The First Principles of Money - A Simple Tip for Earning More
What is money? Why was it invented? What purpose does it serve?
At its core, money is one thing: an exchange of value. If I give you X amount of dollars, you give me an agreed amount of value in the form of a product or service. Going further than that, it's a system created to make it easier to track the value that one person holds at any one time. Anything you own has a monetary value attached to it, because it tells you and others that at any point you could sell that thing for the amount of money that is agreed it is worth, or the value of stuff you could buy based on the amount of physical (or digital) money you hold.
But this isn't just a discussion about what money is, there are plenty of those. This is a discussion about how you can use this first principle of money to earn more and improve your life! To a certain point, having more money improves your life because it allows you the opportunity to buy things of value that give you security (a home, or not always being forced to work), make you happy (that car you've always wanted, holidays, etc.), and even allows you to share some with those who need it. I say money can improve your life to a point, but that's beside the point. The point is, that most people want more money, and based on the first principle of money, there's one sure-fire way to do it:
Create more value.
Why? Because the more value you create and provide, the more money the marketplace will give you in exchange for it!
How? Think of LeBron James or Cristiano Ronaldo, the better they got, the more value they provided to the market place both on and off the field, and the more money they got paid and continue to do so.
Sports is a great example and is an easy metaphor to understand: When Cristiano Ronaldo first started playing football, he was of very little monetary value to the football world, as most kids are when they first start out. But as he grew up, and he improved his skills, and developed his abilities, he became more and more valuable to each team he played for. As he got into the professional ranks, the same thing applied, the more value he provided to his team, the more money (value) the next club was willing to pay to acquire his services. Then as he became more and more famous for his on-field achievements, he became more valuable to brand sponsors. They then started to pay him more and more money to make an appearance for their company, in exchange for the value they would receive for having someone of his stature and fame and football ability as the face of their brand, both in publicity and in sales. It is why Nike give athletes like Lebron James and Serena Williams lifetime sponsorships; Nike is going to be able to sell products off their name alone for long after they leave this world, not just retire.
Now you may not be a 6 foot 8 African American Basketball future Hall of Famer, but it is the same thing for everyone; if you want more money, you must provide more value to the market.
How you do that is exactly how a Basketball player provides more value to their team: you develop and improve your knowledge, skills and abilities, which allows you to do more for your team, or your customer, or your employer, or your employee, or your business.
This is possible for everyone, this is not reserved for the 'talented' or the 'smart', everyone has the potential and the ability to learn, and to improve. In addition to this, information is abundant; there is a book, a blog post, a podcast, a youtube video, for anything anyone would ever want to learn. What is scarce is the willingness to go out and spend time developing, to go through the learning curve, starting out seeming stupid, or bad at something. I encourage you not to be one of these people - believe in your power to learn and improve!
If you want more money, however, you are going to need to figure out either; how to use the knowledge, skills, and abilities you already have to bring value to the market, or use the abundance of information available to you to improve, so that you can inevitably provide more value to the marketplace in the future. The quickest path is both options A & B: get super clear on what knowledge or skills you already have that you could leverage to provide value right now, whilst you get super clear on your top 3-4 most passionate areas and how they intersect, then you will discover where you as a unique individual could become the best at that one thing. This is where we get into Super Niching - the topic of the next post.
For now, remember this: if you want more money, you need to provide more value to the market, this can be achieved through leveraging the strengths you already have, as well as developing your knowledge, skills, and abilities to provide more value to a specific market in a specific way that is authentic to you.
Now that you have finished reading this, do two things for me;
Ask yourself; how can I provide more value to the marketplace with what I already have? What knowledge, skills and abilities could I maximise use of and leverage to create more value right now? Either through doing something, selling something, inventing something, or teaching something. And write down your answer.
Read my next article on 'Super Niching' so you can work out how you can be your most authentic self AND provide the most value to your most suited marketplace (and earn way more money doing it).
See you in the next one,