Posted on July 1, 2010 - by Alvin

Money, Wealth and You

Photo by eva101

I have heard from different sources about value creation brings about wealth. You get richer only if you increase the value that you give to others. Zig Ziglar said, “you will get what you want if you help enough people get what they want.” Initially, I am not sure about this principle even when teacher Dennis mentioned about providing value and not to aim for financial freedom as a goal. If I give something to others, wouldn’t it make me worse off? As I continue to learn and inquire about money, that I start to understand this principle. When you provide a service or product that is needed by the society, you solve problems and people who need the service or product will pay you for it. They become better off consuming the service or product, and you become wealthier. It is a win-win relationship. The more value you can create, the more money you can make. Hence, it is contrary to what most people believe, in order to have more, you need to take more. Instead, in order to have more, you need to give more.

Thanks to La Papillion for recommending “Killing Sacred Cows” which gave me a better understanding of this principle. I cannot explain better than the author, Garrett Gunderson, so I shall quote his passages:

“Focusing on accumulating money is like wanting to harvest the fruits of a tree while ignoring the roots. As we accept the accumulation theory, most of us become frustrated with the lack of fruit on our tree – or lack of money in our bank accounts. And what do we do to solve this problem? Read more…

Related posts:

1. Personal Finance Part 16 – The Measurement of Wealth
2. The velocity of money
3. Fairness In Wealth Distribution