Money & The Law Of Capital

The law of capital states that your most valuable asset in terms of cash flow is your physical and mental capital, your earning ability.

Obviously in order to make money you need to be in good physical condition, because if you are unable to work you will be unable to make money.

If you are able to apply your earning ability to the production of valuable goods and services, you will have enough money to do all the things you want in life.

The amount of money you earn today is therefore a direct measure of the extent to which you have developed your earning ability.

Time Is Your Most Precious Resource

How much time you put into something largely determines your earning ability.

If you have poor time management skills and end up wasting your time on unproductive tasks, your time won’t be worth very much at all.

At the end of the day, your time is really all you have to sell.

Time & Money Can Be Spent Or Invested

Once time or money have been spent they are gone forever and you cannot get them back. You can however invest your time and money so that you receive more time or money later on.

If time or money is invested in learning new skills or knowledge, then you will increase your value which ultimately will increase your earning ability and your cash flow.

This is why you should always invest a portion of your income each month into personal development, so that you can work on becoming better at the things which are most important to you.

The Best Investment Of Time & Money

One of your major purposes in life should be to increase your earning potential, to receive the most amount of money possible in exchange for your time.

An effective way to do this is to identify the highest value uses of your time, and then to focus more of your time on doing those things.

Always look for ways to increase the amount of money you receive for what you do to raise your earning potential.