Furious Fridays

If you think that you’re a victim, you are really your own oppressor! Building wealth and demand in an Inclusive System

Welcome to Furious Fridays! Make sure you’re caught up with last week’s episode about the system and what it should provide System – Inclusive Vs Extractive systems
  1. Inclusive – Equality of opportunity – everyone has access, same rights, no preferences
  2. Accountable – Can’t be extractive: held accountable and easily removable, transparent
  3. What system provides – what incentivises should be available
  4. Property rights – keep what you own
    • Ownership of what you own and purchase,
    • Patents
  5. Legal system – protect what you have, know deals are honoured
  6. Contracts
  7. Borrowing
  8. Public services – Well functioning state; police, infrastructure, education
Use what the system provides – What has worked over history
  1. Extractive system – those that rise to power and keep it, sucking wealth up (short term for some)
  2. Inclusive system – those that do it on their own and keep it.
Your incentive: increase the incentive of others to exchange money with you.
  1. System provides freedom – freedom of exchange of money is the first part
  2. You have wants, you buy goods/services and exchange money for it
  3. Wants – Things to be met by products and services
  4. Products and services – the vehicle of wealth transfer in a free market
Options on how to have individuals voluntarily transfer wealth to you:
  1. Create the product/service – New idea, or improvement to existing
    • Demand for a product of service
    • This is what people need, and will exchange money for
    • Built around solving problems, or convincing people of needs (marketing)
  2. Participate with an existing product or service – employment
    • Demand for you and what you can do to improve the product/service
    • What you know to help? How can you get to know more?
    • How you can use it to help?
Creative destruction: mechanism for societal improvements
  1. Extractive economy – too destabilising = lose power. Stocking producer in England – Elizabeth banned him from doing it, but he had to go through the state to do, went to France, same story.
  2. Inclusive – If you think there is no money in something as nobody is doing it, there may be money.
    • What do people need? People solving problems – wealth is transactional under this system.
    • Or, Who do products/services need?
Where do you start? Figure out the area to focus on
  1. What are you good at?
    • Individuals have talents – mine is numbers/theory, don’t give me an English test.
  2. What you like to do?
    • Happens that as I am interested in finance/economy, which is thankfully has theory and numbers
  3. If you don’t know: Get a list together! See if there are cross overs.
Once you have it: Either what product/service you want to work with, or create yourself
  1. First step – increase your demand – have to provide greater value than cost (PROFITS are incentive)
    • Product – Best product or service, or what people value
    • Individual – what do companies need?
  2. Second step – Once people transfer wealth to you invest your surplus
    • Reinvest in business/build outside investments
    • Invest personally to build personal wealth beyond transfer of wealth
  3. Third step – keep repeating steps one and two again & again
Along the way: Tools at your disposal
  • Systems to take advantage of
    • Property rights – you keep what you earn/save
    • Borrowing – leverage your wealth to access capital to invest
    • Legal system – minimise tax and protecting what you own
The really wealthy have always done this well
  1. Created a product/service people really want.
  2. Kept reinvesting and creating more to fulfil peoples wants.
    • The more people want what you have, or the more people want what you can offer them,
    • the more you are in demand, the more you can demand for your good,
    • the more people will transfer your wealth.
THE BAD –  Crooks and people who transfer wealth to themselves, for poor or no service
  1. Obvious flaw in the system – transfer in wealth needs to be beneficial, informed voluntary decision.
  2. Market crashes occur – thanks to human behaviour – but the market learns
  3. Human nature – we are more self-interested than altruistic
    • Works in small numbers – help your friends/tribe, etc.
    • But when in millions of people, humans’ motivation on average is the self
    • Why shared group work people slack off – for additional effort you put in, little additional reward.
    • NEED INCENTIVES!
Our stories
  1. Jayden and my story are similar – Started PAYG – saw problems with the systems, wanted to improve.
  2. Started own companies – potential to do a better job at helping people
  3. Provides freedom to improve what you are doing.
    • When you are starting out – you really want to do a good job, if you can’t help people, your business fails.
    • When you are comfortable at the top – what are your incentives? It’s pretty hard to change, but the old models don’t work for new world – Creative destruction
In summary
  1. Become “In-demand”
    • Product/service
    • You are the product – measured by how much people want you
  2. Decide what you want to be demanded for
    • Get really good at it, or
    • Create a product people want.
  3. Keep some of the wealth transferred to you to invest (keep/save)
  4. Keeping improving!
    • Product – Reinvest the rest, do a better job, and
    • Self-improvement
If you think that you’re a victim, you are really your own oppressor! Leave a review, ask a question or provide some feedback. We love hearing from our listeners! Go to https://financeandfury.com.au/contact/

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