Wealth Creation And The Values Myths That Keep You Poor
Below is a MRR and PLR article in category Internet Business -> subcategory Web Hosting.
Wealth Creation and the Myths That Keep You Poor
Summary:
We've been conditioned to misunderstand monetary values, leading many to financial failure.
Introduction:
Susanna approached me with a desire to learn about wealth creation, but our conversation quickly took an unexpected yet important turn.
The Illusion of Discounts:
“Charles, I scored a deal today! Smirking Sams had a clearance sale, and I snagged a new lounge suite at 30% off!” Susanna exclaimed.
Out of curiosity, I asked, “What did it cost you?”
“The marked price was $2,200, but I bought it for $1,540.”
“Interesting. If you auctioned it tomorrow, what would it fetch?” I queried.
Susanna hesitated. “Probably around $500. Buyers there are mostly bargain hunters.”
“So, despite your discount, your wealth decreased by $690 upon purchase. However, if you'd bought it at an auction for $500, your assets would have temporarily appreciated by $350?"a difference of $1,040,” I explained.
She seemed defensive. “But others would have paid the full $2,200 and interest on their credit cards. At least I paid cash and waited for the sale.”
Understanding True Value:
“The average buyer ends up paying $2,500 after interest, sourced from $3,300 of pre-tax income. Various middlemen along the supply chain value the suite differently, and as it depreciates, its worth steadily declines. So, how do you define true value?” Susanna asked.
“You came for wealth-creating advice, so let’s debunk some myths starting with supply and demand,” I responded.
Value Beyond Supply and Demand:
“The value of a product is not solely determined by supply and demand,” I continued. “Consider your lounge suite; its value varied at every transaction point regardless of supply or demand shifts.
“Supply, demand, and economic trends can influence value, but they don't define it. Here’s a wealth creator’s definition of value: The value of an item is directly proportional to the current needs and means of the buyer, and the urgency of the seller to dispose of it.”
Buyer-Seller Dynamics:
“A thirsty person in the desert needs water but may not afford its price. Similarly, a lawyer might need to quickly sell estate items at auction, allowing you to purchase an antique dresser at half its resale value. The lawyer’s sale urgency differs from yours as a wealth creator."
“A desperate seller’s need differs from that of one who’s not in a hurry, affecting transactions. Isn’t this beneficial for wealth creators?"
“For us, ‘value’ signifies the needs and means of transaction parties. Wealth creators buy on one end of the spectrum and sell at the other.”
Advice on Seeking Value:
“So, should I have bought a similar lounge for $500 at an auction?” Susanna asked.
“No, that’s not the point,” I clarified. “Even buying at $500 with after-tax income means losing wealth over time. It’s about leveraging your assets for growth?"not spending what you save.”
A Shift in Perspective:
“With that $500, buy items at auctions or yard sales, resell them for at least $1,000. Then, if you wish, use $500 profit to buy your lounge. The other half can grow into $100,000 using principles from my book, and maybe even start your own franchise!”
Susanna realized, “So, my lounge costs me nothing, and I can build wealth with the other $500.”
“Exactly!”
“You make it sound easy,” she remarked.
“Oh, but it truly is,” I assured her.
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By shifting perspectives on value and understanding wealth dynamics, you can transform your financial reality.
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