The World's Richest

Forbes’ posting of the richest men and women in the world reveals a lot for those who are interesting in helping more people in the world.

Too often capitalism has been sullied with the misconception that wealth is only gained at the expense of another. Nobody has ever dispelled this myth more completely than Frederic Bastiat in his small book Essays on Political Economy. (available as free download to your iphone or ipad)

But you don’t have to look way back to the 19th century to realize that this idea of “stealing from others” to make a profit, is a farce. Look no further than yourself and the job that you now work at. Would you be willing to work without payment or compensation? You couldn’t afford to could you? That’s because everybody has to live and you must either be compensated with money so you can purchase the goods and services that you need to live on or you must be compensated with the goods and services themselves in exchange for your labors.

Money is by far the better way to be compensated for your work because then you can freely make a choice of what it is that you want to purchase in exchange for your labor. If your boss simply exchanged food, clothing and housing for your labor, then you would be compelled to work for his choice of those goods and services and that would classify you as a slave and not a freeman.

Owing to this simple fact… that you can freely exchange your labor for what it is that you want to purchase makes the businessman (or woman) the backbone of a free economy. And a free economy is one that raises you above a slave laborer and sets you free to exchange your time and expertise for what you want instead of what somebody else wants you to have. That is why “Businessmen do more good by creating jobs and wealth through investment (and) not by being Santa Claus,"[i] Without the capitalist businessman or woman taking the risk and providing such opportunity, you would be constrained to work for someone else for whatever they thought you needed rather than for what you wanted to exchange your labor for.

So thank you, if you are a businessman or woman providing this great benefit to our society. And if you’re not a businessman or woman, thank you for working hard providing a better and a larger selection of goods and services for all of us to select from when we spend our dollars.

But wouldn’t it be nice to have your dollar that you spend go further? And wouldn’t it be nice if you could spend your dollar and not have to give up the interest you could have earned on that dollar had you not spent it?

That is where your Rx For Wealth[ii] comes in. The World’s Richest understand a very simple concept called Economic Value Added (EVA) which essentially was made known to the world via Stern Stewart’s work. It, EVA, has been called the most successful performance metric of any business. It has to do with economic profit and/or free cash flow, terms which are used synonymously but which basically mean that your money has a cost of usage. If you don’t pay yourself for the use of your own money then you will increase the economic cost of living for yourself. On the other hand if you behave like The World’s Richest and pay yourself for the use of your own money you will free up cash flow and increase your economic value or wealth.

Life is so short! Why not learn how to profit like The World’s Richest. Call our office today. The only regret we ever hear is: “I wish I would have known about this earlier!”

by Tomas McFie DC PhD

Check out Dr. McFie's latest book: Prescription For Wealth

[i]~Carlos Slim, the wealthiest man in the world who has given billions of dollars away to charities.

[ii]~A small book which will chaperon you toward Becoming Your Own Banker and implementing Economic Value Added in your own life.