What is the formula of money and how to make it?
Just wanting to get rich is not enough. You need to have a clear financial plan and take steps every day to implement it. What is the formula of money and how to make it will be discussed in this article.
In this case, it is necessary to take into account your personal characteristics. Without this element, the journey to wealth will resemble a hedgehog wandering in the fog. The article will help you develop your own formula for increasing income.
What is the monetary formula
The formula of money is a tool of thinking. Every person uses it. Consciously or intuitively. The formula is formed under the influence of social attitudes, the specifics of character, life goals, etc. Dozens and even hundreds of factors influence its formation.
Rich people know how to make money formulas. At the same time, everyone can create their own project. Any person will offer you the answer to the question "how to become richer?". For example, the janitor’s plan will be limited to simply working harder. As an option, take on the service of another yard. The effectiveness of his formula is in question. But still it exists.
The car dealer will create a different strategy. It will have many more variables. Here is a sample list of them:
- increase in working time;
- focus on goods whose cost is above average;
- search for a new audience;
- entering a new market;
- "pumping" sales skills.
A successful writer, if he wants to earn money, will write what is more popular. Maybe he will find a good marketer. Perhaps he will begin to promote content on new sites. Someone talks about books on You Tube, someone at conferences.
There are even more constants in the formula of a successful entrepreneur. The market holds a lot of chances for him to increase his capital. The businessman is demand driven. He catches the wind of change.
His habits are analysis and forecasting. They see what others have passed by, what others have not noticed. The business shark sees many promising development strategies. They like to do it, for them money is an interesting hobby. All this is necessarily reflected in the monetary formula.
The most effective formulas have the following features:
- viability in the conditions of modern reality;
- detail: taking into account a large number of factors – the more detailed the plan, the more you will see ways to improve well-being;
- clarity to understand the relationship of variables and their effectiveness.
The money formula determines actions. You look at the individual components and realize that you can influence them. This is the best motivation to start moving up.
Why do you need to make a monetary formula at all
The right attitude to money requires clear planning. Try to anticipate the results of your financial decisions. The road to wealth without the right formula is like driving a car with a blindfold on. A person simply does not understand where to move. It is unlikely that such actions will lead to success.
So, a sound financial plan is essential in order to understand what will really increase your income. This will help you focus on what is important, without wasting time on ineffective actions.
Acting competently, you will begin to notice all the opportunities for increasing financial well-being, avoid the influence of harmful stereotypes and attitudes. This will help you take action.
Remember that everything is possible. As the author of Millionaire in a Minute writes, imagine that you have been left an inheritance. The legacy is a million dollars. The only key to the safe is located on the top of the mountain, at an altitude of about 6000 meters. If you go there, the money is yours.
The task is real – many have already visited this mountain. But it requires serious preparation. It’s the same with earnings. It is recommended to start the ascent with several points: evaluate your workload, performance.
Think about demand and other qualities as a percentage of the maximum possible options. Noticed the articles with the lowest level? These are the very obstacles that prevent the growth of your well-being. They are in urgent need of correction.
We always focus on some one niche, specialty, business. This deprives us of many opportunities. Often only one knowledge separates from the wealth of a person. A writer may lack the basics of marketing, a marketer may lack the skill of a designer, and so on. This suggests that you need to develop in different ways.
Preparation for the compilation of the monetary formula
Before compiling your own monetary formula, look at yourself. Do not forget that the scheme for the circulation of financial resources should be as targeted as possible. Think about what talents you have, how many years is your professional experience? What defines your personality?
Think about what defines you as a person. For example, remember what you were often praised for. Decide what you enjoy doing the most. If you weren’t being paid, what would you be willing to do for free?
Then move on to the next step. It’s a choice of variables. At first, it is better to stop at 2-4. It seems that it is impossible to influence them directly? Then try splitting them into smaller pieces.
For example, you are a photographer who wants to earn more. If you raise the price now, you will lose some customers. Then you can take more courses, improve the product and raise the cost. Another option is to launch a new product or direction. For example, you can start shooting reports or doing art shooting. Art photography is expensive.
Another example is the cost of an hour of your work in the office. How can you influence this indicator? At first glance, this is impossible. But what if you pump professional skills? This will increase your value in the eyes of employers. In the labor market, the demand for such an employee will increase. Accordingly, the price of the work will increase.
So, preparation for the compilation of the monetary formula involves the selection of its components and their distribution in order of importance. The next step is to identify the required resources.
The last point is analytical work. Ask yourself questions. How much investment will you need in the initial stages? Will they pay off? Imagine what qualities of character you will need to achieve your goal. What skills will bring you closer to your dream?
The world is generous. It does not limit the money supply. The formula helps to realize how to attract wealth into your life. It determines the actions of a person. And shows specific ways. A person understands what can lead him to financial freedom – climbing the career ladder, developing professional talents, investing, etc.
Decided to develop your own monetary formula? Fine. Now pay attention to your mood. The correct attitude to money involves their perception as energy, which helps to receive various benefits.
Money is neutral. They can become a means of destruction. Someone buys alcohol on them, invests them in gambling. That’s all. Others go to school to do better work, donate funds to good causes.
Banknotes are not the goal. The book "Formula of Money" by the famous orientalist Sun Light contains an important statement. Money is just the key to prosperity. Such perception gives a feeling of inner freedom. You will begin to manage the funds, not they you.
The author speaks about the importance of a special internal state. Theses from his book set in the right way:
- develop in yourself an inner sense of abundance: the world is ready to give everyone everything they need for happiness;
- practice mantras to raise funds;
- replace the setting "I want" with "I choose";
- get rid of the negative particle "not": the universe perceives only positive statements.
