Money Is a Renewable Resource

What we have been taught about money is wrong. Our parents always told us “Save your money, don’t waste it!”, banks keep preaching to save your money, co-workers or friends; everyone has the same message: “save your money!” Have you ever stopped and thought about this message?

What’s the point of saving the money? It’s like owning a car and not driving it, or having a tool and not using it. Here, the money is a tool, which needs to be used. But we as consumers have been told that money is this finite thing that we need to hang on to and hoard. We think if we keep it at the bank it’s somehow safe. What a joke. While you are saving your money at a bank and earning 0.05 % APY at best, the bank is lending that money for 4-9% on different credit products and earning return on your money. Does the bank keep your money? I don’t think so.

Now move from consumer’s world to the one of entrepreneur. The entrepreneur knows that the money is a toll and he needs to deploy it to earn returns on it. He knows that saving money is like having a bad employee that just sits around and not producing anything. So many consumers are hung up on interest rates. To be honest, for entrepreneur it doesn’t matter what’s the interest rate. As long as he earns a return on the spread between what the bank charges and his investment, that’s all he cares about. And speaking of money being this finite resource, that’s simply not the case how an entrepreneur think of it. He knows there is an endless supply of money in the world. All he needs are projects that will produce returns for his investors and lenders. Can you think real estate? This is how large multi million projects purchased. The entrepreneur pools investors and they share the returns. They deploy the capital and renew and multiply it as a result of investment.

I hope I was able to change your mindset from that of scarcity to the one of abundance. If not, stay tuned and eventually it will change.

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