How money works or newbie mistakes.
Actually, one of my readers encouraged me to write this opus. Special thanks to him, but the article is not about that.
We do not consider clinical cases for anyone, almost anyone, and a number of questions arise in a person's life. And they may sound different but their essence boils down to the following:
What is money?
People answer it very differently, and most often they don't answer correctly. When I asked this question in seminars, I received a wide variety of answers. From the exotic and academic to the downright dumb. I even collected these answers for a while. Then I got tired of it
So what is money and what is its essence for a person? Without an answer to the second question, there can be no answer to the first.
An interesting situation, many people wondered where to get money, but few people wondered why I need money at all?
Usually, when I ask this question, they answer me "Well, why, it's already clear!".
I say: Well, if it is clear, then tell me more.
And it starts: an apartment, a car, expensive restaurants, travel, and so on.
I count the approximate cost in my mind and ask: Well, here you have 5kk rubles, by the way, rarely anyone climbs out for the amount of 10kk, you bought all this, and then?
Usually they say: I will invest!!!
And to the question of where, they say: Go To Business!!! And for some reason, they are often very happy with their answer, as if they have discovered a new continent.
This touches Iskrinne.
None of the more or less serious businessmen will answer that way. From the grins from the audience, I immediately recognized them. I choose one at random and ask the question: What is the turnover of your business approximately?
Answer for example: 100kk per month.
I ask the second question: How much do you earn with this turnover per year? Just answer not with a number, but in the abstract. And the most common answer is: In different ways, as it turns out.
This response leaves most of the audience horrified or skeptical.
Because most people have an image in their head - a businessman is a person who has a lot of money and doesn't know where to put it. Alas and ah, this image is nothing more than a beautiful bike from movies and the press. Unfortunately, this has nothing to do with real life.
But we digress a bit.
So why do you need money? As strange as it may sound, no one really needs money. You don't need money, but something that you can buy here and now. Again, we will exclude clinical cases that are better considered by qualified psychiatrists.
This means that money is only needed to create, maintain and protect a certain lifestyle that we are used to or strive for. From this definition, it follows that to talk about money as an independent substance in a person's life is a little stupid and naive at least. We can only talk about the concept of cash flow. And compare it with the cost of a person's lifestyle.
Long-held studies have shown that the average person can reasonably dispose of only an amount that is no more than 7 times higher than the maximum amount that he himself ever had before in his 100% disposal. Remember the incidents from your life and see such situations for yourself. Why this happens and what the essence of this phenomenon is, let the pundits understand, but for us the very fact that this is the case is more important.
Take the average Vasya. (Please don't be offended by the Vassilievs.) Vasya won a million in the lottery. What will it do?
1. Buy a new car for 500k
2. Buy a dacha for 300k
3. Buy his wife a fur coat for 150k
4. The remaining 50k will be spent on a tour to Thailand.
So there is no million. And again we have to go to the factory. Although at first it seemed to him that this is a lot of money and they will never run out. And all because his psychological limit of reasonable money management is only 15*7=105k
Do you mind if he wins 10kk? Then what? But nothing.
There will be a more expensive car, a renovated apartment will be added to the dacha, a pile of expensive glitter will be added to the fur coat, and the tour will not be in Tai, but for example in Europe. And 10cc will evaporate as quickly as 1.
I'm not telling you all this to make it more important and not to make you laugh at Vasya. I'm telling you this so that you don't end up being the same Vasya. And I do not say that Vasya does not know how to manage money at all. Try to live with your family on the same 15 thousand a month and not just once, but every month. You need to manage your money very well to do this. So there is no place for teasing Vasya here at all.
Here again we come to the cash flow situation. For our Vasya, this cash flow is the same 15k per month. Salary at the factory. And the cost of Vasya's lifestyle is just the same 15k well, maybe with a small minus.
Most people continue to live in this rhythm, try to hit the jackpot, spend it and return to the rhythm again. But this article is for those who want to do something different. How else, you may ask? That's where it all starts.
