What is the most effective way to become wealthy?

[Brutha]

Among the two choices, what do you think is more effective?

[Technicolor Tim]

Based on what I've seen myself:

Do what you love and do best as well as you possibly can. In today's society there are probably lots of ways you can translate that into lots of money.


These type of questions should take into account who you are, though. If you really are into money, then finding the most effective ways to produce money for yourself might work well. If you are NOT really passionate about money, you're better off putting your focus on something else. People frequently mess this stuff up by pursuing the wrong goals.

[Boreas]

I think google is the best example of focus on value=money ... and still look at all the things they provide for free!

[Illumination]

Why separate the two to begin with?

Focus on providing value that rakes in money. It's a cycle to me.

If you provide value, you should get monetary returns. Once you get monetary returns, you then use it to innovate and improve your productivity to provide even more value. And so on.

[javed]

Originally Posted by Illumination

Why separate the two to begin with?

Focus on providing value that rakes in money. It's a cycle to me.

If you provide value, you should get monetary returns. Once you get monetary returns, you then use it to innovate and improve your productivity to provide even more value. And so on.

I tend to agree with you.
Though most people in the poll will click "focus on value", but ultimate objective remains the money.

Why not both??
Just try to provide more and genuine value

Anyhow,

provide value only ... You are a saint (Normally referred as DUMB or STUPID now a days ).

Provide value for getting money..... You are a SMART enterpneur

Focus on getting money for lesser value provided ... You are a cheat

[lasti]

We're just too influenced from Steve.

[Mantius]

I agree to focusing on both providing value and thinking of the money. You can focus on making tons of money but be prepared to provide value so the money can come to you. The two work hand in hand.

[sbdiane]

I was told to focus on providing value long before I ever heard of Steve. Providing value is the only thing you really have to offer. It's what will get you the raise/promotion or make you successful if you are self-employed.

[Cyllya]

I'd say you get money by focusing on value...

BUT you become wealthy by focusing on money. Because if you earn twelve million dollars, spend it all on hookers and a mansion with gold-plated gates, then get the mansion taken away because you can't pay the crazily high property taxes... you're not gonna be wealthy despite all the money you earned.

[Akashic_Librarian]

I think its about knowing who your trying to sell what, to.

[seeker5]

Originally Posted by Brutha

Among the two choices, what do you think is more effective?

I would think the best way to get the answer is to look at those people who are actually wealthy. I'm not wealthy, financially, so I can't speak from my experience yet.

However, when we look at other people who became wealthy relatively speaking, it seemed that they focused on doing something they love, became really good at it and contributed so much to the world and in return got wealthy. I think of Bill Gates, Steve Jobs, Warren Buffet, they all concentrated on what they loved first.

[funchy]

What does "providing value" mean?


The thing about becoming wealthy: you don't need to be making high six-figure salary to retire wealthy. Make your money work for you. In other words, invest invest invest.

We live in a culture so obsessed with shopping. Think hard about what you need vs what you want. A big-screen tv is a want, not a need. A new Lexus is a want. A fun shopping spree at the mall is a want. STOP SPENDING!

If you put just a small % of your salary away now, when you're older you can be quite wealthy. It's the amazing power of compound interest.

I personally found it helpful to have a savings account that automatically takes $xxx out of my checking the 1st of every month and puts it into an account not hooked to my ATM card. It does the saving for me. And if the money isn't there in my checking acct, I can't spend it.

Get rid of credit cards. Live within your means.

I found that by refusing to buy a car on credit, it's really freed up alot of spending money. A $20,000 car can turn into a $40,000 purchase with a long enough term and with a higher APR. No my car isn't new or expensive, but it's relaible. It feels *good* not to have a car payment.

I found that by just refusing to do some things, it made a big difference. I can look good on a $20 shirt that was on sale at an outlet store just as much as someone wearing the full-price $80 version. Maybe I have to wait for a sale, but oh well. Maybe I don't need a new wardobe every year. Maybe I can have a really nice vacation without going to a big-name waterfront resort.

In short, cut expenses and always invest a % of income, and you don't need to be a workaholic to live a really comfortable life.

[1000feet]

If you want to become wealthy you're already focusing on money. Yes, a few people become wealthy accidentally - how is that different from gambling on the lottery?

[actualize81]

I look at providing value as giving away some type of service, knowledge, product without really expecting much in return. Giving value is putting someone else's needs above your own.

