The Formula for Wealth
There are laws that govern money. The wealthy understand and leverage them, the poor are a victim to them.
Because money moves from those who value it least to those who value it most, wealth will always move to
those who know the laws. The formula for wealth is actually quite simple, and it is shared below.
Whilst I have created this formula, it is modelled on the obsessive and enthusiastic study of the wealthiest people on the planet through history that is a great passion of mine. Here’s the formula:
W = (V+E) X L
Wealth = (Value + Exchange) x Leverage
Value – (V)
Value is the service you give to other people. If you serve and solve, people will receive value/benefit that they will desire more of, pay for, and refer you to others [creating leverage].
People are looking for their problems to be solved, and value creation is helping them solve it more quickly and easily. If you’re ever struggling yourself financially or emotionally, look more at how you can serve other s and solve their problems, and you will have part of the formula for wealth solved
Exchange – (E)
An exchange or transaction has to take place for you to receive money [wealth]. You have to give/offer a product, service or idea that someone else perceives high enough to pay for it.
But you also have to be able to gratefully receive financial [or other] fair compensation for it. Value without [fair] exchange or transaction will create a financial void in your life, because you will be giving but not allowing receipt, and there will be a lack of fair exchange. Guilt, lack of confidence and imposed religious or social beliefs/ideals make a transaction too one sided and unsustainable.
If you continue to give value without fair exchange or receipt you will build emotional resentment that will reduce value creation. You also won’t be able to financially sustain the value creation over a long period without receiving fair compensation.
Leverage – L
Leverage is the scale and speed of serving and solving. The more people you can serve and solve for, the higher the transaction volume and amount. The bigger the problem, the higher the transactional amount, as fairness is dictated by the scale and size of the problem.
You will only leverage and scale wealth if you have value and fair exchange, because anything that doesn’t serve and solve won’t scale or the downsides will scale reducing reputation and sustainability.
Referrals are a sign of (V + E) x L working effectively. As is leverage media such as video, TV and other far reaching media leveraging your (V + E). In the world of fibre optics, your (V + E) can leverage very quickly, at the speed of light.
You can get 10million views on YouTube, go Viral across multiple social media platforms and get national or global TV coverage. One to many is leverage in great effect.
You could have great (V +E) but no scale (L) and you don’t have wealth. You could have great (V) & L but no E and you won’t allow wealth into your possession.
You can have (E) & L but no (V) and you won’t sustain wealth for long periods; your reputation for not giving value will leverage and wealth be be rebalanced to those giving (V + E) X L
Honour this formula and the laws of wealth, keep going when you can’t immediately see the wealth, stay humble to the process and you will attract and sustain vast wealth.