Which is cheaper, Sand or Gold?

The answer may look simple but a lot of people actually got it wrong. Of course I am not referring to Sand and Gold, I am referring to Time & Money.

What is the similarity between the two? It is in the quantity that they are being found. Sand and Money are infinite whereas Gold and Time are finite. There is countless amount of Sand and nobody really knows how much money is there in the world. Money is nothing but printed chemically treated paper. Furthermore by taking out gold as the reserve for Money that can be printed, some countries can just print as much as they want to.

On the other hand, Gold needs to be mined. Great investments are done by companies to dig out new gold. And this precious metal became attractive to peg against inflation when the dollar is falling in value. Similarly, we live a life with something called “life expectancy”. It somehow predicts how long an average person may live. We only have a limited period on earth.

Would you change Gold for Sand? Definitely not! So why change Time for Money?  Can you be rich by exchanging your finite Time for infinite Money? Hard to say, let’s look at this equation:

(Money Generator) X (Externalities) = Income

Let’s take a surgeon for example. They make tons of money but yet year after year, I do not see any of them make it to Forbes World’s Richest list. Surgeons have good Externalities conditions such as specialized skill set, market value and so on which are worth good money. However, as the Money Generator themselves, surgeons are bounded by “life expectancy”. In another word, there is a limit to how much a surgeon can earn in his life. Technically speaking, they are still selling their Time for Money but of course their exchange rate is great.

So are you doomed if you do not have great Externalities and your “exchange rate” for Time to Money is low? Of course not! Just avoid exchanging your precious Time for Money! Period. What should you do then?

Exchanging Gold for Sand does not make sense. How about exchanging Sand for Sand? To earn infinite Money, your Money Generator must be infinite in Time. It should be Timeless. What are Money Generators that never dies? These are Companies, rental properties and dividend stocks just to name a few. Of course I have the assumption that these entities are well managed and do not go out of business along the way.

If you have a freehold property that provides you with a rental income, how much income can it provide? Infinite.

If you have a profiting company, how much income can it give you? Infinite.

Get the drift? To earn Money which comes in the form of infinity, the best way to earn it is through another entity that is Timeless as well. People should then channel their finite Time to build entities that can earn infinite Money for them. Multiply their Timeless Money Generator with good Externalities, financial freedom can be achieved.

It does not make sense if you got Money but losses the Time. Rich people got all the Time & Money and live life to the fullest. Stop selling your most precious asset for something that comes in abundance. Rich people believe in delayed gratification. They are “farmers” sowing seeds and knowing that harvest will come one day. Use your Time wisely. Use it to build a Timeless Money Generator for yourself.

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