Look at Oprah, when she dedicated her show to helping others (providing value) she said that her ratings and income grew exponentially. Pretty cool huh? So providing value to others is awesome because whether you want it or not, it'll come back to you.

People who become wealthy, for the most part, learn to fill a need that others have.

[sbdiane]

Originally Posted by funchy

What does "providing value" mean?

I learned about adding value when my boyfriend got me a job at a software company. I went to a meeting with all the developers and understood not a single word they said. I complained that I felt totally useless. He said that's ok, keep going to the meetings and when they ask for my opinion, even if I understood only 20% of the words they said, go ahead and share because my point of view is the way for me to add value to the meeting.

He always encouraged me like that. Keep showing up, keep contributing, keep learning. I kept doing that and sure enough, the more I learned, the more I shared and the more they came to value me.

It's like that in life. Keep showing up, keep contributing, keep learning and try to share it however you can. It's the only thing you really can do.

What is the alternative? Try to find an idiot out there willing to pay you big bucks to do nothing of value? I suppose a lot of people are hoping they can get away with that, but I don't think it's going to work.

Money is just a tool. I know people with almost no money who provide value by being an inspiration to others, by doing something others only dream of and then sharing that experience with others. That inspiration has been invaluable to me. It makes my life richer. It dares me to dream.

Wealth is not just money. It's time, it's joy, it's learning and sharing, it's living life to the fullest. If you asked me the question in the title of this topic open-ended, "What is the most effective way to become wealthy?", my answer would be to go out and do what makes your heart sing. True wealth is when you're in sync with your purpose, doing what you were put here on Earth to do.

[Still Growing]

The question itself is a little redundant.

In a free market , if your focus on money you'll have to figure out how to provide the highest perceived value.

In markets where there are the highest unmet demands you will ususally find that the value of meeting that demand pays higher (on average).

If you focus only on money and provide no value you will be unsuccessful. If you focus only on providing value on situations that have no unmet needs then you won't make money.

I'm a serial entrepreneur and good at building businesses from scratch into medium sized, profitable businesses. What I'm saying is based upon my experiences.

[Brutha]

In a free market , if your focus on money you'll have to figure out how to provide the highest perceived value.

There a huge difference between value an perceived value.

[seeker5]

Originally Posted by Brutha

There a huge difference between value an perceived value.

Hmmm. Isn't the only thing that matters is perceived value, as there can be no objective value in any object unless it is perceived to be valuable by others?

If no one perceived Steve's article to be of any value, then his articles would have no social value to the world, and he would not be able to make his income through this website. So, perhaps value and perceived value is one and the same?

[Brutha]

A car salesman can lie about the car he is selling and in the process signifantly increase the perceived value of the car.

[seeker5]

Originally Posted by Brutha

A car salesman can lie about the car he is selling and in the process signifantly increase the perceived value of the car.

Oh yeah, I forgot about people using non-truths

[actualize81]

I would say the most effective way to become wealthy is to brand yourself as a leader. That is what Pavlina did. It's not about a blog, business, or job really. When you have the courage to put yourself out there, based upon information you obtain yourself and become familiar with a set area of knowledge, you generally are perceived as a leader.

It can be scary at first, but being perceived as a leader has huge advantages. Most people prefer to follow others, but that is what separates those that attract abundance vs those who do not.

Even spiritual guru's are leaders...

I started making more money than I thought possible because I began investing in myself and began providing value to others.

[lenfoster]

Fair exchange still works! How much money you have is just an indication of the value you give.

[borntosucceed]

Taking a long-term view it is definetely focusing on providing value in what you offer.

Focusing on money might work short-term but if there is no value in what you are offering the rewards are short lived.

[tycoondreamer]

Originally Posted by Illumination

Why separate the two to begin with?

Focus on providing value that rakes in money. It's a cycle to me.

If you provide value, you should get monetary returns. Once you get monetary returns, you then use it to innovate and improve your productivity to provide even more value. And so on.

Provide value first. Money will come when people start demanding the value you are offering. Value creates demand.

The reason you can't mix the two is that focusing on money early on will dilute your focus on providing value. For example, if you're giving away free information, you start attracting a lot of people. Those people will equal money in the long run. But if you're too worried about the money, you might be thinking you're losing out on those early dollars by giving away the information for free. This will throw you off the path.

A more concrete example would be the mobile phone industry. Wireless service providers figured out that if they practically give away cell phones, customers would flock to them and subscribe to their services.

