Tuesday, July 11, 2006

300. Money is not real, only the reflection of something very real

If money is not real and is only the reflection of something real, then what is that SOMETHING?

Furthermore, if we treat money as something real, then what could be created that would reflect that money? A check perhaps?

Similarly, I've written many times on this blog that INCOME depends on OUTCOME.

In other words, your income is just a reflection of the quantity or quality of the outcome you produce. If your income is NOT an accurate reflection of your outcome (or what Robert Shiller calls your "marginal contribution" to the employer), then your income has been set "arbitrarily" in a bureaucratic way.

Translation: they can decide, at any time, to give you the pink slip.

So what is the success secret?

The secret is to realize that MONEY is a PERCEPTION. Similarly, VALUE is a PERCEPTION.

Since human perception can be shaped and manipulated endlessly, value is therefore highly variable.

Because value is highly variable, the money employers or clients pay you is ALSO highly variable. It all depends on how you preemptively shape and control their perception.

To put it bluntly, your value resides in THEIR head.

Unless you somehow "get into their head," you cannot control your value.

Of course, you might be able to get into their head but if you make a mistake, then you might actually diminish your value.

Example of a mistake:

Boy: The other day, I was walking down a romantic street with nice houses, and I suddenly thought of you!
Girl (ecstatic): Oh, really?!
Boy: Yeah, I saw a house with pretty colors and I said to myself: "Hey, that reminds me of... what's her name again?"

Here's another success secret: Since value is based on perception, and perception depends on what/how/when you communicate with clients and employers, then the MORE you communicate, the higher your value will increase!

Let me repeat: the MORE you communicate, the higher your VALUE.

(I should write a best-seller called "Communicate & Grow Rich" -- the ideal companion to Think and Grow Rich).

Does that mean the folks on Linkedin who have 500+ connections are communicating and thus getting rich? No. Most of them don't communicate at all. They just want to increase the number of connections they have.

Communication means you send a personalized message to a specific person showing that you believe he/she is special, appreciated, important and respected. Oh, yes, you also mention what it is that you are the BEST at, in case they need your services.

That's communication. That's true-blue networking. Everything else is vapor.

Ultimately, how rich you are depends critically on how good a communicator you are.

Bottom line: Money is not real. But it is an accurate reflection of the quality of your communications to other people.

If you communicate well, then other people will be convinced of your value (or the value of your products or services). In that case, the money will go from their wallet to your wallet.