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Inventing the Wheel vs Investing in It

Sometimes you have to take a risk to reap mega rewards.

Arun Sangwan

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Tom Monaghan, the founder of Domino’s had borrowed R2 000 for his first outlet. Dan and Frank Carney borrowed R2 400 from their mother for the first Pizza Hut outlet. While most microenterprises may not have a Tom or Dan and Frank at helm, it is not unusual for such businesses to grow multifold rapidly. How do you spot one for investing?

Say you have R40 000 to invest. What if your R40 000 could grow to say R200 000 in seven years or so?

If you seek such growth, investing in an established and or a large business will not serve your goal. Why? One, large businesses do not grow as rapidly. Second, a stake in an established business comes at a huge premium. So it does not leave much room for large gains.

What you seek can come from investing in small businesses poised for stupendous growth. You may ask if such an opportunity is an exception (rather than a rule).

No. Most large businesses started as microenterprises or small businesses. Walmart started as a single store. Pizza Hut with one outlet. At that stage their founders too were desperately trying to raise funds. Sure, you need to be incredibly blessed to spot an early stage Walmart, Pizza Hut, Domino’s or Thawte.

However the point is that it is not unusual for microenterprises to grow multifold rapidly. Thawte was founded in Mark Shuttleworth’s parent’s garage, Dropifi in a campus in Ghana and Facebook in a Harvard dormitory.

Spotting a promising small business

Watch out for small businesses that have customers excited about their offerings and are able to sustain such customer response. It is a credible evidence of (or at least a proxy) for superior planning, processes, customer responsiveness, commitment to quality etc.

It may seem like using examination scores as a proxy for predicting success. However at this stage, all you need is to separate the wheat from the chaff.

Related: The Deadly Sins of Investing

Be aware of potential issues

  1. A business may not be able to sustain the level of customer excitement (usage of this term is deliberate as opposed to customer engagement or intimacy) as it grows.
  2. It may not be able to manage rapid growth.
  3. It may not grow profitably.

Remember that no business can grow without resolving the first two issues. Thereafter as economies of scale substantially lower the cost structure, the third gets resolved as a consequence.

Time to talk to the promoters

Imagine yourself talking to a young Tom Monaghan of Domino’s. Tom had borrowed R2 000 for first outlet. He is likely to be interested. So would Dan and Frank Carney who borrowed R2 400 from their mother for the first Pizza Hut.

There is a lot more to a business than a product. So, at this stage it is critical to understand the vision of promoters and seek evidence of their leadership, innovation and problem solving skills. These are fundamental to growth.

Thereafter a well drafted legal agreement will seal the deal.

Never place all your eggs in one basket

Something could go wrong. Should you pick up smaller stakes in multiple businesses instead? The answer is yes. It is likely that as you gain experience over time, you may spot a young Shuttleworth or a Tom Monaghan.

Related: What You Need to Know About Precious Metal Investments

Finally, the skills to organise capital

In this business you need to be skillful in organising and coordinating. Assume the mantle of a leader and form a consortium (inviting the public is not permitted in many countries) of investors.

Think again, do you need to invent the wheel? Or just invest in it?

Professor Arun Sangwan teaches strategy and entrepreneurship for the MBA programme at the School of Business, Alliance University, Bangalore. He is a consultant to leading companies in the financial markets for the development of newer trading strategies and algorithmic trading. His last corporate assignment was as the country manager - India & SAARC for Sanrad. Previously he managed strategic alliances for companies as Hewlett-Packard and Silicon Graphics in India. He has also worked for the Tata group and HCL. Connect with him on LinkedIn or email to arunsanguine@gmail.com for more information.

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26 Comments

26 Comments

  1. Aswathi Nair

    Aug 26, 2013 at 13:27

    A great insight for SME’S across the world.Article is relevant,clear ,address the issues of start ups and written without beating around the bush.A good read of course.Dr.Aswathi Nair.

  2. uday

    Aug 26, 2013 at 15:40

    good one sir..

  3. monami mandal

    Sep 2, 2013 at 16:40

    intriguing insight, well written….

  4. Pooja Patil

    Sep 6, 2013 at 11:02

    To become successful we may not start something, a proper investment in something could also lead us to succeed, thank you sir

    • Arun Sangwan

      Sep 10, 2013 at 06:15

      Perfect. Starting a venture may not be for everyone. we may have different priorities at that point in life or may not have those entrepreneurial competencies, but to make your money grow what is important is to spot a talent (like Tom, Dan and Frank etc) and invest in their ventures. There are so many passionate people who are extremely good in what they do, but need capital. However you should participate only after (remember this) the entrepreneur is in a position to show you an evidence of success, howsoever small it may be.

  5. Akash Gupta

    Sep 11, 2013 at 16:08

    truly said we should never put all the eggs in one basket, we should always try to diversify our portfolio, and should try to buy those stocks which are not correlated with each other.
    Thanks,Prof. Arun Sangwan for such a valuable insight..

  6. Sayan

    Sep 25, 2013 at 20:02

    Perfect Sir… Price is what we pay, value is what we get…

  7. Sipra

    Sep 26, 2013 at 14:58

    Very well written Sir… If we can’t go great things then we should do small things in a great way.

  8. uday

    Oct 1, 2013 at 16:54

    As i read again & again…lots of thoughts are ruling my mind.
    Becoming restless in search of new businesses/opportunities
    Thank you for this.

    • Arun Sangwan

      Oct 9, 2013 at 12:06

      If it can inspire you to start thinking and act differently … !!

