Wealth Creation Tip: Where Does Money Come From?
The answer to this question is the third concept to understand. No matter what the income source is, all money is made by selling something. This is true even with investments. You buy stock and wait for the price to increase. Or you buy a house and make improvements to increase its value. This is also true of income from a job. You are selling the company your time and skills. When you make deposits to a savings account you are selling the use of your money and are paid interest. Even non-profit organizations and charities must sell. They sell the idea of helping others to the people and companies who contribute to their cause. Think of yourself and your financial goals like a business. Businesses do not make any money until they make a sale. And their sales (income) must be greater than their expenses in order to make a profit (wealth). It is the same for you. To increase your wealth, you must find ways to decrease expenses, increase income or, the best solution - do both! This post ...