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Friday, 1 November 2013

Understanding the system of money


Filed under: Personal Finance |
I always say, very soon the middle class will vanish and you will either be rich or poor. And that is why you need to take control of your personal life, finance, business and investment. Taking control of these areas of your life requires that you have the knowledge of money.
The first thing you need to understand about money is; what is money? As defined by Economists; money is anything that is accepted as a medium of exchange in a commodity market.
During the agrarian age, farm produce, fish and animals were accepted as medium of exchange. In the industrial age, gold, copper and steel, artistically carved into coins were accepted as a medium of exchange. When they were becoming too heavy to be carried around in bulk, banks notes were introduced. But in this information age, those who are still seeing money as coins and banknotes are probably left behind in the industrial age.
In this age, it is important that you understand the system of money because money flows through its own very system.
Everything around is a network of system. The sun knows when to rise and set. The moon knows when to light up the sky. The rain knows its season. And so does the snow. These elements obey the network of system in the universe as designed by the creator—God.
The human body is a network of system. You do not need to press a button to jumpstart your nose, eyes, ears or mouth. There is no special button designed on your body to help you regulate the pulse of your heartbeat. Your body is a network of respiratory, circulatory, nervous and what have you systems. And they drive the entire machine.
Your car is a network of system. When you turn the key in the ignition, it will send a message to the battery. The battery will send its own message to the engine and whatever happens in-between puts the car into motion.
Everything around you is a network of system and so is money. When you don’t understand the system of money, you will be working hard to make ends meets.  The system that multiplies money was designed and categorized into four platforms. The platform you choose to operate from will determine how successful you will become financially.
The first platform is the employees’ platform. On this platform, you are just a tiny part of the entire system that generates money for the owner[s] of the organization. For example: if you are a manager in an organization, you and your entire team were employed to generate money for the owner[s] of the business and at the end of the month; you will receive your wages called salary.  Operating on employees’ platform, your employer controls the money you earn as well as your time. So your chances of becoming financially successful or rich to be precise are limited because your employer sets the standard of your earnings and controls your time.
Self employed platform. On this platform, you are just an advance employee who has total control of his time, decision and money making channel. Here you are the entire system of your own enterprise. If you are on vacation, your business is on vacation. If you are sick, your business is sick too. Whatever happen to you, affects your business too. How you manage your time, skills and experience will guarantee your income, but it is limited to how hard you can work to quickly turn over your working capital.
Business owners platform is the third platform and the primary platform where the rich makes more money than they need or want. On this platform, you can be part of the system or be holidaying in the Caribbean while your entire employees are working tirelessly to make more money for you. Although it is not easy to build your business to this point, but if you eventually do, then you will enjoy the unlimited chances of making more money than you need or want as long as your structured system is strong enough to do so.
By: Alfred Ade-Ijimakinwa

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