing away and finding someone with a more efficient system to solve their problems or ease their pain.
Ask yourself how you can increase the flow and decrease the friction with which money is passed to and from your business. The faster it moves and the fewer obstacles that are in its way is guaranteed to affect your bottom line.
5. The vastly wealthy are pressured to do good with their money
Let’s end with a bolt of positivity: those with the most wealth tend to be persuaded by society to do good things with their money.
One trend that the ease of global communication via the internet has brought about is an increased need for good PR. Information about companies and people is far more easily accessible now via the world wide web, which makes them more accountable to society’s opinions and desires. That’s one of the reasons why companies perform more philanthropically and offer more to charity now: because it serves society to do so.
Capitalism, by and large, is a fair and efficient system for rewarding merit, and in the 21st century it is doing better things not only for the individual who earns it but for the whole of society. Those with the most wealth such as Bill Gates give away billions of their share to worthy causes, because it has become a societal pressure to have them do so. Society does not want incredibly rich individuals to solely serve themselves but to serve the world too, so society and the internet work as balancing factors, revealing murky practices and extreme inequalities and helping to balance out the good and bad done by large corporations and rich people.
And charity and philanthropy are not the only benefits of huge wealth: employees of large businesses receive income and more comfortable lifestyles, and wealthy people fuel the economy by spending as well as earning. However, if these people are overly greedy or overly evil, overly capitalist or overly dictatorial, society tends to redress the balance.
Other thoughts on money
Money is a subject I could talk about for a lifetime, because it says so much about people as individuals and as a collective. The potential for the good it can do is endless, and the more you learn about its nature, the more you are likely to earn.
I’d love offer you more of the insights I’ve researched or concluded in my book Money, but where’s the fun in that? You’ll just have to buy it and read it for yourself.
Money isn’t out just yet, but it’s available for pre-order on Amazon. You can find it here
What do you think of these 5 takeaways? What do you have to add to the conversation? Do you agree with me that money is a neutral force, or is it a force for good or a force for evil? Let me know in the comments or join the conversation on Facebook!
You can pre-order my book Money here
Read more about finding equilibrium in business here
Thanks for reading and remember: if you don’t risk anything, you risk everything.
"If you don't risk anything, you risk everything"
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