Tuesday, September 22, 2020

Money is the receipt for the value you add to society


I find that the biggest obstacle that people have to reach their financial goals is their thinking (at least it was for me). In a free society the only way to make money is to offer something that is of more value to buyer than the other things they could purchase with the same amount of money.

So this naturally leads people to think about the question, "What do other people want?" What needs or desires can you uniquely fill? When you add value to their life in such a way that you fill this need or desire they reward your efforts with a receipt, money.

As a business owner this is pretty straightforward and it even applies as an employee. An employer looks into the world to determine what the needs and desires are and they hire people to complete parts of what is needed to fill those needs and desires. So every employee sells this part of the value society wants and the company then collects all the parts and sells the whole value to meet the needs.

They phrase I have come up with that has helped remind me that money is nothing more than an indicator of how much value I am adding to society. When I look at it this way it becomes clear what I need to do if I want to increase my income, add more value to society.

Does this mean that when you add value to society you will get more money? Not necessarily. A mother raising her children adds a huge value to society and doesn't get paid for it. Often when people start a business they will add value to people's lives for free to get experience and develop testimonials.

I find it is more the attitude of adding value first, making that a habit. Once this habit is firmly established then start focusing on collecting receipts for the value. Then the money becomes nothing more than the scoreboard for how much value you are adding, or in other words, how many lives you are blessing.


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