I am sitting at my desk at home just wondering why someone who has so much knowledge in a particular area is still broke.
Knowledge, expertise, or experience does not automatically translate to money if knowledge translated to money then those with the most knowledge will also be the wealthiest if expertise translated to money, then those who are specialists should be the wealthiest, what about the experience? forget that one!
A simple observation of your immediate environment will confirm my argument.
Creating wealth is a science if you do not understand the science of wealth creation YOU WILL BE POOR! Sorry, I am harsh, but that is the truth.
My curiosity moved me to do some quick research (My laptop and Google are my dependable allies) and what I discovered was simply amazing, want to know what my discovery was? Read on…………….
I discovered that all individuals have a wealth creation equation (WCE).
Let me explain this with some examples:
1. If you are unemployed and currently earning N0 (zero naira) your wealth creation equation is zero!
WCE = 0
2. If you are employed and earning a salary (Let’s say N55,000) your wealth creation equation is:
WCE = [Salary] – Taxes = N50,000 (Take home pay)
Let’s assume you want to save a million naira how long will that take? Mathematicians in the house?
That is about 37 months, that is if you do not eat, pay rents or wear cloths (No pun intended).
Now, you will agree with me that this is a very inefficient way to earn one million Naira.
so the WCE = 37 X [ Take home pay ] = N1,000,000
Now, see the equation below:
So, if you were an expert (and still working for a salary) but you write and sell ebooks, organize workshops, and do some consulting, your WCE may look like this:
WCE = n[take home pay]+ n[5000(# of ebooks sold)] + n[20,000(# of workshop attendees)] + n[50,000(# of consulting gigs done)] – [expenses]
Let’s assume n is the number of months, and 5000, 20000, and 50000 are the price of the ebook, workshop fees and consulting fees respectively)
With this equation, is it going to be easier to make a million naira?
To make this even more interesting, there is some aspect of this equation that can be automated almost completely.
Your wealth equation should not be static but modifiable with time.
WHAT IS YOUR WEALTH CREATION EQUATION?
Your financial destiny depends on it.
Written by Abayomi Olufemi