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Build-Up Your Own Economy, And Stay Away From The “Experts”
If you watch the news or pay attention to the financials they spew at you everyday, chances are you’re being downloaded with how sour the economy is. It’s unfortunate if you believe it.
I’ve heard from “experts” on their opinion of what an economy is. They like to throw all kinds of “jibber-jabber” and confusing jargon to make themselves sound smart to intimidate you, however I like things simple because wealth is simple. So I’ll give you my definition of the economy and the GDP;
When you get paid, you have money and spend it. That’s the economy.
When people are buying and selling, the economy is thriving. When you go to work, the economy’s working. When the media screams about the economy lagging, it’s time to turn the TV off.
So what’s A “GDP?” It stands for “gross domestic product”. Let’s break it down;
GROSS – is how much you make BEFORE all expenses.
DOMESTIC – is every activity that happens inside your home that could affect the outside world.
PRODUCT – is something of value the market is willing to purchase, thus revenue coming in your domestic home.
Example: if I’m selling lemonade from my house for $1.00 a cup and there was 100 cups that cost me $20 (they’re Dixie), and the lemons and sugar was $30 (organic) and I sold them all, I generated $100. That means my GROSS is $100, my products is DOMESTIC (made in my house), and the finished PRODUCT gave someone who was thirsty some value (they buy it).
The question is, what do I do with my $50 in profit? That’s where your surplus comes in.
So to recap; your GDP is anything of value coming from your home that the market’s willing to buy and your home generates a surplus (profit).
Next is your GDP “per capita”. According to Wikipedia, (per capita) is dividing the household’s total income by its total members.
For example; you have a family of four. Each have their own little business. Each member is generating $1,000 a month which comes to $4k a month (or $48k a year). Divide 48 into 4 and you get $12k per capita.
This will help you determine if you want to bump up that number or not based on the performance of each member’s business, and how it’s benefiting the household’s GDP.
The whole premise of this is to get our minds off the distractions of financial phenomenons we can’t control, and back home to what we can. You can control what business goes on with you and your family tonight, not in Wall Street.
The “experts” might be good at determining the value of Wall Street, but they have no idea what’s in your household budget and balance sheet unless you tell them. You tell them when you subscribe to their “doom & gloom” predictions because you most likely regurgitate their “advise” to everyone and you all feel broke.
Your own household economy can start right now. We touched on what your GDP is, and what your home’s “per capita” is. The experts might rebuttal my simple definition, but remember they depend on confusion and jargon to keep their careers going while you continue to scratch your head.
Stop scratching it with this example;
I had no idea what a financial derivative was until I read this book from the Rich Dad series. Derivatives is basically a substance within a substance. Let’s take an orange juice which is a substance of an orange, therefore an orange juice is a derivative of an orange. Just like a paycheck is a derivative of the labor you contributed per hour at your job. It’s a substance within a substance. This was allegedly one of the causes of the 2008 financial crisis.
Speaking of crisis, I usually get so many ideas, AHAs, and self discoveries during crisis. I’m curious if the word “Cris-Is) is a derivative of something bigger.
Another important example I want to highlight pertaining to your own GDP:
Every household I’ve lived in and visited made groceries at the local grocery store in order to keep the refrigerator and pantry stock, thus keep food on the table. I would assume about 97 percent of households in America (and the world) does this due to the convenience of supermarkets. So you more likely keep a monthly budget on grocery shopping (except if you live strictly off the land and off the grid–in that case, what are you doing here? Hehe). You might agree that grocery shopping is not only a necessary monthly expense—-it’s vital to keep your family fed.
Think about your GDP we mentioned above while I explain;
You go to the grocery store and spend your money, that means those dollars is going to the GDP of the owners of that grocery store. In other words, you’re directing your dollars to improve the GDP of the owners that use that grocery store as a product that produce a revenue for their domestic balance sheet. Then they determine their gross revenue based on you (the consumer) buying from their store you consider is a value for you and your family’s tummy.
So how do you switch that around?
You decided to invest in the grocery store in order to receive some of that gross and profit in the form of quarterly dividends. That will enable you to build up your GDP because you will make money off of every person that walks in that grocery store to make groceries which requires spending money.
Thing is, you might have to invest millions if not billions of dollars to even see an impact.
Whether you can do that now or not, we want to emphasize “GROSS” before profit.
Gross: $2 billion revenue.
Expenses/expenditures: $1.5 billion (salaries, compensation, insurance, rent/lease, etc.)
Profit: $500 million (x executives pay, shareholders, etc.)
Your cut: ??
Nothing wrong with that calculation, the beauty is you’re making a little bit of revenue after ALL expenses are paid. So you have another option.
So we’re both in understanding that your grocery bill is a given in life. You’re going to have it. However how can you REDIRECT that revenue back into your home’s economy WITHOUT investing millions and billions of dollars in the process just to have a voice in the board?
What if I told you that you could improve your home’s per capita by increasing your GROSS, while lowering your expenses across the board?
Let’s look at the idea balance sheet:
Gross: $2 million in raw annual revenue
Expenses/expenditures: $2,400 annual groceries ($20 annual membership. Ex: Costco/BJs/Sam’s Club, etc.)
Profit: $1.997 million (x executives pay, shareholders, etc.)
Your cut: $1,997,600.00 (multiplied by 4 members of your household. That’s $499,400 per capita)
And that’s for YOUR economy. A half a million dollars per capita!
I don’t care what per capita means in textbooks, that’s what it means to me. You can customize it for you too, whatever works for you.
So how do you make that happen?
One of the biggest things we want to touch on is revenue REDIRECTION. You control every single dollar you have in your pocket, and your bank account. With that control comes with power, and with power comes responsibility. However, when you direct that dollar in something that take it away from your own home’s economy, you’re giving up that power.
So what if you turned your monthly grocery bill into a monthly grocery investment?
What if you decided to turn your monthly eating habits from a debit on your account into a credit overnight? And what if the annual membership was so well priced, it would have you question people’s sanity renewing at Sam’s Club, BJ’s and Costco? (Even if they are shareholders–think about the spread).
Just one investment gave you the power to redirect what you’re already spending at the grocery store into a business that turn your home from a liability to an asset in one month—-AND profit.
Consider this regarding America’s GDP; The United States has one of the most stellar and strongest economies in the world, and its GDP runs in the trillions. The United States generate more entrepreneurs annually than any country on planet earth. It’s the second largest manufacturer in the world, and most of her millionaires are being created through home-based business, primarily network marketing. That means we are the exporters that produce products that the world’s willing to buy, which justifies why we live in the wealthiest country in the world—NOT because it’s an opinion, but because you’re here.
AND…it’s the media’s job to distract you by telling you everything on why it’s not.
So going back to your home. You have the most stellar economies in the world where your home’s GDP runs in the millions and billions (depending on you). Your family has something of value to present to the economy, and it starts with you. And your millions are generated by making one key decision; REDIRECTING your grocery money back into your home’s economy.
RECAP: HOW TO BUILD UP YOUR OWN “GDP” IN AN AFFORDABLE WAY?
Gotta start somewhere, right? With less than a penny a year, and a dollar a day, you can build your own Gross Domestic Product NOW. Providing your family with the best nutritional products Mother Nature has to offer, while enjoying the most lucrative premium compensation plan in the industry—-investing in your business will generate a residual income so profitable, your grocer’s coupons and discount card would start to look more like an insult to your financial intelligence.
To your health, success….AND “GDP” 😉
WHAT’S YOUR THOUGHTS ON THIS? SHARE YOUR COMMENTS BELOW!