Based on a podcast by Shane Krider
What is money? How does it come into being? How can your beliefs around money affect how much you attract? To invest or not to invest?
Very few things in life are misunderstood like money. For me, it seemed like the harder I tried to make money; the more I spent in the process and never got anywhere with it. Then I did a lot of self-education and made a mind shift to create my success.
Back in the day money was like gold and a lot of people wish it were still backed by gold when you could actually exchange cash for real gold through the government. In 1971 that changed and we went to fractional currency.
Some people like to side with those who think negatively about our financial system, and so are perpetually preparing for the worst. This is a mistake. Some of you might not really know or care, but at the same time would like to learn this concept of wealth creation. Many people would like to get money to work for them and get moving in wealth direction but don’t, and don’t even know why. I see this a lot.
Mind power is all about how our beliefs create outcomes in our life. And mostly we gain beliefs just through osmosis and we’re completely unaware. We can have steadfast belief in people, and we decide they know what they’re talking about so believe what they’re saying. Whether you’re looking for wealth, physical fitness, or razor sharp astuteness, you should be able to obtain it. And if you’re not it’s because your belief system doesn’t support having it. It’s that simple.
All that stuff we hear on the news, the perpetual drama cycles, and the negativity around our economy, we absorb it and don’t even know it. We should be standing guard at the gates of our minds with every piece that comes in but we don’t. So if you’re not achieving what you desire out of life, in some part (in my opinion a large part) there’s a level of hopelessness. You cannot take action when you’re confused or hopeless.
So you say to yourself – I want to create wealth. How do I do that? Become an entrepreneur, raise income and at some point start investing. Should I? Is it the right time? What in? Stocks? Real estate? And what actually is investing? What is money?
Let’s gain some understanding on these things that contribute to a lot of that hopelessness and confusion.
When it comes to money, opinions and investments, you are not going to find consensus so you have to drill down to the fundamental layers and levels on the subject so you can actually gain a consensus for yourself.
So what is money? Why is money not gold? Gold has zero intrinsic value to a human. It’s the worst way to hold wealth for many reasons, and the government proved this when around the Great Depression, they decided to recall all gold. You’d literally be a criminal if you didn’t hand it in, and received nothing in return.
So the government has proven they’re willing and able to rip gold (or any alternate currency) out at any given moment. So the question is, if the money system is really failing, will the powers that be let that happen? No. If the mainstream financial system is ever really in jeopardy, it will be protected at all cost and all alternatives will be cut off.
Gold’s not money. Gold represents money. So hypothetically, how would you trade your gold? For a product or service. And the process of building, creating, growing is a service; therefore money is a placeholder for service. So when you’re holding money in your hand, what you’re really holding is a concept humans have created to store the value of a previous service.
What this means is, money represents yesterday’s service. And if you think about it our entire world is built on service that has already been rendered. Our entire infrastructure: the water system, electricity, the Internet, the iCloud, the roads, the buildings, sewage, all these things are yesterday’s service to us, and that is what our current money is based on. But this infrastructure is getting older and falling apart with every passing day.
The money we have in our pockets actually loses value over time because that money represents an infrastructure that needs to be maintained and advanced. So once we went off the gold standard, money started losing value.
Money only represents value. We’ve got a fractional reserve currency system, which allows the government to invent money. And because of that there are two things that can make you feel hopeless about the system:
- Nothing backs money because it’s no longer based on gold.
- Now all money comes into being through the fractional reserve system meaning that all money today is borrowed into existence.
Holding that physical currency in your hand, that is debt, it is owed. All money that comes into being is borrowed and must be paid back. People say this is a system that must fail because all money is accruing interest and interest is debt and it can’t keep up with itself. But it can.
Money itself is based on nothing so it is infinitely expandable. If you start really taking a look at the system that exists, it is not perfect, but it’s worth betting on.
Money represents past service. Future money has not yet been created, and billions of dollars are created every day, literally being borrowed into existence from the money pool we all share. That pool will expand by billions of dollars TODAY by people buying cars, houses, TVs.
The more products and services we create that motivate people to work hard to earn money to purchase it, the more money is created in the process. So people wanting the latest gadgets / products / goods, and wanting to work for it, actually brings into being the money and the jobs to obtain the material goods you covet.
Creating goods creates value because people are willing to work hard for that value. And by working hard they’re providing service, and create the jobs that ultimately support the creation of money.
I have interviewed 10,000 people while building my businesses. I advertised specifically to find people who want to make more money. A LOT more. What I found was a lot of people totally conflicted about money because they’re confused by the system. My advice is to bet on the system, it’s beyond good enough, it’s the best ever.
The world we are creating is better than it’s ever been. It is unbelievably amazing. It will move forward with or without you. The big companies that currently exist – Apple, Google, Amazon – want to be wealthy, so just buy one stock and never sell it. In 20 years you’ll be able to retire from it.
When you’re investing in a smaller company – say an upcoming tech company – that holds more risk because there’s more room to make a mistake. If you’re a geek in the industry and you really understand the ins and outs of the technology, then you can totally hedge your bet, those will be ridiculous returns in the short term. But in 10-20 years the big companies will just keep growing, they’re creating the future and the promise of the future is what creates future money. This is where you want to invest.
My point is not to show you why or where to invest. The point is you should have an optimistic outlook at life, look at the obvious, what companies are creating the future and bet on them, believe in the system, turn the news off, and bet on the obvious. The biggest companies will become so much bigger and you can go along for the ride for nothing but an investment made today.
Anyone can be a self-made millionaire. And it’s not going to take a whole lot a work just some belief, optimism and perspective and you could be creating whatever you desire.
Shane Krider