7 Principles of Prosperity™
Prosperity Economics are The Economics of Certainty
It is assuring that what you want to happen, WILL happen, without taking unnecessary market risks. Should you decide to venture into the markets, your risk is mitigated.
1. THINK – Owning a prosperity mind-set eliminates poverty; scarcity thinking keeps you stuck.
2. SEE – Increase your prosperity by adopting a macro-economic point of view – a big picture perspective in which you can see how each one of your economic decisions affects all of the others. Avoid micro-economic “tunnel vision.”
3. MEASURE – Always measure your opportunity costs – what your dollars could earn if you did not spend or commit them elsewhere. Awareness and measurement of opportunity costs enables you to recover them. Ignore this at your peril.
4. FLOW – An important measure of prosperity is cash flow. Don’t focus on net worth alone. When money moves, money makes money.
(In business, free cash flow (FCF) is the most important metric, because it is almost impossible to manipulate. Net worth and earnings can sometimes be “managed,” if nefarious management teams are so inclined. . . But you can’t fake cash coming into a company’s bank account.)
5. CONTROL – Those with the gold make the rules; stay in control of your money rather than relinquishing control to others.
6. MOVE – The velocity of money is the movement of dollars through assets. Movement accelerates prosperity; accumulation slows it down. Avoid stagnation in assets where dollars accumulate but are not put in use. Don’t let it sit idle. Put money to work.
7. MULTIPLY – Prosperity comes readily when your money “multiplies” – meaning that one dollar does many jobs. Your money is disabled when each dollar performs only one or two jobs.