Do You Utilize Or Accumulate Money?
For very long, many people have wondered why they don’t become rich. In my opinion, I believe the answer lies in the mind and changing the way you think would be the key to wealth. With the human mind being the core of wealth, it is important to check if you are in the right direction to affluence. Because of this, you must read this article to know if you utilize or accumulate money. Before starting, do note that people who utilize money have higher chances to be rich.
One way these 2 types are different would be the way they invest. For people who accumulate money, they tend to invest in the material aspect of an investment. For example, in stocks, they buy because they see the price going up and others also recommend it.
In contrast, people who utilize money prefer investing in the people behind the products and strategies. For example, Warren Buffet invests in companies with intrinsic value and durable competitive advantages. In simpler terms, it would mean firms with very strong foundations (or even have monopolies) and excellent management teams who can weather storms regardless of how bad they become. Because of this, money grows and becomes extremely productive, spinning off many other opportunities.
Furthermore, these 2 types also differ in the way they derive security. For people who accumulate money, they derive stability from accumulated money because they feel that the more money they have, the more control they gain.
In comparison, those who utilize money derive security from human life value, knowledge, experience and practical applications. Here, human life value would mean how their life has changed the lives of others for the better. For example, Steve Jobs wanted to make a dent in the universe and he certainly did it by revolutionizing the way how people can access music and other forms of media.
Moreover, people who accumulate money tend to invest in unsecured and uncollateralized investments. This is mainly because they do not have teams to delve deeper into aspects on managing risk well, causing them to lose out. One clear example of this would be the fact about how so many people burnt their wealth during the recent stock market crash in 2007.
In contrast, people who utilize money take time to study money well and because of this, their investments are secured and collateralized. The presence of collateral allows an investor to sell off the physical asset should the cash flow stops, giving them protection against severe market changes. Because of this, risk is minimized and people who utilize money thus have higher chances to become more wealthy.
In conclusion, after covering these 3 key aspects, I believe readers are more educated on how they can survive better in today’s harsh world. Nevertheless, keep learning and you will become keep becoming richer.