Same thing with broadband internet. Give away the cable/dsl modem to make it easier for people to sign up.

Other loss leaders: Grocery Coupons, Gaming Consoles, Any Other Type of In-store Sale, etc.

The idea is the same with all of these. Create value by giving away something for free or cheap and you reap long term residual revenues.

[Guardian Angel]

Originally Posted by tycoondreamer

Provide value first. Money will come when people start demanding the value you are offering. Value creates demand.

Very true. If you have created an image of a good value giver, this can easily be converted to money. The funny thing is people will not even notice it.

[Dagan]

tycoondreamer, you beat me to the post and very well put.

i'm no expert but the business that i am starting is focusing on providing a free service and then adding to the price at a later stage. Why should my customers invest in something that isnt proven for value? So the best way to prove this to them is for you to invest your own time and effort, to show customers what value you have on offer and that YOU believe in the product. once this is done you should not have to justify your price as the value will do so for you.

Infact why ask the customers for any money at all when you can simply turn the amount of customers into profit through advertising? which is what i intend to do on my internet company

As i said "i'm no expert", but I hope to be one soon

[Still Growing]

Originally Posted by Brutha

There a huge difference between value an perceived value.

Brutha,
You are taking the English too literally or don't understand the term "perceived value" as its used in the biz world. A customers perceived value or CPV is "evaluations of all the benefits and all the costs of an offering as compared to the customers’ perceived alternatives"

Your used car analogy doesn't fit because the consumer will no longer see the value once they find out the car is a lemon.

Typically in the business world when you "add value" it is a given that the value will remain throughout the consumption of the product.

I can understand how you might have misunderstood...

[Brutha]

Brutha,
You are taking the English too literally or don't understand the term "perceived value" as its used in the biz world. A customers perceived value or CPV is "evaluations of all the benefits and all the costs of an offering as compared to the customers’ perceived alternatives"

In the business world you run advertisements to give man the impression that they will have more success with woman by buying a fast car.

It might be true that the customer finds out afterwards that those fast cars don't bring him the success with woman.
Firm still advertise with an intent to increase the perceived value of a product and will tell the world in the advertisement everything that they can get away with.

In addition we have a nice thread about the diamonds business in the other forum. DeBeers tries to increase the perceived value of their products by telling customers that the diamonds of other companies are blood diamonds.

Strategies like that do increase the perceived value in a business setting but don't produce real value.

[Still Growing]

Brutha,
I understand what you are saying and if you literally look at the words perceived value and break them down you are right however in the use of many industry jargons they take on new meaning and their own definitions.

Perceived value in this instance is throughout consumption. Also it is subjective and opinion based. It only matters if the customer perceives the value. Selling a lemon car would not constitute perceived value simply because the customer thought they were getting something they were not. Hence no value has been created.

When a consumer buys a product value can be created by the company during the purchasing experience however the product begins to create value once the product is being consumed. It is not until after use can a product's true perceived value be measured. It is therefore that when business people speak about creating a perceived value does it mean real value (at least to that specific consumer)

I know you tend to question everything I say out of habit...
Are you a marketer too? I mean.... I do this for a living for years and graduated from Business School with a Marketing major. I think I know what I'm talking about.

[Still Growing]

It seems a lot of people are confused about what value really is. Lets examine it.

Value =the market worth or estimated worth of commodities, services, assets, or work.

So no matter how much you focus on giving you'll never make money unless your product or service has market worth. That means that others have to value your product or services as much as you do.

We've all heard "Do what you love and you'll be successful" yet so few people become successful even while doing what they love. Why is that?

If your goal is to make money then do the following:
1. Find something you are interested in or love. You'll need to do it a lot and money will loose its attraction at some point. You should almost be willing to do it for free; Note I said "Almost"
2. Ask yourself "Will others find value in what I'll be providing"
3. Ask yourself "How can I provide this product or service better than anyone else?" Do I have some advantage or special talent? Can I hire someone with some advantage or special talent?
4. Focus on giving the most value possible while making substainable profit. If you do not make a profit (in most cases) you will go out of business.
5. Stay focused and keep your finger on the market pulse. You must be nimble and able to change with your markets changing needs. Market demand changes and so does value. People may value a product today and find no value in it tomorrow.

If you are focused on money only you will fail. If you focus on providing value where there is no demand you will fail. There are no quick answers or one simple thing that will make you wealthy. As I said the question is redundant.