Let's say that our Vasya is also puzzled by this situation. Vasya sees this as his monthly balance in money:
Debit:
Salary - 15,000 rubles
Credit:
Family expenses - 12,300 rubles
Deferred expenses-1,500 rubles
Unforeseen expenses - 1,000 rubles
.=========================
Available funds: 200 rubles.
And in time it's like this:
Debit:
Receipts - 30*24= 720 hours
Credit:
Work - 22 * 8= 176 hours
Sleep-30*8= 240 hours
Unforeseen expenses-100 hours
=========================
Available funds: 204 hours.
There is little free money, but there is time. And Vasya goes to the Internet.
Let's skip Vasya's ordeal on the Internet in search of money that is not there, we hope that he did not spend too much money to understand that the fabulous profits that are offered on the Internet on every second site are a fairy tale and we hope that he did not despair.
Vasya comes to the conclusion that it is necessary to work on the Internet to earn money and writes a business plan. It sounds pathetic, but it's true.
Vasya's business plan:
1. I want to work on the Internet no more than 4 hours a day (120 hours a month).
2. I want to earn at least 15,000 rubles per month on the Internet. (125 rubles per hour)
3. I want my expenses for this type of earnings to be no more than 5,000 rubles per month
=====================================================
Bottom line: My net income should be 84 rubles per hour.
According to these criteria, our Vasya is looking for a job. And the most interesting thing is that most likely he will find it. Because the biggest advantage of this business plan is its realism.
After some time, Vasya will gain experience and will understand how and where you can earn money on the Internet. His business plan will change more than once. He will want to reduce labor costs, increase income, reduce costs, and hire other people to do some of the work for him. He will abandon the factory because he simply doesn't need it anymore. And after a while, we have a completely respectable businessman with an income of 30k per day, which he spends a couple of hours a day to get.
Does it look like a happy ending? Looks like. But the bottom line is that it happens. More precisely, this is the only way it happens. The only question is whether you have enough strength to go this way.
So what conclusions can we draw from all of the above? And the conclusions should be drawn as follows:
1. Don't try to invest more than you can reasonably estimate. And those same x * 7 at least some kind of reference point.
2. If the money doesn't arrive,it runs out.
3. The higher the jump, the more painful it is to fall.
4. There is no money on the Internet. People who go to the Internet have money.
5. You can only invest money in yourself. More precisely, where you are sure and know in detail how exactly the income is obtained. That is, in yourself.
6. Money is converted on time and vice versa.
7. No one will let you earn money if they don't earn it for you in turn.
8. There are no risk-free investments. The higher the expected profit, the higher the risk.
Let's finally return to the beginning of our story. What exactly is money?
And money is a tool for creating some benefits. And like any tool, you need to be able to use it. This must be learned constantly. But most often it happens as in a children's song:
"I'll go find an axe!"
"So what happens next?" You're going to hit a pine tree, and you're going to hit my leg!
- Can you collect mushrooms and nuts?
"No, I can't.
- Do you have time to run away from the crocodile?
"No, I won't make it.
"So we'll save you, but we know this island is uninhabited!"
- What, not inhabited at all???
- That is Absolutely!!!
Business, and Internet business in particular, puts you in a situation like on a desert island with sharks, crocodiles and other carnivorous animals. And no one will help you collect mushrooms and nuts just like that. And if you are offered a free samorub axe, then you should think about why this is so. It may well be that it is added to it in small print in the instructions that it sends the felled forest only to the author of the axe.
I am also very often asked the question: Why do some people manage to earn a lot of money, while others do not?
I answer: It's very simple.
1. There must be a goal. The goal can't be money.
2. There must be a reasonable plan for achieving the goal.
3. The road will be mastered by the person walking.
Many people are offended. But that's their business. Good luck with all your achievements.
Published for the first time in 2014. It hasn't lost its relevance since then....
Actually, one of my readers encouraged me to write this opus. Special thanks to him, but the article is not about that.
