Wealth generation formula doesn’t start by only starting a business. You have to think what kind of business are you going to start.
In today’s economy, we have to think to impact millions. Remember, to make millions you have to impact millions. If you are doing the job, your wealth generation formula consists of two variables. Number of hours invested in a task x your hourly rate or intrinsic value of your skills. If you are a skilled technician. Your hourly rate would be the around $10 per hour. If you are a skilled back end developer with a number of years of experience. Your hourly rate may go from $40 to $60 per hour. When you want to multiply that hourly rate with the total number of hours worked in a week. You will get your weekly salary. Some further calculations may bring you can accumulate monthly or animal salary.
Consider both of those variables in the equation of wealth generation formula of the person doing the job, or self-employment. The first one is hours invested in doing work, the second is the intrinsic value of those hours. If you want to increase the number of hours, the first variable. It has upside limit. You can go no more than 24 hours in a day.
Moreover, for a hypothetical scenario, take an example. If you can work 24 hours daily without having a sleep, with closing doors of the washroom on yourself, taking no food consistently for 24 hours and doing the work for a whole month. With an hourly rate of $10, how much income will you generate in this hypothetical, nonsense and impractical scenario? Even if that is impossible let’s calculate there are 24 hours in a day multiplied by 30 number of days in a month. 720 hours would be the answer. Multiply that with the intrinsic value of $10. It will get you the $7200 in a month which is simply impossible.
Comparatively, consider increasing hourly rate by polishing skills through education, online courses and practical implementation of years after years. If that skills intrinsic value shoots by 50%. That will be $15 per hour.
In this situation, if we take a real fact of working no more than 160 hours per month. Your monthly income will go to 160 hours x $15 per hour, which is around $2400 a month. Which again seems to be very hard as increasing 50% value of intrinsic value is not that easy enough. As some Ruby Developer.
So what should be a good wealth generation formula that can accelerate really fast? The answer is described in the title.
Additionally, now think of the wealth accumulation formula of a business, impacting millions. I’m not talking about the local franchises, retail stores, delivery services types of businesses that limited locally. Also, neither the job nor the self-employment is the point of discussion here. I’m simply talking about the ideology of impacting millions.
Get connected with millions and sell them only $1 worth of product, you will be a millionaire. Consider both of the variables in this type of wealth accumulation formula.
The first variable is ‘impacting millions’ that has no upside limits so if your audience is 1 million you can increase it more.
Now consider both of the variables in the above-mentioned wealth accumulation formula. The first variable impacts the second variable is the dollar value of the product. Again there is no upside limitation to anyone of them.
You can increase your audience from 1 million to 10 million. If you’re still selling only dollar 1 worth of value product to those 10 million, you will get 10 million.
I know that seems easy and one of your employment-minded people may criticize the idea but the fact is, it is the fact. This is how Facebook impacted billions, this is why WhatsApp connected billions, this is what Google did. So in an actual scenario, if you have impacted 10 million and tried to sell them only $1 value of a product and your conversion rate is 10%, again $1 million will be out there.
Look attentively at the second variable of this equation and that is the price of the product. So if you only increase the price of that product from $1 to $1.5. You will see the impact in your wealth accumulation formula with a big number. Increase $1 to $1.5 and again ask 10 million audiences with a 10% conversion rate to buy that, you will get 1.5 million dollars. Is not that amazing? Also, conversion rate doesn’t have any upside limit.
Doesn’t that make sense? isn’t it possible?
This is how billionaires become billionaires. Think about VISA, examine MasterCard, recognize Amazon. They all are doing one thing.
Seekers! that is not easy. If that was easy everybody was doing that. Everybody was a millionaire. They are not because of their limited belief systems. They are there because of their perspectives. Formal education, family expectations, and social pressures forced them to go and do a formal corporate job in a multi-national with some sexy women and chickens rolling around.
Years later you will automatically understand what are you not going to understand now. Mark Zuckerberg isn’t fooled. Adam D’Angelo the founder of Quora is not the shit. That guy was going was doing the job in the world’s one of most awesome companies Facebook with an environment you may even lick for. He started his own product with two wooden benches and four computers in a very tiny room. That guy is impacting millions now. Even if Quora didn’t announce it’s monetary policy yet. But once they will announce, millions of dollars will be in the pocket. Thanks to billions of their audience.
Those guys including Tim Ferris, Jason Fried, MJ DeMarco, Adam D’Angelo, Mark Zuckerberg, Bill Gates and Steve Jobs knew the rule what in unknown to the majority of this world. This is what I am trying to make you understand.
