Thursday, October 11, 2007

money formulas

In general concept of money is completely misunderstood. i remember siting on a plane with someone, i think he was from NYC, he was older then me and the reason we started to talk was a book i was holding - Reminiscences of a Stock Operator . we talked about the money i was making at a time in stocks, percentage was good but on the low sums i had substantial amounts of the speculation revenue went to the brokers. i proudly explained him that since i day-trade and doing large amount of trades i will be getting a discount for orders. his answer was astonishing. it is for suckers he claimed. the only one making money in such setup is the broker. he gets payed wherever u win or loose. what you should do for small sized speculations is options. it allows you control over larger amounts. i was a bit insulted by his claim but the conversation went on. we started to talk about money. it was the day i`ve learned that banknotes are not money. as simple as that. they are obligation to pay certain amount of something (exactly right) for an exchange of the deed by certain bank. silver and golden coins moved to paper banknotes and money system was switched by obligations.

Revenue stream = energy stream

On higher level it makes less difference what you accept for exchange, thought, banknotes or gold - all of those valuables worth exactly the amount you are willing to exchange them for. Basically the exchange always comes for energy in it`s form or other and it means that the most valuable thing is energy. Energy moves in streams, as broader your stream is more energy comes through u. it toes not necessary means that u can control all of it or then u can make the right use of it but when we look at the stream there are 2 main issues that we can file under "control":

how to make it grow?

how to make best use of it?

Issues of control are in general connected to knowledge. if u know what something is and how to operate it - u control it. This principle also applies with the money.

When you want to increase your energy stream you are looking for 2 options with combinations of them, making a stream broader and making it`s genesis more diverse. both things are important since in the end your aim is 2 have redundant (n+1), scalable, robust energy stream. I`m not getting on how 2 make one since it is covered all over, basically you need to do 2 things, know more and communicate more about it and in the end you will have more energy flowing in your direction. That`s by the way based on another axiom - Energy outflow generates energy inflow. This axiom is also a bases for communication cycles. If it wounds strange consider this. Can you get payed for a best job you have done if no-one knows and agrees to your work? you can not. Energy streams are based on communication so in order to make more revenue - communicate more and you will get there. Now i do not want to be taken literally about this and being accused that mid night talk about desperate housewives did not brought any income ... .

How to make best use of it covered under financial education. it is explained pretty simple and well in "Fathers". You need to understand the concepts of actives and debts and make sure that the part of your stream that goes to actives is growing. You do that and you will be fine.

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