We do not consider clinical cases for anyone, almost anyone, and a number of questions arise in a person's life. And they may sound different but their essence boils down to the following:
What is money?
People answer it very differently, and most often they don't answer correctly. When I asked this question in seminars, I received a wide variety of answers. From the exotic and academic to the downright dumb. I even collected these answers for a while. Then I got tired of it
What does this definition tell us about the essence of money as a household item? He doesn't say anything. Because despite the academic nature of this definition, its meaning is empty and only suitable for a wiki.
So what is money and what is its essence for a person? Without an answer to the second question, there can be no answer to the first.
An interesting situation, many people wondered where to get money, but few people wondered why I need money at all?
Usually, when I ask this question, they answer me "Well, why, it's already clear!".
I say: Well, if it is clear, then tell me more.
And it starts: an apartment, a car, expensive restaurants, travel, and so on.
I count the approximate cost in my mind and ask: Well, here you have 5kk rubles, by the way, rarely anyone climbs out for the amount of 10kk, you bought all this, and then?
Usually they say: I will invest!!!
And to the question of where, they say: Go To Business!!! And for some reason, they are often very happy with their answer, as if they have discovered a new continent.
This touches Iskrinne.
None of the more or less serious businessmen will answer that way. From the grins from the audience, I immediately recognized them. I choose one at random and ask the question: What is the turnover of your business approximately?
Answer for example: 100kk per month.
I ask the second question: How much do you earn with this turnover per year? Just answer not with a number, but in the abstract. And the most common answer is: In different ways, as it turns out.
This response leaves most of the audience horrified or skeptical.
Because most people have an image in their head - a businessman is a person who has a lot of money and doesn't know where to put it. Alas and ah, this image is nothing more than a beautiful bike from movies and the press. Unfortunately, this has nothing to do with real life.
But we digress a bit.
So why do you need money? As strange as it may sound, no one really needs money. You don't need money, but something that you can buy here and now. Again, we will exclude clinical cases that are better considered by qualified psychiatrists.
This means that money is only needed to create, maintain and protect a certain lifestyle that we are used to or strive for. From this definition, it follows that to talk about money as an independent substance in a person's life is a little stupid and naive at least. We can only talk about the concept of cash flow. And compare it with the cost of a person's lifestyle.
Long-held studies have shown that the average person can reasonably dispose of only an amount that is no more than 7 times higher than the maximum amount that he himself ever had before in his 100% disposal. Remember the incidents from your life and see such situations for yourself. Why this happens and what the essence of this phenomenon is, let the pundits understand, but for us the very fact that this is the case is more important.
Take the average Vasya. (Please don't be offended by the Vassilievs.) Vasya won a million in the lottery. What will it do?
1. Buy a new car for 500k
2. Buy a dacha for 300k
3. Buy his wife a fur coat for 150k
4. The remaining 50k will be spent on a tour to Thailand.
So there is no million. And again we have to go to the factory. Although at first it seemed to him that this is a lot of money and they will never run out. And all because his psychological limit of reasonable money management is only 15*7=105k
Do you mind if he wins 10kk? Then what? But nothing.
There will be a more expensive car, a renovated apartment will be added to the dacha, a pile of expensive glitter will be added to the fur coat, and the tour will not be in Tai, but for example in Europe. And 10cc will evaporate as quickly as 1.
I'm not telling you all this to make it more important and not to make you laugh at Vasya. I'm telling you this so that you don't end up being the same Vasya. And I do not say that Vasya does not know how to manage money at all. Try to live with your family on the same 15 thousand a month and not just once, but every month. You need to manage your money very well to do this. So there is no place for teasing Vasya here at all.
Here again we come to the cash flow situation. For our Vasya, this cash flow is the same 15k per month. Salary at the factory. And the cost of Vasya's lifestyle is just the same 15k well, maybe with a small minus.