Once a food chain accounced $6 worth of chicken free in exchange for an internet coupon. Later, there was a rush in front of their outlets. A bunch of people seeking for that FREE chicken was stood up in lines for hours. This experiment named as chicken bucket experiment.
Have you ever wondered what is the mentality of kind of people standing in line in front of those stores? They all treat their time as that has value, zero.
You can see this thought pattern in all people living mediocrity life. They never respect their time. Time-to-money ratio doesn’t have any worth in front of them.
There are a number of minds searching free resources, digital assets, site templates, online tutorials all over the internet just to collect them. Hours spent on those searching costs them even more than their original costs.
This mentality, perspective, and belief system lead to another workaholic and mediocrity disease, job slavery. Don’t ever listened about that? Let me explain.
One of my friends spends money on lavish and expensive items and just to pay for those items later he goes to work more hours. Buys expensive and nonnecessary items again and works, even more, to pay back to those items and the cycle continues. This is called job slavery.
One good habit of really smart people is they spend less than of their real worth. In effect, they have to work less in order to pay back. In other words, they live a life much lower than their real status level. In effect, they actually buy free time which is actually the most important asset of life. Amazon best-seller millionaire next door describes that reality in greater detail.
The day before yesterday, I was reading Quora while one of the questions got my attention, titled ‘Do you know someone who is a millionaire and doesn’t show anybody’. The answer was amazing and inspiring enough. That explained how really rich people come out of job slavery and spend less than their real worth. That guy had a net worth of $15 million. He was wearing simple jeans and a T-shirt and had a 4 seater, Porsche. Both pictures were taken by his own camera. Only two to three people were actually aware of his real worth.
Some days ago I hired guy online to do a video work which I could do even myself. What would you do if you were in my shoes? Was I dumb? Have I wasted money? I simply bought free hours by buying his work hours. This is an actual example how businesses and rich-minded people do. They hire more smart guys than them, instead of doing everything in their life themselves.
You are the best person who can treat and teach your children. Will you do that in actual? Or you ask them to go to school? Obviously, a school would be the better choice. It saves you time and that time will become money when you invest in your own activities.
If you want to know a real genius inside a body. Don’t ask them about their job, lifestyle, residential area formal education. Simply ask them ‘What do you do in free time’. That innocent question will reveal the real man and you can definitely predict the future of that person.
Show me a poor and I’ll show you how poorly he treats his time.
If you have to buy an SSD worth $100, you have two options. Either to go market and buy in $100 or order on phone and pay an additional $5 for that. ‘Going to market’ option itself have invisible cost included inside. Count on fuel, add parking charges, think about the time invested. On top of that, estimate your time invested in terms of money. So if you go to the market and invest 2 hours committing and your per hour income is $5 then it costs you 5×2+100=$110. Yup, with an extra burden of fuel and parking charges. What your smart decision would be?
From successful to dumb persons, everybody has the same amount of time per day. How you spend makes the real difference. Chatting with friends, watching TV for nonsense emotional dramas, surfing youtube for Americal Idol, scrolling facebook mindlessly for hours are activities as options. That will make you dumb. On the other side, that same time can be used to invest in your mind, reading books from great authors, thinking how can you impact the society positively and producing great content. This is what kind of personality you want to be, successful or dumb?
If you are kind of person who seeks leisure time to enjoy with nonsense activities. I suspect in the kind of personality you are going to become.
Years ago I read this statement somewhere ‘Genuis become a genius in times when ordinary enjoys leisure’.
There is a good difference between formal education and self-education. Both represent a perspective and mentality, both need two different belief system, they part people into different categories. Formal education is what we get outside in, self-education is what we get inside out.
From different forums and social media, I receive messages from well-educated graduate people asking me to guide them about their careers and what work should they do in the life to become a successful person. sometimes I wonder their mentality, I wonder what that University or college has given to them? No confidence, No vision, No goals?
If you are not a comedian, actor, athlete, pro-footballer or don’t have some good physical skills. Your path should be to learn non-physical, mind related activities first. Here I would point out practice makes perfect
You can’t become a good chef by only reading cooking books. You must have to practice, invest time in applying those concepts.
Read books, blogs, and articles regularly with a burning passion of deliberately practicing that. From there, you have to practice every bunch of advice.
If you go to Quora scrolling mindlessly answers and answers and don’t practice them in your real life you won’t be anywhere.
