Fresh off our completion of the 2nd installment of our financial series, I wanted to post a couple of the models that we covered from the show so that you can reference these later.
The first is the characteristics of the accumulation theory vs. that of Utilization. (found on page 43 of Killing Sacred Cows by Garrett B. Gunderson and Stephen Palmer.)
Accumulation Theory:
- Tends toward scarcity in that those who practice it develop the scarcity mindset through years of frugal saving , always in fear of losing their accumulated money.
- Compound Interest is key.
- Wealth is determined by net worth.
- Do-it-yourself, reduce expenses, wait for the future.
- Invest in material things, products and strategies
- Security is derived from accumulated money.
- Investments are unsecured and uncollateralized.
- Higher risk equals higher return
- Retirement
- Diversity
Utilization Theory
- Tends toward abundancein that practitioners learn to constantly be seeking ways to maximize their usefulness to the world, rather than waiting for retirement.
- Velocity is the key.
- Wealth is determined by cash flow.
- Utilize the abilities of other interdependently, increase production, and act in the now.
- Invest in the people behind products and strategies and in clear value propositions.
- Security is derived form human life value, knowledge, experience, and practical application.
- Some investments are secured and collateralized.
- Mitigating risk to near zero equals higher returns.
- Soul Purpose.
- Focus.
Today’s show was awesome and next week’s show promises to be great as well as we talk about productivity vs. minimizing expenses. I would also like to encourage all who are listening to the show to rate the show in Itunes and tell us what you think.
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