The Hidden Secrets about Money - You Need to Know to Become Rich

Money, what is money? How does it work to get rich? These questions probably cross in your mind. 

When you think about money, it might motivate you or make you uneasy due to your current financial situation.

You might be in a job after years but still struggle to handle your money. You might feel underpaid, dealing with sky-high living expenses, or maybe you're studying for a degree with hopes that your job will eventually bring in decent money. Savings? Investing? Probably none. Instead, there's that high-interest debt you caught up and live paycheck to paycheck, it seems getting wealthy like a far-off fantasy.

As people say, money makes the world go round, it has a significant role in our lives, even so, there's much we don't know about it, and many assumptions we make are incorrect. So, in this video, I’m going to talk about the hidden secrets about money. Hopefully, by the end, you'll have a better understanding of how money works.

What's your real take on money? Is it something you work hard for, something earned, or maybe inherited? Do you see it as the root of all evil? Are you constantly craving more of it, spending most of your life chasing after it? The truth is, your views on money are largely shaped by your upbringing and surroundings. If you grew up in a financially strapped family, you might believe you're destined to have limited finances. On the flip side, you might have gone to the extreme, striving to make as much money as possible to avoid that situation. The fact that your school probably didn't educate you much about this topic doesn't help either, leading to many of you holding misconceptions about money that won't be beneficial on your journey. So, let's shift gears and alter the way you've been perceiving money all your life.

Money is essentially a tool that facilitates the exchange of value between individuals and entities, and it has evolved over time. It serves as a store of value, retaining its worth over time. It acts as a unit of account, like measuring the worth of goods and services. Lastly, its primary acts as a medium of exchange. This function facilitates trade, barter, and commerce.

In the past, money took various forms like salt, seashells, or the exchange of goods. As economies evolved, money was standardized into currencies, reducing transaction costs and simplifying value comparisons. The concept of money shifted from tangible forms like metals and coins to abstract representations like paper notes and electronic records in the modern era.

So, don’t confuse terms about money and currencies again. Money, as a broader term, encompasses an intangible system of value enabling the exchange of goods and services. On the other hand, currency, a tangible form of money often issued by a government, serves as a type of payment within a specific jurisdiction.

On a personal level, money can symbolize intangible qualities such as wealth, safety, status, and more.

You've likely learned that the main aim of education is to eventually land a job and earn a salary. However, if your goal is to make a lot of money quickly, the conventional job-focused approach won't get you there. At some point your job will give you a secure financial state as long as you manage it well. But, if you want more, you can’t solely depend on your job. Time is a valuable resource, and in a standard job, your earnings are directly tied to the time you invest. Even with a decent hourly wage, it would take decades to reach a million dollars, considering expenses, taxes, and inflation.

So, why do some people become millionaires or even billionaires at a young age? The secret lies in their unique approach to money. They understand it differently, and the truth is, they've figured out a better strategy than most. Here’s the deal: you get paid based on how much value people think you bring. These people are the market – it's you, your friends, your family, your neighbors, your entire community, and your country.

Then, how to increase your perceived value and wealth? Elon Musk once mentioned, “You’re paid in proportion to the magnitude of the problems you solve.” In simpler terms, if you aim to increase your earnings, focus on solving more significant problems.

The most common challenges people face relate to four key aspects: Money, Health, Relationships, and Status. If you want to boost your income, helping someone enhance any of these areas is a great way to achieve that.

Successful individuals like Elon Musk and Jeff Bezos have high perceived value because they address significant problems. Rather than chasing money directly, look for problems people complain about or wish were solved. Build a business around providing solutions that can scale to reach a larger audience.

Consider scalability – how widely your solution can impact people. Starting a local business has limitations, but a scalable solution, like an online platform or software, can reach a global audience without the constraints of time or location. Automation and outsourcing also play crucial roles in keeping your business efficient.

If you're in a job or pursuing something not directly tied to a business but want to increase income, ask yourself what problems you're solving. Finding more solutions and contributing value in your workplace can be a lever for negotiating a higher salary.

So, instead of chasing money, focus on solving problems and providing scalable solutions, embracing automation and efficient processes. This mindset shift can lead to financial success.

Knowing a bit about money won't magically make you a billionaire, but it can bring some peace of mind. Understanding the basics of money helps us navigate the world with less confusion, making economic news less overwhelming. While money isn't everything, not having it can be pretty tough.