The majority of the people forget a good amount of information in only one day, what did they read yesterday. Only 10 to 30% of information remains in our minds. So what’s the best practice would be? Read to learn and remember by practicing. Start practice for at least 7 days as after reading some content.
At this stage, I would highly recommend the place where do you buy books from. It’s Amazon Kindle. There are a lot of reasons to buy from them. First of all, there is a big community around there which recommends the book after reading. So you can read reviews before even purchasing. Check what book has very good reviews in eyes of the society. That will help you imagining an overall idea about the book. On top of that, you can read some random pages and see the content.
If you are using some smart device, you can download your books in an application named Kindle which is easily available for your desktop, Android, and iPhone devices. Using this strategy, you’ll have your book wherever you go. If you are waiting for someone, in the line of some long row, or doing some relaxation in a park, you can take out your smart device and start reading. You don’t have to take your physical version everywhere.
This application has bookmarks system, highlighting functionality, and awesome Cloud syncing. So for example, if you are on page number 143 of a particular book on your Android and close the application and open your PC version you will be on 143 page automatically. Also, this digital asset is saved forever.
The best investment you can do is on yourself.
Another place to learn things would be to join seminars. Make sure those seminars and events are for education purposes and not for money making purposes by some so called professional guru who speaks on every topic.
How to know either some seminar worth attending? Is it bad or good? Check pricing first. That should not be too high. Also not too low. Why? Here it is.
Some weeks ago, I saw an online advertisement that had a huge fee with title ‘Blue Ocean Strategy’. I was wondering why people go to this type of Seminars while the book even from the original author of ‘Blue Ocean strategy’ is available on Amazon at a fraction of the cost. Why they join even with that high fee seminars?
Those people need everything in a hurry. They don’t want to invest their mind in the processes. Stories, over-night success, get-rich-quick events are what they are really interested in. They don’t want to listen how a successful person became successful. They just love to listen to stories Reading a book is kind of process and joining the seminar is kind of event. Love processes behind the events. Get out of mediocrity thought pattern.
Another sign to refrain from a particular seminar is free or really cheap priced one. These often lead to upsell and inject you information that forces you to buy some another big product.
A week ago, I was attending independently organized TED event in my city. That event was very inexpensive and I was wondering TED normally charge a high free for their events.
Some of the big talks there was actually a self-promotion infomercial from some big NGOs of the country.
Another thing you should make sure is, that seminar lectured by some actual practitioner. Not by a professional self-called guru who speaks on every topic the organizer has handled him.
Again your perspective and believe system will make the difference here even after education. If you are getting an education, reading books and attending seminars with consumer mentality you will be working IN THE SYSTEM. You will see everything from the eyes of the consumer, you will try to increase your per-hour value by attending that seminar. Again will lead you to mediocrity life and job slavery.
If you get the education with producer mentality you really get a different perspective. You will work ON THE SYSTEM after getting that education
Your perspective and belief system work everywhere. Let me give you a real definition of genius. They are the the life-long learner. They take the time to read books.
I have subscribed to gates-notes which is a note-taking and book-reviewing blog from Bill Gates. He has a habit of reading big minds consistently. If Bill Gates do that regularly. Where are you and me? You know why does he do that?
“Self-education is, I firmly believe, the only kind of education there is.”
― Isaac Asimov
Down the road, at the age of six around, I was walking to purchase a pencil to be used in my school. I went to a shop and asked shopkeeper ‘How much this pencil price’? He said 1.5. I thought ‘usually that pencil costs more than he is asking for. That may be some copy of the original’. I moved to another street, bought that same pencil for 1.75. While coming back to home, that old guy called me after seeing that pencil in my hand; asked ‘How much did you pay for it’? I said ‘1.75′. He asked ‘Why didn’t you buy from me while I was selling at low cost?’. I was speechless and stunned, had no answer. Period.
In fact, this is how the psychology of human minds behave and social perceptions work. This is how they modify our decisions. Society thinks expensive equals to quality. They purchase expensive items from luxury shops that have very high rental expenses and more than enough per month overhead expenses to run their business. Pricing is an illusion. In fact, pricing builds the brand.
Now change your perspective to 180 degrees, wear a businessmen shoes and think how can you implement that strategy into the business you are in. What inexpensive stuff can you sell with 1000% profit inside an awesome showcase, having a high-intensity light on it?
Brands use high pricing to make you feel you are privileged, previous, and belong to the upper lavish class. You purchase from them. They actually win, you feel a win.
