For a long period of time, many have subscribed to the belief that it takes money to make money. To me, this is fallacious because many of the rich people today actually began building their empires with very little or even no money. For example, it didn’t take Mark Zuckerberg a lot of money to create the multi-billion social money machine called Facebook. In order to bust such myths about money, this article was written to show you can make money without money.
One apt example illustrating the fact that your money is not needed to make more money would be banks. If some of you do not know, banks simply make their money from savers’ money. When savers deposit $1,000 into a bank, the bank has the right to lend out up to $10,000 to other people via the fractional reserve system.
Here, they pay you 1% interest (which is $10) but charge borrowers 10% interest (which is $1000), earning a net profit of $990 from just manipulating your money and the system. In addition, to lock your money in their vaults, some of them even offer higher interest payments (like 2%) to lure you into parking your money with them, allowing them to legally back up the amount of money loaned.
This is a requirement because by law, they have to meet the fractional reserve ratio of 1:10 where they ought to have $1 in their vaults for every $10 loaned out. Here, it is crystal clear that you don’t need your money to make money. Instead, you need ingenuity, creativity, thought, labor and value to earn it. If banks can make money this way, you also can do it by finding your way by remembering that money is not required to make more money.
Now, if you consider the example of banks to be too far from you, let me give you another example which can be nearer to you. Today, to get rich, the most sustainable way would be to start businesses and develop them to the extent that they provide you steady cash flow. However, many usually get stuck in the first stage because they think money is required to start businesses.
However, this is actually not the case. Instead, you need concept, research, evidence of demand in market, business plan and implementation to convince people to give you the money required to start your business. To do so, you have to show them that it provides them more value to give you their money than keep or use it for something else. Here, everything still revolves around value.
Hence, in conclusion, instead of believing that money is required to make money, you should say that value is needed to make money. Material stuff are simply external reflections of what’s going on internally in people’s minds. To achieve them, use your gifts to positively impact the world!