Friday, February 10, 2017

What is the Money Matrix?

The sad truth today, the majority of people do not know anything about money. Living paycheck to paycheck is the result of living without the knowledge of how money can help you or hurt you. Living without the power of conventional financial wisdom will naturally put you behind the eight-ball of making good money decisions.

If you only study one concept about money, you should know about the Money Matrix concept.  The Money Matrix is how wealthy people think about money. The Money Matrix is the gold standard on how you should think about money going forward!  If you learn this simple little piece of knowledge, I will guarantee you you will not be in the majority of people living paycheck to paycheck once your start using the principal of the Money Matrix.

This is the most powerful concept for understanding how money is used and how to build financial wealth.  This is how the wealthy continue to build on their wealth and how the poor continue to stay poor.  With the Money Matrix, you will be be able quickly identify if your money will be working for you of if you will be working for money.

The Money Matrix are two pyramids stacked at opposing ends, one pointing up and the other pointing down, working in contrast with each other.  In each pyramid are the four roles of money:
  • Capital - Money invested in anything that is expected to grow in value
  • Cash Flow - Money generated from investments
  • Cash - Money held is reserves on a temperaty basis
  • Consumption - Money spent on anything not expected to grow in value

Wealth Building Principal

The wealthy mind set will use Capital to create Cash Flow, which will provide Cash, which allows them to be consumers or use money for Consumption.

On the darker side of the Money Matrix concept, the uninformed, starts to use Cash to be a consumer, or has a Consumption mind set, which becomes harder for them to produce more Cash, and even harder to invest in Capital to produce Cash Flow.  They will have to continue to work, trade time for money, to produce more income before they have a chance to break the cycle to produce Capital.

The wealthy mindset understands they will need to set their focus on creating Capital and Cash Flow today so they will be able to have the freedom tomorrow.

In order to get out of the hamster wheel of living paycheck to paycheck you will need to understand money is an opportunity to invest and create Capital and Cash Flow.

When you change your mindset and use money to create Capital, something will truly change in your life: You will slowly start to see your money start working for you! Now you are working and now your money is working for you! Your money is making money for you! The more time you invest more of your money to create Capital and creating more Cash Flow, you will start to see a significant change in your net worth.

The lesson here is to make some short term sacrifices, change your mindset and set new priorities to be able to build a strong financial foundation.  The Money Matrix concept is not an overnight get rich scheme... it's a life long mindset to control your future.

I encourage you to overcome the impulse to spend your money on consumer items and start thinking about using your money to produce Capital!

So I ask you, do you want to be a consumer and living paycheck to paycheck forever? or do you want to take a moment and understand how the wealthy use the Money Matrix in achieving true financial wealth?



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