I’m going to keep it very simple. The main reason you don’t have money is because you’re not using money for what it was created for. The purpose of money is to make more money. It has a lot of other purposes, but the primary one is to enable trade.
Luckily there are a lot of ways to use money to make more money. If you’re an employee, using your money to sustain yourself is using money to make more money. By taking care of yourself you’re enhancing your ability to work, to create more money, for you and your employer. If you’re a real estate speculator you’re using money to purchase property in hopes to sell it for more money. If you’re able to successfully sell your property for more than it cost you to acquire and maintain the property, then you’re using money for what it was created. This is applicable to all companies in all industries, all companies use money to try to make it into more money. Successful companies are able to buy $1 for less than $1. Some companies spend $99 billion to make $100 billion in revenue while other companies may spend $600,000 to make $750,000.
Unsuccessful companies (and people) spend more money to earn less money. Most companies (and people) spend more than they make in the beginning. It’s usually this spending or investment that allows the company to generate greater revenues later on. Successful companies are able to chart a path to profitability over time. The two ways to do this are 1) increase revenues without increasing expenses or 2) maintain revenues while decreasing expenses.
