How can money make money? I’ve been asking this question ever since I was introduced into the world of business. I was told that the concept is simple – every living species on this planet make more of their same species everyday. But I knew it wasn’t that simple.
So I went ahead and did some research to find out how can money make money. It didn’t take me long to discover that it is not only possible but doable. But how?
Over the years, I was able to breed money by following one, yes just one, simple rule.
INVEST MONEY INTO BUSINESS
Let me share with you a short discussion I had with a Chinese businessman a few weeks before I got married. I basically asked the guy for a tip on how to start on business. After all, I’m getting married and I still didn’t have my own thing going. His answer was simple and profound.
He told me that if he has nothing and I give him a dollar, what he’d do is he’d buy some bananas, some barbecue sticks, some cooking oil, borrow a frying pan and a stove and start making banana cues. He’s then sell the banana cues that he made and make a profit.
Furthermore, he told me that instead of spending his profit, he’d reinvest it in his banana cue business, cook more banana cues and sell more the next day making him an even bigger profit.
Following his line of thinking, he soon would be able to buy his own frying pan and stove. Eventually, he’d be able to build branches and so on and so forth.
Simple huh? Yes, very simple and that’s the whole principle of investing.
So, how can money make money? Answer: By investing money into business.
THE HEART-BREAKING PROBLEM
Majority of the people do not think like the Chinese businessman. Instead people think more about spending than investing. Give someone a dollar and he’ll go spend it on something. Give him more than a dollar and he’ll do the same thing.
The good news is you don’t have to be like the majority of the people. You can be like the Chinese businessman.
And that’s the answer to how can money make money.