Questions

It's a serious question. If you were starting today, what strategy would you take?

The financial system is essentially concerned with borrowing and lending and has six parts or elements:
1. First: lenders (surplus economic units) and borrowers (deficit economic units), i.e. the non-financial-intermediary economic units that undertake lending and borrowing. They may also be called the ultimate lenders and borrowers (to differentiate them from the financial intermediaries who do both). Lenders try and earn the maximum on their surplus money and borrowers try and pay the minimum for money borrowed.
2. Second: financial intermediaries, which intermediate the lending and borrowing process; they interpose themselves between the ultimate lenders and borrowers and endeavour to maximise profits from the differential between what they pay for liabilities (borrowings) and earn on assets (overwhelmingly loans). In the case of the banks this is called the bank margin. Obviously, they endeavour to pay the least on deposits and earn the most on loans.
3. Third: financial instruments, which are created to satisfy the financial requirements of the various participants. These instruments may be marketable (e.g. treasury bills) or non-marketable (e.g. a utilised bank overdraft facility).
4. Fourth: the creation of money when demanded. As you know banks (collectively) have the unique ability to create their own deposits (= money) because we the public generally accept their deposits as a means of payment.
5. Fifth: financial markets, i.e. the institutional arrangements and conventions that exist for the issue and trading (dealing) of the financial instruments.
6. Sixth: price discovery, i.e. the price of shares and the price of debt (the rate of interest) are “discovered”, i.e. made and determined, in the financial markets. Prices have an allocation of funds function.
Let us look at the fourth part in a bit detail.
Money creation: When banks make new loans / provide new credit (= buy NMD, MD and shares), they create NBPS deposits (= money). The referee in this game is the central bank which controls the growth rate in money creation (= new bank deposits resulting from new bank loans) by means that differ from country to country (which are elucidated later). The principal method is the interest rate on banks’ loans (= bank assets) via the central bank’s KIR interest rate, which influences the cost of bank liabilities (i.e. via the bank margin).
Thus there is no easy way to make a million dollars without passing through the financial system’s 6 steps, but there are few points which if you do keep in mind will help you sail through these 6 steps and earn you a million dollar.
1. Stop obsessing about money: While it sounds counterintuitive, maintaining a laser-like focus on how much you make distracts you from doing the things that truly contribute to building and growing wealth. So, shift your perspective. See money not as the primary goal but as a by-product of doing the right things.
2. Start tracking how many people you help, even if in an exceedingly small way: The most successful people I know both financially and in other ways are shockingly helpful. They are incredibly good at understanding other people and helping them achieve their goals. They know their success is ultimately based on the success of the people around them.

So, they work hard to make other people successful: their employees, their customers, their vendors, and suppliers because they know, if they can do that, then their own success will surely follow. And they will have built a business--or a career they can be truly proud of.
3. Stop thinking about making a million dollars and start thinking about serving a million people: When you only have a few customers and your goal is to make a lot of money, you're incented to find ways to wring every last dollar out of those customers. But when you find a way to serve a million people, many other benefits follow. The effect of word of mouth is greatly magnified. The feedback you receive is exponentially greater and so are your opportunities to improve your products and services. You get to hire more employees and benefit from their experience, their skills, and their overall awesomeness. And in time, your business becomes something you never dreamed of--because your customers and your employees have taken you to places you could not even imagine. Serve a million people and serve them incredibly well--and the money will follow.
4. See making money to make more things: Generally speaking, there are two types of people. One makes things because they want to make money; the more things they make, the more money they make. What they make does not really matter that much to them they will make anything as long as it pays. The other wants to make money because it allows them to make more things. They want to improve their product. They want to extend their line. They want to create another book, another song, another movie. They love what they make, and they see making money to do even more of what they love. They dream of building a company that makes the best things possible...and making money is the way to fuel that dream and build that company they love. While it is certainly possible to find that one product that everyone wants and grow rich by selling that product, most successful businesses evolve and grow and, as they make money, reinvest that money in a relentless pursuit of excellence.
5. Do one thing better: Pick one thing you are already better at than most people. Just. One. Thing. Become maniacally focused at doing that one thing. Work. Train. Learn. Practice. Evaluate. Refine. Be ruthlessly self-critical, not in a masochistic way but to ensure you continue to work to improve every aspect of that one thing. Financially successful people do at least one thing better than just about everyone around them. Excellence is its own reward, but excellence also commands higher pay--and greater respect, greater feelings of self-worth, greater fulfilment, a greater sense of achievement all of which make you rich in non-monetary terms.
6. Make a list of the world’s 10 best people at that one thing: How did you pick those 10? How did you determine who was the best? How did you measure their success? Use those criteria to track your own progress towards becoming the best. If you are an author, it could be Amazon rankings. If you are a musician, it could be iTunes downloads. If you are a programmer, it could be the number of people that use your software. If you are a leader, it could be the number of people you train and develop who move on to bigger and better things. If you are an online retailer, it could be purchases per visitor, or on-time shipping, or conversion rate. Do not just admire successful people. Take a close look at what makes them successful. Then use those criteria to help create your own measures of success.
7. Consistently track your progress: We tend to become what we measure, so track your progress at least once a week against your key measures.

Maybe you will measure how many people you have helped. Maybe you will measure how many customers you have served. Maybe you will evaluate the key steps on your journey to becoming the world's best at one thing. Maybe it is a combination of those things, and more.
8. Build routines that ensure progress: Never forget that achieving a goal is based on creating routines. Say you want to write a 200-page book. That is your goal. Your system to achieve that goal could be to write four pages a day; that is your routine. Wishing and hoping will not get you to a finished manuscript but sticking faithfully to your routine ensures you reach your goal. Or say you want to land 100 new customers through inbound marketing. That is your goal; your routine is to create new content, new videos, new podcasts, new white papers, etc., on whatever schedule you set. Stick to that routine and meet your deadlines, and if your content is great, you will land those new customers. Wishing and hoping will not get you there--sticking faithfully to your routine will. Set goals, create routines that support those goals, and then ruthlessly track your progress. Fix what does not work. Improve and repeat what does work. Refine and revise and adapt and work hard every day to be better than you were yesterday. Soon you will be good. Then you will be great. And one day you will be world-class. And then, probably without even noticing, you will also be a millionaire.
Besides if you do have any questions give me a call: https://clarity.fm/joy-brotonath


Answered 7 months ago

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