Article 018: Don't work for money, make money work for you

In Latin, the word currency means ‘to flow’.

Picture a town where everybody is in debt. Each town-person owes money to someone else, and they are all living on credit.

One day, a rich tourist visits the town and enters the only hotel. He lays a crisp $100 bill on the reception counter before he goes upstairs to inspect the rooms. In the meantime, the hotel proprietor takes the bill and runs to pay his debt to the butcher. The butcher then uses the note to pay his debt to the pig-raiser. The pig-raiser takes the bill and runs to pay his debt to the supplier of feed and fuel. The supplier then pays his debt to the town prostitute, who in these hard times, offers her services on credit. She then runs to the hotel with the original $100 bill and lays it on the counter, to pay for the rooms she rented when she brought clients there.

At that moment, the rich tourist returns to the lobby. Dissatisfied with the hotel’s rooms, he asks for his money back and leaves town.

In the end, no one earned any money, and yet everybody got paid. Nobody was living on credit anymore, the town’s debt was gone, and the people looked to the future with a renewed sense of optimism.

For an economy to operate, money has to flow. If you let it stagnate, it will rot and die. When people hide their money away, either in the bank, or under their beds, the economy crumbles. Debt is simply the result of money not flowing.

However, the second people go out and spend, money starts to flow. Supply and demand increase and people start earning more. When money flows in a cyclical process the economy soars.

A rebel entrepreneur understands that in order to make money they have to invest. They don’t let their cash stagnate. Their goal is not to work for money, but ultimately to make money to work for them.