Understanding The Flow of Money 2

Money Flows Away From Problems To solutions.

“This is one of the rules of money, that money will always flow from problem to solution i.e money will flow from the hungry man who has a problem of hunger to the food seller (iya-basira) who has the solution to hunger.”

In my last article on this topic, we discussed the rules of money, who changed the rules of money, why was it changed, when was it changed, why is money referred to as currency etc. If you have not read it please do so here to have a quick refresher course. I remember ending that article by saying this “to understand the flow of money and put it to your advantage, you need to direct the flow of your money/currency to move from assets to assets as fast as possible” and one of the ways you can do that is to
“Acquire assets that produce [good] cash flow e.g. profitable business ventures.” I proceeded further to say that “Doing so will ensure that your money is not just tied down in a savings account but it is moving as a current is supposed to. It will ensure that your money is not under yielding at 3% p.a when it could be yielding at least, 50 % p.a in a well managed, profitable business.”

Well, starting a business requires quite a lot of diligence and effort. So many people set out to start businesses they have no idea about or just because everyone is into recharge card printing for example doesn’t mean you should also.

Before you rush out to start a business, you really need to understand the directional flow money. Yes! The flow of money. What does this mean you ask? The flow of money means the direction to which money is flowing. You remember I said money is a current in my previous article ehn? That’s right. Money is a current and it flows. If it doesn’t, it loses its value.
Understanding this helps you to position yourself in the direction in which money is flowing. There are two directional flows of money
It’s just like a two lane express way.
Money either flows:

1. Away from you or
2. Towards you.

The directional lanes of the flow of money is labeled “problems and solutions”. This is one of the rules of money, that money will always flow from problem to solution i.e money will flow from the hungry man who has a problem of hunger to the food seller (iya-basira) who has the solution to hunger.

This is evident in businesses and even individuals. The money that flows towards you is the reward for solving a particular problem. Whether as a salaried worker, a contractor or a business man.
The money that flows away from you is the cost of a problem you have not been able to solve. For example, when you fall sick and visit the doctor who treats you to make you hale and hearty, you pay his consultancy fees and cost of treatment. You have to pay him because he was trained to solve that particular problem of saving peoples lives from diseases and sicknesses.

The question you need to ask your self after reading this article is this:

Is money flowing towards you or going away from you?

The point is that as human beings, money is always flowing towards us and away from us simultaneously. What you need to do is to re- position yourself from the problem direction where money is leaving to the solution direction where money is flowing . That is the mind of an entrepreneur. They look at the problem the way everybody does but think and see differently.
The secret is just that for some people, more money flows away than it flows towards them. Money will always flow away from everyone that constantly has a problem that needs to be solved. Now who doesn’t have problems? Everyone has problems that needs solving, but some people have more solutions than problems. Such is the case of Aliko Dangote Africa’s richest man. More money flows towards him than away from him. This man has investments in cement, fast moving consumer goods (FMCG) such as sugar, salt, fruit juice, indomie, spaghetti, haulage and plans are underway to build a refinery in Nigeria. Oh My God! Tell me why he won’t be africa’s richest man.

Africa's Richest Man

Africa’s Richest Man

I remember him joining twitter a few months back and within the space of two hours, his follower count rose to 3000+. Today as I publish this article it stands at 52, 223 with just seven tweets and he follows 10 people. That is the life of a solution provider. Its not about how loud or how much you talk, its about how valuable your words are and what problems your actions solve.

Are you problem oriented or solution oriented? What problems are you solving? To use the rules of money to your advantage, you need to position yourself in the direction to which money flows .

Selah.

~ @phemyte

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Understanding The Flow of Money 1

Money is A Current, It Flows.

Flow: flow/flō/
Verb:(esp. of a liquid) Move along or out steadily and continuously in a current or stream
Noun:The action or fact of moving along in a steady, continuous stream.

credits: under30ceo

credits: under30ceo

Have you ever wondered why money is referred to as currency? Does it bother you what the word cashflow means? If it does, relax. You are not alone. There are probably hundreds of people who don’t either. This is why I have written this article. Just because of YOU. Enjoy.

In the year 1971, the rules of money changed. Thereby changing its flow. Money stopped being static and became a current. This is why you often hear the word CURRENCY. Like in physics, the word current means movement. Thus a current needs to keep moving. If it stops it loses its value. The reason why light ceases in your house is because the electric current stopped moving and it lost it value.

Who Changed The Rules of Money?
Prior to 1971, the worlds monetary system was backed by gold. This means, if you held $100, you are actually holding its equivalent in Gold and the $100 could be exchanged for its worth in Gold. However in 1971, President Nixon ended the convertibility of the dollar to gold.

Why?
President Nixon decided to change the rules because of high inflation rates in the Uncle Sam at that time and since then, money as we know it ceased to be the same. It began to lose its value as majority could not keep up with its pace.

What Does This mean To You?
Since you now know that money is a current, hence the word currency, you need to understand its flow and how to use it to your advantage.
A currency must keep moving in order to keep its value. This is why saving money [for looooong ] is somehow an absurd idea. I have nothing against having a savings but saving should have a purpose. Saving money indefinitely is like parking your currency. It losses its value. Imagine saving a $1000 at 3% p.a while the inflation rate is 7% p.a. This means by the time you’d want to make use of your money, you’d realize that your $1000 is about $500 in real worth.

How Do You Use The Flow of Money to Your Advantage?
The idea is to direct the flow of your money/currency to move from assets to assets as fast as possible. There are two ways to this:

1. Acquire assets that are appreciating in value e.g., gold, oil, land, real estate, stocks, silver etc.

2. Acquire assets that produce [good] cashflow e.g. profitable business ventures.

Doing this will ensure that your money is not just tied down in a savings account but it is moving as a current is supposed to.

It will ensure that your money is not under yielding at 3% p.a when it could be yielding at least, 50 % p.a in a well managed, profitable business.

Do you think money is liquid and its flow can be directed at will? Please use the comment box below to share your views. Thanks.
You can also join the conversation on twitter by following ~ @phemyte.