Light writes that the rich speak the language of opportunity, while the poor speak the language of limitation. Success starts with a special attitude.
Get rid of the "poor man’s mindset" as soon as possible. The attitudes “you can’t earn all the money" and “it’s impossible to get rich in an honest way” have destructive power. Many people think that trees are distinguished by fruits, but they are distinguished by seeds.
What we think is seeds. Something useful can grow out of them, and maybe something meaningless. It depends only on our decisions.
what is the formula of money and how to write it
We understood what the money formula is. We realized the importance of its competent design. It is time to talk about how to derive this pattern after all. It is best to consider the process with a specific example.
Many today prefer freelancing. This is how programmers, lawyers, accountants, economists, designers, etc. work. They are independent of the employer. They independently look for customers and fulfill orders for them. Let’s make a monetary formula for "free artists".
In general, it looks like this:
The cost of an hour of work * the number of working hours – the cost of promotion.
The price per hour is determined by the demand for the service, the reputation of the employee, his experience.
The number of working hours is influenced by even more factors. Each of them is an opportunity to increase labor time. Accordingly, this is a potential increase in earnings. A person cannot work hard 24 hours a day. He needs a break anyway. So don’t aim to increase revenues just by the number of orders.
What determines labor time
- working capacity;
- ability to take into account the requirements of the customer;
- number of improvements;
- self-presentation skills;
- ability to find regular customers;
- reputation in the chosen field of activity.
Each of these items can be worked on. For example, as you gain experience, you start doing things faster. Finish the courses, and not only the speed, but also the quality of work will increase. Another important skill is the ability to entrust to specialists what you do not like. Then you will only do what you love.
Remember that any job can become a chore if you constantly do the same thing. Increase the cost of your services or master the area that will not let you get bored.
Even such a general and primitive monetary formula works. It shows where you need to move, what points you should pay attention to in the first place. Looking at these variables, it is easier for a person to find his weak points. They certainly need reinforcement.
Formula elements are linked. For example, you can increase your advertising spend. But there is another way to attract customers. This is work on business reputation. Testimonials from satisfied customers are just as effective as advertisements.
The formula for a business owner is already more complex. To understand what the formula of money is for them and how to compose it, you need to delve into the concepts.
Here it is important to take into account commodity circulation schemes, economic indicators, market features, etc. It is advisable for entrepreneurs to focus on the Fisher formula. It reflects the relationship between the volume of money supply and the level of market prices. The model helps to understand how many goods and at what price should be delivered to the market.
The formula looks like this: MV=PQ
Where M is the amount of funds in circulation, and V is the speed at which money enters circulation. Also, P is the price level in the market, and Q is the quantity of goods on the market.
In everyday life, it helps to understand how effectively you manage finances. You see if there is a balance between income and expenses.
Many have heard of the writings of Karl Marx. They have already become the reference books of most economists. This formula of Marx’s capital is more global. It gives an idea of the circulation of money and its dependence on goods. Thus, money becomes the final product of commodity circulation. However, they are the first step to the accumulation of capital.
From this Marx derived the general formula of capital, showing the dependence of money on commodities. It is similar to the commodity circulation algorithm (T – D – T). The main difference is that the circulation of money as capital is a purchase for the purpose of selling and earning.
The formula of Karl Marx clearly demonstrates that in order to accumulate capital, it is necessary to make investments, being in a constant flow of trade.
Decided to create your own monetary formula? The experience of well-known economists will help you. There is no need to reinvent the wheel every time.
A word about restrictions
Any monetary formula has limitations. For example, a person can work effectively only 8 hours a day for natural reasons. The cost of the designer’s work varies, but also has its limit. It is impossible to jump above the limits of a particular monetary model. There is another way out – to create a fundamentally new formula for money. Find an innovative solution.
For example, you earn by giving personal psychological consultations. The income is stable, but I want more. Only there are only 24 hours in a day. You cannot physically increase the number of sessions. Maybe it’s time to think about holding seminars? Then at one time you will be able to accept not one, but 10 or even 50 clients at once. Of course, this will directly affect earnings.
Another option is to create your own course. For a psychologist, this can be a topic of self-esteem, relationships. You record a course once and sell it to hundreds of people. It will not be a personal consultation, but it will also be profitable.
The correct monetary formula is the key to wealth and prosperity. This tool will help you identify obstacles on your path to wealth. And such schemes well show options for increasing the state. Use the knowledge and conclusions of economists and psychologists.
Keep in mind that it is important not only to find the very formula, but also to act. Sometimes we hesitate to even start. Lack of self-confidence and self-confidence. Sometimes we start but don’t reach the finish line. This is due to the lack of a team, or due to the fact that the person was not ready for difficulties.
Choose heroes that you can focus on. It could be even Steve Jobs, even Johnny Depp.
Pay attention to ancient practices and techniques. Accurate calculation of the indicators of your formula will surely lead to success. He will probably inspire even greater feats.
If you want a deeper understanding of what the money formula is and how to make it, study the books of Adam Jackson and other successful businessmen. Some of the tips can change your life.
Most successful people consider the subconscious to be a powerful tool for attracting money. Each of them writes that the first thing you need for success is desire.
Set specific goals and objectively evaluate your strengths. Plan, even if it seems to be useless. Keep learning and your skills will bring you money. Earn money honestly and share it. Paradoxically, in order to receive, you must first give.
When creating your monetary formula, remember that the request determines the answer. If you think about how to earn 50,000 🪙, you will earn it. If you want to know how to get a million, you will get the answer to this question.