Monday, March 20, 2017

How to grow money

If you want to get and stay wealthy you have to accumulate assets. It does not matter if your chosen path is the path of banker, politician, businessman, sportsman or any other way, you still have to accumulate assets to get and stay wealthy. Invest your money or the money of others, and keep control over the assets you gain.

Pull out your money as soon as possible and invest in another asset. Repeating this process will make you wealthy as each asset puts more and more money under your control. Control and cash gain is what makes you wealthy. You can own shares, but if you have no control over dividend payments, you can stay as poor as you were before. You can own the shares but if you do not control company’s actions, you don’t know if the price of your shares will go up or down.

Ownership does not guarantee you income but the control over the asset is vital. Once you are the owner, make sure to install control mechanisms to keep the control for yourself. I learned it the hard way when my former colleague and I started our first company. I put up some money, my colleague put up some and his father invested in our enterprise too. His father did not participate in the business operations, he was just the owner and his shares were controlled by his son.

We had a deal allowing every owner to have access to company bank account to control the transactions. However after counting the share in the company, my former colleague decided that
he has the biggest share and only he will have access to the bank account. Although we had a written deal, he “wiped his ass with it”. Having a signed deal and having power to bring the other sides to fulfill the deal are two different things.

The same is applicable to academic education and personal experience, which can tell you very different stories. I have PhD. in economics and I found out first hand that there are many things you will not be taught in school. The most important benefit of academic education is the social network you create while you’re at school not the knowledge you will get there. Let’s look at some common myths and truths about wealthy people and money.

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