It is a widely accepted fact that school has failed in a lot of ways to help individuals achieve holistic success. But more glaringly is the silence of school on the money matter,and this, more than anything else is the cause of the financial debacle that's we are all in, and we all are going to experience.
So,in view of this,I'd be starting a series on this subject,and I'd try my best to look at lessons school didn't teach no one about money making.
1. MONEY IS NOT REAL.
This is one of the most important lessons I've learnt so far about money and finances. It is not real. That $10 bill in your pocket is fake. It is a fiat currency. All of the world's currencies are fiat -fake. The paper money in your hands is just a phantom. A figure of everyman's imagination. And this is why the rich don't work for money.
There is an economic law called Gresham's Law
It states that bad money will always drive out good money. Let me take you down history to understand this all important money law. Back in Roman times,people would clip silver and gold coins. Clipping coins meant that people would shave a little off the coin before handling it to someone else. So the coin began to lose value. The Roman people, being not stupid,soon noticed that the coins were lighter. Once they knew what was happening,they hoarded the coins with high silver and gold content and spent only the lighter coins. That is an example of bad money driving out good money out of circulation.
So you ask, "how does this apply today"? To know its present day application, you need to know what good money is. Good money is simply an object of possession with STABLE/INCREASING and INTRINSIC value. The key words being
1.STABLE/INCREASING VALUE.
2.INTRINSIC VALUE.
INTRINSIC VALUE OF GOOD MONEY.
Good money must have intrinsic value. What does that mean? Look at a $10 bill and ask yourself this question :would I buy a piece of paper, cut to this exact size and weight, for $10? What's your answer? I bet you would not! Why? Because the value is not in the paper, but what's printed on the paper... the paper is useless. And that is had money.
Now you go, are you saying we should not spend money again? Nope. I am saying that as long as there is no intrinsic value, and only what's there is the face value, then it is no good. As long as the face value is not decided by you,but by some higher power somewhere, the value will forever fluctuate, leading to inflation, depreciation and loss of value. That's why $100 would buy a car 100 years ago,while it will get you a sneaker now instead.
Another thing about good money is its stable/increasing value. Can you say that for the Dollar,Euro, Yen or Naira? Coming even closer home,SBD? Nope. Good money should not go down with time,but increase.
How can I apply this information to money making?
Good question. Use bad money to acquire good money. That's what rich people do. Get your own money printing mill. Use bad money (Dollars) to acquire good money (assets) that produces lots of bad money to cover your expenses. That's how to be rich in this new economy. Don't work for money, work for acquiring assets. Hustle to build and acquire assets. Then,ten years down the road,you will find yourself printing your own money (Dollars, Yen, etc) legally and with your government's backing.
I CAN BET SCHOOL NEVER TAUGHT YOU THAT!
Thanks for taking your time to read through this article, I'd be glad to see your comments and upvotes as I'll be doing other remaining lessons daily.