Most people continue to live in this rhythm, try to hit the jackpot, spend it and return to the rhythm again. But this article is for those who want to do something different. How else, you may ask? That's where it all starts.
Let's say that our Vasya is also puzzled by this situation. Vasya sees this as his monthly balance in money:
Debit:
Salary - 15,000 rubles
Credit:
Family expenses - 12,300 rubles
Deferred expenses-1,500 rubles
Unforeseen expenses - 1,000 rubles
.=========================
Available funds: 200 rubles.
And in time it's like this:
Debit:
Receipts - 30*24= 720 hours
Credit:
Work - 22 * 8= 176 hours
Sleep-30*8= 240 hours
Unforeseen expenses-100 hours
=========================
Available funds: 204 hours.
There is little free money, but there is time. And Vasya goes to the Internet.
Let's skip Vasya's ordeal on the Internet in search of money that is not there, we hope that he did not spend too much money to understand that the fabulous profits that are offered on the Internet on every second site are a fairy tale and we hope that he did not despair.
Vasya comes to the conclusion that it is necessary to work on the Internet to earn money and writes a business plan. It sounds pathetic, but it's true.
Vasya's business plan:
1. I want to work on the Internet no more than 4 hours a day (120 hours a month).
2. I want to earn at least 15,000 rubles per month on the Internet. (125 rubles per hour)
3. I want my expenses for this type of earnings to be no more than 5,000 rubles per month
=====================================================
Bottom line: My net income should be 84 rubles per hour.
According to these criteria, our Vasya is looking for a job. And the most interesting thing is that most likely he will find it. Because the biggest advantage of this business plan is its realism.
After some time, Vasya will gain experience and will understand how and where you can earn money on the Internet. His business plan will change more than once. He will want to reduce labor costs, increase income, reduce costs, and hire other people to do some of the work for him. He will abandon the factory because he simply doesn't need it anymore. And after a while, we have a completely respectable businessman with an income of 30k per day, which he spends a couple of hours a day to get.
Does it look like a happy ending? Looks like. But the bottom line is that it happens. More precisely, this is the only way it happens. The only question is whether you have enough strength to go this way.
So what conclusions can we draw from all of the above? And the conclusions should be drawn as follows:
1. Don't try to invest more than you can reasonably estimate. And those same x * 7 at least some kind of reference point.
2. If the money doesn't arrive,it runs out.
3. The higher the jump, the more painful it is to fall.
4. There is no money on the Internet. People who go to the Internet have money.
5. You can only invest money in yourself. More precisely, where you are sure and know in detail how exactly the income is obtained. That is, in yourself.
6. Money is converted on time and vice versa.
7. No one will let you earn money if they don't earn it for you in turn.
8. There are no risk-free investments. The higher the expected profit, the higher the risk.
Let's finally return to the beginning of our story. What exactly is money?
And money is a tool for creating some benefits. And like any tool, you need to be able to use it. This must be learned constantly. But most often it happens as in a children's song:
"I'll go find an axe!"
"So what happens next?" You're going to hit a pine tree, and you're going to hit my leg!
- Can you collect mushrooms and nuts?
"No, I can't.
- Do you have time to run away from the crocodile?
"No, I won't make it.
"So we'll save you, but we know this island is uninhabited!"
- What, not inhabited at all???
- That is Absolutely!!!
Business, and Internet business in particular, puts you in a situation like on a desert island with sharks, crocodiles and other carnivorous animals. And no one will help you collect mushrooms and nuts just like that. And if you are offered a free samorub axe, then you should think about why this is so. It may well be that it is added to it in small print in the instructions that it sends the felled forest only to the author of the axe.
I am also very often asked the question: Why do some people manage to earn a lot of money, while others do not?
I answer: It's very simple.
1. There must be a goal. The goal can't be money.
2. There must be a reasonable plan for achieving the goal.
3. The road will be mastered by the person walking.
Many people are offended. But that's their business. Good luck with all your achievements.
Published for the first time in 2014. It hasn't lost its relevance since then....
