I read a popular theory about money that I would like to examine and discuss. The theory says…

If you took all of the money in a country and divided it up equally among its people, over time the money would go right back to where it was before.

The previously wealthy would become wealthy again in no time. And the very poor would probably blow it on things they really don’t need and become poor again.

Of course, there would be some exceptions. Some poor people would hold onto every last penny they had and find a wise way to invest it.

Likewise, some rich people would become furious with what happened and never make a solid living ever again. I know this would be true because it really does happen on a daily basis! People make a bad investment. Lose all of there money. And never bounce back from their losses!

So now that we understand what the theory is saying. Let’s try to learn from it so we can become someone that attracts money instead of repel it…

What To Learn From This Theory

To get an idea of why this theory is true, imagine that Bill Gates (co-founder of Microsoft) all of a sudden lost every penny he has.

He went to bed with billions and billions of dollars. Then he woke up and found out his bank account said zero. And on top of that, he was somehow fired from Microsoft and never allowed to work there again!

That was a pretty rough night wasn’t it? At this moment, you have more money than Bill Gates! But, here’s something to think about…

How long do you think it would last? Would you continue to be wealthier than Bill Gates? Would Bill Gates become broke and work at some minimum wage job for the rest of his life?

Of course not!

What would probably happen is he would be bombarded with million dollar salary deals to work for several different technology companies.

Why is that? Here is some guy that just got fired from his job. Doesn’t have a penny to his name. And, all of a sudden, is getting constant calls from people trying to offer him millions of dollars?

I’ll tell you why. It’s because he is extremely valuable to the marketplace!

Even though he doesn’t have any money, he is still worth an awful lot. He has the kind of knowledge and experience from running Microsoft that is capable of earning another company millions and millions of dollars!

So when it comes to our money theory, this is part of the reason why it’s true.

If all of the money was divided up equally, the wealthy already have more knowledge and experience then the poor and therefore would immediately start accumulating more wealth.

Think about this with your current situation. If you were fired from your job, how valuable would you be to another company? Do you have skills and/or knowledge that would help make another company a large amount of profits? If not, if you are simply hanging on to the job you currently have, you should probably start changing that immediately!

How do you do this? By constantly learning new things so that it would be a huge financial loss for your company if they were to lose you. If you can do this, you can lose every penny you have and still be very wealthy. Just like Bill Gates.

A Dumb Millionaire

The next thing we need to understand with our money theory is that of spending.

Let’s say, for example, we gave some complete moron a million dollars. This guy is working at Burger King. He spends all of his paycheck each week. But now, he has one million dollars. What do you think would happen?

Do you think he would invest that million dollars? Perhaps in a business that will make him a fortune for a lifetime?

Or, do you think he would buy a sports car. Buy a huge house. Quit his job. And start walking around in three thousand dollar shoes. I’m guessing the latter.

I bet that within a year or two, he would be right back to where he was. Working at Burger King…

…in twenty dollar shoes.

Now, do you think the same thing would happen if we gave Bill Gates a million dollars? Of course not!

There are many important lessons you can get out of this story. The first one that I can think of is to start using your money as a way to make more money, instead of to lose it.

Is that possible? How can we do that?

Well, investing is a good start. They say that money doesn’t grow on trees. But with investing, you can grow a money tree!

Start by picking up some quality investing books. It’s so important that you have a quality investment strategy. If you need a list of books to get you started, pick up one or all of these…

The Little Book Of Common Sense Investing

The Only Investment Guide You’ll Ever Need

The Bogleheads’ Guide To Investing

The Richest Man In Babylon

These books will start you on the road to making wiser decisions with your money. You won’t become the Burger King guy and end up right back to where you were before. Instead, you will take whatever you currently have and use it wisely. You might only have a few dollars to your name right now. That’s fine! Whatever you have is good enough.

You will take what you have and start using it in a way that will make you a fortune.

There are ways to do it! But you have to pick up the books to find out how.

Final Thoughts Of Our Money Theory

Hopefully, you have learned a lesson or two from this money theory.

I hope you have realized that people in this world are wealthy not because of their bank account, but because of the knowledge and the skills that they possess.

I hope you have also learned how valuable it is to use your money better. If you want a million dollars, it would do you no good! It would simply disappear if you don’t know how to use it in an effective manner.

You have to start applying simple, long term strategies to ensure your success with money.

If all of the money in the country was divided equally, would you be the type of person whose income would quickly start to go up? Or, would you be back to living in your current situation in no time?

I can only hope that I wouldn’t be seeing you walking around in three thousand dollar shoes.

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