How to Make Money - Three Principles

When you think about how to make money, do you think about jobs, businesses or investments? There's nothing wrong with that, but all these ways have their examples of success and failure. In other words, some people fail at the same thing which other succeed at, and we have to ask why? That leads to a deeper understanding of how to make money, as suggested in the following three principles.

1. Value Trading

Late-night television "get rich quick" infomercials usually cater to people who think there is an "angle" or "secret" which makes it easy. There are tricks, tips, techniques and tools that will help, and this is why these products usually can help the right person. But in the end, making money is about trading value, meaning you need to provide something of value to others to consistently succeed.

Those who think the first question is how to separate people from their money are tempted to use any means, resulting in dissatisfied customers, less repeat business, and eventual failure in most cases. A better first question is how to provide real value. It is serving people well that makes them happy to pay you well, and this is true whether you're an employee (with the employer as your customer) or the owner of a business.

2. Do What's Necessary

Having something of value to offer isn't enough by itself, however. Doing what needs to be done is another often-ignored principle. Commit to a plan and take action, and "do" instead of "try." When we "give it a try" we often quit at the first sign of trouble or unpleasant work. See mistakes as opportunities to learn and move on. The idea isn't to keep repeating what doesn't work, but to learn as you go and keep doing something towards the goal.

Those looking for "easy money" are usually not willing to learn what is necessary. A man hears that there's good money in building, for example, which is something he knows nothing about. Instead of learning what he needs to know he hopes that taking the test for his contractors license is all he needs. A wiser (or less lazy) man might have could have worked in the field for a while to learn the basics, or asked for help to learn how to run a business, or bought a book on how to market his services.

Instead, the easy-money guy he takes the easy route - which leads to failure. Maybe you've seen this scenario played out with friends who think they want to be an actor, start a business, invest in the stock market. We need to do what needs to be done to make money, and learn what we need to learn.

3. Know Yourself

Naturally, it's tough to do what is necessary if you hate every aspect of it, so think carefully about yourself when making decisions about jobs, business and investing. A business you aren't suited to or ready for won't just make you grumpy. When you ignore your interests, skills and abilities it is easy to choose the wrong way to make money - a recipe for failure.

This is an important key to how to make money. There will always be parts of a job or business that you aren't thrilled about, but you need to have at least some interest (and ability) to sustain your commitment.

Ask yourself what you can do, what skills and abilities and work habits you have, and what activities you enjoy. Are you good working with others, and with clients? Do you have a lot of energy? Are you known to quit too easily, and what did you do that contributed to previous failures? Can this business or job or investing path keep you motivated and ready to start each day? What will you need to do, and what are you willing to learn? Are there personal changes you'll need to make? Answering questions like these as honestly as possible may be one of the surest ways to learn how to make money.

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