I propose that one's wealth may be expressed as the following:
Wealth = time + money + power + happiness + risk
Where;
Time = The amount of time one has left in their life, and the amount of freedom one has to do what they want with that time. Time decreases if one works for another, has health problems, and as one ages.
Money = One's net worth including all monies, assets, property, etc.
Power = Amount of social, corporate, and political influence one has through relationships, networking, leadership positions, and friends/family.
Risk = Amount of risk one is willing and able to take, ranging from investment decisions to lottery tickets purchases.
Wealth may increase and decrease over time for an individual. It may also remain constant as various components of wealth grow larger and smaller. For example, many people trade their time for money through employment. Similarly, one can invest time and risk to achieve power, or may spend money to find happiness.
When it comes to money and power, is everyone equal?
Let's assume that you exist in a world where some people have no money, some have little money, and some have a lot. Let us also assume that you currently have some money, but would like more. I think it's safe to say that this hypothetical is not too much of a stretch.
Person A's money ≠ Person B's money ≠ Your money
Or
Person A's Wealth ≠ Person B's Wealth ≠ Your Wealth
Much like Conservation of energy or Conservation of mass, the total amount of money or Wealth in this world can not change, i.e. if more money is printed, it devalues the existing money accordingly.
Thus, for any time A and B, we have the Conservation of Wealth:
∑ Wealth (time = A) = ∑ Wealth (time = B)
For every action, there is an equal and opposite reaction. For example, if I buy a share of stock of a company, someone (or something) is selling me that share. If I bought company XYZ @ $50, and sold it at $70, another person is buying the share at price of $70. By selling, I increased the amount of money I have, and decreased the amount of risk I had. The person who bought the share decreased the amount of money and time they had (with their money tied up, they have less freedom to do what they want with that money), and increased their risk. It is an interesting thought to realize that even when the stock market crashes, each share sold is still being bought.
Alternatively, when one achieves a position of power, they deny others the ability to get that position. For example, if there is one management position available at your workplace, and you receive the promotion, your co-workers have now lost potential wealth.
How can I use this information?
In short, to get rich, one must take from another. Rather than pillage and plunder, we in modern society "take" things by investing our funds, by networking with others, and engaging in other civilized manners. When you get richer, someone is getting poorer. When you lose wealth, someone is gaining it.
To profit off this idea, one needs to find something that people are willing to trade that will increase your own wealth. As mentioned above, most people are willing to trade their time for money. If you have a small business, and you determine that it's profitable (or will free up enough of your time) to hire employees to advance your brand, by all means do so.
Corollary: If you find that you have accumulated a large portion of wealth, you should give back to those less fortunate and help make the world a better place.
Wealth = time + money + power + happiness + risk
Where;
Time = The amount of time one has left in their life, and the amount of freedom one has to do what they want with that time. Time decreases if one works for another, has health problems, and as one ages.
Money = One's net worth including all monies, assets, property, etc.
Power = Amount of social, corporate, and political influence one has through relationships, networking, leadership positions, and friends/family.
Risk = Amount of risk one is willing and able to take, ranging from investment decisions to lottery tickets purchases.
Wealth may increase and decrease over time for an individual. It may also remain constant as various components of wealth grow larger and smaller. For example, many people trade their time for money through employment. Similarly, one can invest time and risk to achieve power, or may spend money to find happiness.
When it comes to money and power, is everyone equal?
Let's assume that you exist in a world where some people have no money, some have little money, and some have a lot. Let us also assume that you currently have some money, but would like more. I think it's safe to say that this hypothetical is not too much of a stretch.
Person A's money ≠ Person B's money ≠ Your money
Or
Person A's Wealth ≠ Person B's Wealth ≠ Your Wealth
Much like Conservation of energy or Conservation of mass, the total amount of money or Wealth in this world can not change, i.e. if more money is printed, it devalues the existing money accordingly.
Thus, for any time A and B, we have the Conservation of Wealth:
∑ Wealth (time = A) = ∑ Wealth (time = B)
For every action, there is an equal and opposite reaction. For example, if I buy a share of stock of a company, someone (or something) is selling me that share. If I bought company XYZ @ $50, and sold it at $70, another person is buying the share at price of $70. By selling, I increased the amount of money I have, and decreased the amount of risk I had. The person who bought the share decreased the amount of money and time they had (with their money tied up, they have less freedom to do what they want with that money), and increased their risk. It is an interesting thought to realize that even when the stock market crashes, each share sold is still being bought.
Alternatively, when one achieves a position of power, they deny others the ability to get that position. For example, if there is one management position available at your workplace, and you receive the promotion, your co-workers have now lost potential wealth.
How can I use this information?
In short, to get rich, one must take from another. Rather than pillage and plunder, we in modern society "take" things by investing our funds, by networking with others, and engaging in other civilized manners. When you get richer, someone is getting poorer. When you lose wealth, someone is gaining it.
To profit off this idea, one needs to find something that people are willing to trade that will increase your own wealth. As mentioned above, most people are willing to trade their time for money. If you have a small business, and you determine that it's profitable (or will free up enough of your time) to hire employees to advance your brand, by all means do so.
Corollary: If you find that you have accumulated a large portion of wealth, you should give back to those less fortunate and help make the world a better place.
Labels: Pocket Philosopher
0 Comments