Come out of your apartment. Have a walk around the streets; watch shops selling multiple consumer items and see how are they implementing the same strategy of ‘expensive equals to quality’.
In a big mall, at an event, this year. I was walking around with some of my friends while I saw a SELL inside a shoe store. Where discounted prices were written on the backside of shoes with an electronic printed ‘discounted prices’ sticker on them. I was browsing one by one when I shocked by seeing the price of shoes with 50% discount and discounted price 1200 written on that. As per my calculations. Their original price should be 2400 then. Unfortunately, one of that brand employee had forgotten to remove original price from that specific shoe.
Amazingly, that was 1400 instead of 2400.
Over time, you start to learn a lot of things and add skills to your personality with no specific reason and get bored. At the same time, you get some opportunity to apply those skills and get a reward. Before receiving that opportunity, a number of people get frustrated and they feel there is no reason to learn that enough. A rare quantity pass that time and win. This is the borden-driven approach to life.
Sometimes, you take challenges higher than your skills. You try to complete that challenge and fail. No results. Again get frustration. Never get back on track again. Challenge-driven approach, you can name it.
In between both of them, there is a sweet point called ‘flow’. That flow says you should take challenges little bit higher than of your skills and try to improve yourself while working on the challenge. This only approach makes the life interesting, colorful and happy. You can find examples of this approach from your past. You simply don’t know the name of it. You used it many times before.
Once one of my expected clients asked me ‘Can you do heuristic evaluation?’ I replied ‘Yes! I can do that’. While I never did that before. They accepted me as their contractor. I started, completed, delivered, client satisfied, wrote me 5-star feedback, and the client got repeated. I learned a lot, happier with the learning curve and bucks I got.
This is the challenge-driven approach to life. That makes life interesting, learning and happy. Getting bored? Seeking for interesting ways? Try this once. Never wrote a story? Take a pen; start to write; see the motivation coming out of you. Something else? OK. Go out try to talk with some stranger, for no specific reason. Get out of your comfort zone.
In the meanwhile, you will start to feel some colors are automatically filling in the blank canvas of your life. You will get smarter day by day. Those days will change in months and years. When you will see back after years to this point where you started to implement that simple technique. You will thank the day you started. The goal is to become somewhat better before yesterday. The mission is to not remain the same person even a single day. This is how motivation works. This is what differentiates average people from smart one. This the first step to come out of mediocrity. Don’t believe me? Try once.
I personally tried it many times. The story shared above was one of the examples of that simple technique. Trust me, you will change, and get the reward. My client got repeated once more.
Their name was Stanford University.
Most fun part of the story was, I even never heard the word ‘heuristic evaluation’ before accepting the project.
When an innovation allows everyone to use that innovation and letting them start to make profits, without any monetary costs, is called social innovation in my perspective.
Why take that social innovation path? Here are some good reasons.
You will feel good as a changemaker. That allow you to make passive income in terms of subscription and ad fee. Progressive development? Yes, that is another part of that. i.e. you can work on your innovation/idea for next 10 years and develop and develop it’s features more and more.
Recognition will be on your feet. Passive income will allow you to enjoy earning even when you are not working, allow you to visit countries, socializing more, investing time in activities that interest you more.
People will respect you more. As you will allow people them to improve their lives, you will become a big inspiration for all of them.
A big community will talk about you. People will praise you and you will get motivated. They see themselves as their future self. Whenever someone gets the praise he gets motivated.
Passive income in another part, that will take care of fixed monthly expenses. Your time will be free, to be used in more purpose oriented life. Poor remains poor because he remains in the routine to fulfill his basic needs and fixed expenses. Your free time will be used in thinking more and do interesting activities.
People are in need to improve their lives. They are seeking for ways. They will use the system you will make. At some time in past, you were at their level. You struggled without enough resources and done that. They will get inspired by the way you did. you have done much hard work in making that system that will teach you to respect your time and use it efficiently.
Whatever you do or whatever you are. Think about apps, portals, massive delivery of the services you do. If you are a teacher, instead of teaching 20-200 people in a class and wasting your life to teach that one subject every year. Think of delivering that education to even 20,000-200,000 people. That will be back you in bulk.
Think about systems instead of customized services everytime. They are doing that. You are using that. See all big companies and learn how are they behaving? Have you ever noticed why every other entrepreneur thinks about apps, portals, subscription based services? They are using you because they know the impact of their innovation/idea on society and how they will get paid back.
Whatever you start to think. Try to make your idea with some socialization included in. That will pay you back. This is the internet economy.
Think about social innovation.