Make Money Jot

Special Report Series: the Philosophy of Making Money

This is the final entry that I am going to write for series on the philosophy of making money.  For all the other articles, please see: 6 Myths of Making Money – Special Report: the Philosophy of Making Money, 7 Points and 2 Categories of the Philosophy of Making Money, and The 7 Steps of How to Make More Money.

There is a simple formula to follow that is the most powerful formula for creating wealth.

The best formula for making money and creating wealth:

Creating Wealth = Discovering Scarcity + Solving Scarcity

Scarcity

To understand scarcity is not difficult for it’s not a complicated subject, but rather a very common and understood subject.  The difficulty is that most people don’t know how to use scarcity to create wealth.  Scarcity is concept that there are unlimited wants and needs, but there are limited resources to meet those wants and needs.

Example

There is a lot of discussion of different car manufacturer trying to create a “cheap” car to sell in India.  In India, there are a lot of people who want and need a car, but cannot afford most new car prices.  The scarcity is the lack of cheap cars for people to buy.  Solving the scarcity are what car manufacturers are trying to do by creating a “cheap” car.

How to Use

Scarcity creates opportunity.  When you discover scarcity in the economy, you have found an opportunity to make money and create wealth.  All you need to do is follow that opportunity and solve the problem of scarcity.  I suppose that’s a lot easier said than done, but it really can be that simple.  The only difficulty is finding the solution for scarcity – solving scarcity.  That takes creativity or, better yet, innovation.

Innovation in India

The innovation in the example of “cheap” cars for India is how to create a car that:

1. Consumers will buy.
2. Consumers can afford.
3. Manufacturers can still make money (profit).

To read more about this, click here.

Enjoy this article? Subscribe to my RSS feed.