      • Arijit ghosh

        Nov 25, 2013 at 14:41

        Congratulations sir, its is an extremely unique and interesting concept!
        – Pritha ghosh

  9. Tanaya

    Oct 9, 2013 at 21:35

    Awesome article…

  10. Ruparna Saikia

    Oct 17, 2013 at 16:22

    Your point about spotting a promising small business has really intrigued me. Although its not going to be easy to assess the potential success of a business in its initial days, after reading this article I am definitely going to be more alert and open minded towards the business opportunities that comes my way.

  11. Hema

    Oct 20, 2013 at 10:32

    A very insightful article sir, though it’s a tough call to make for many –Inventing the wheel or Investing in it. I’d rather keep my opinion embracing the investment part. You have clearly educated us by incorporating the elements of how to play it safe (not ignoring the inevitable concept of Risk Aversion) given the strength of capital, willingness to invest and aspiring an enhanced quantifiable return with the knowledge the investor should acquire regarding the Business type, Stage,Industry, Geography and Capital needs before he starts his venture with that particular business.

  12. vikranth

    Oct 21, 2013 at 05:29

    provides lots of new ideas and new ways…lucky to come across..waitin for few more like this to come..

  13. Mohit Singal

    Oct 26, 2013 at 08:05

    Sir, the article is very thought provoking.Firstly,it highlights how people who want to make it big in life can do so not just by starting something but actually by investing in start ups. Secondly, since it is difficult to spot the potential of start ups , it brings into light the importance of investing smaller amount of capital in businesses of different kinds or from multiple industries .Thirdly, it explains growth potential of small companies. Since most radical innovations come from small companies while large companies mostly provide incremental innovations, smaller companies are more likely to develop products and services that progresses human lives by solving some real life problems and fulfilling customers latent demands and hence more likely to experience supernormal growth or get acquired by a large company. And finally , since starting something new requires lots of painstaking work , time and effort , learning to understand businesses better and becoming able to spot and invest in start ups with stupendous growth potential will actually help us achieve greater things in life at much smaller time frame by enabling us to think more strategically and work less clerically… Thank u so much sir , for such a wonderful article !

  14. Lal Bahadur Singh Rajput

    Nov 19, 2013 at 22:47

    Very well written Sir…provides a lot of insights on value investing rather
    than growth investing. Identification of core competencies of an individual or
    a company would greatly drive investment decision…

  15. Arvin

    Nov 20, 2013 at 15:39

    Sir, your thoughts of finding a small enterprise which has a greater growth potential and investing in it for higher returns instead of investing in a bigger enterprise who has already reached its peak so gains might not be good enough is a great insight indeed. Thinking in such a different manner is really a learning for us..

  16. Riyas

    Nov 20, 2013 at 16:26

    Having customers excited about your offerings through a start up is the result of
    innovative thinking and hard working nature which motivates him to perform
    better, Even then it is difficult for many to get financial aid at this point
    in time, Without resolving this issue no business can grow. Whereas this
    article has given a road map to move ahead and provided me many more
    diversified ways of thinking about business opportunities around.

  17. Lal Bahadur Singh Rajput

    Nov 20, 2013 at 18:39

    Very well written Sir…provides a lot of insights on value investing rather
    than growth investing. Identification of core competencies of an individual or
    a company would greatly drive investment decision…

  18. Upasana D Chugani

    Nov 30, 2013 at 19:14

    Beautifully written!!

    For success it is really important for an individual to be an active manager rather than an passive one. He should be open to every visible and hidden opportunity have an holistic approach to Explore and Expand his business methodologically and achieve success.

  19. Sanjay Chugani

    Dec 2, 2013 at 14:51

    A very well written and thought provoking article, there is
    no investment strategy – be it active, passive, value, growth, long-short,
    arbitrage, mean reversion, trend-following, stock picking etc – that will always
    work in all environments.

    But in this competitive and fears environment the ideas
    suggested in this article might be the key blueprints one must follow to make
    the right choices.

  20. Rohit Jaju

    Dec 5, 2013 at 17:21

    Hi sir, article is wonderfully written and I totally agree with you on value investing and diversification of portfolio.

    Stock investing is very risky as we see the volatility and break down off good companies stock. One of the most important issue in stock investing is investments of retail investors are totally based on recommendations by friends, family members, research report and some tips given in news channel or newspaper this can be taken into account but investors should do some basic analysis before investing in stocks or any security. Investor must choose those stocks which are underpriced in market and has good fundamentals. Every investor is not financially savvy to do all kind of analysis it need lot of effort, knowledge and skills which a common man may not have so, before investing investor must see companies debt, EPS, Dividend paid, Sales growth, future prospect and its brand.

  21. Pramit

    Dec 6, 2013 at 06:38

    Beautifully constructed pieces of information that inspires you…

  22. Sunil Bhougal

    Dec 13, 2013 at 13:00

    This article is an eye-opener for all employees to truly grow their wealth exponentially. Also, they would be contributing to nation building by encouraging entrepreneurship and hence providing employment at a large scale.

  23. Jagan Gaur

    Jan 11, 2014 at 19:19

    Nice article sir…crisp and effective….thanks for inspiring again….:)

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Investing

The Comprehensive Beginner’s Guide To Investing (And Growing Your Personal Wealth)

Are you a first time investor? You may want to get some guidance before you know your way around the investment world. We’ve got you covered! Read on to learn more about the best types of investment options, strategies to grow wealth and the dangers and pitfalls to avoid in investing.

Diana Albertyn

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personal-wealth-and-investment-advice

Why should I invest?

Keeping your life savings in your back pocket or under a mattress isn’t going to bring you the wealth you desire. “There are only two ways to make money in our modern world: By working, for yourself or someone else, and/or by having your assets work for you,” says trader, advisor, and author Alan Farley.

Investing means your money is working for you and gives you the opportunity to grow what you save or receive through inheritance. As an investor, you’ll generate money through interest on what you set aside or by purchasing assets that compound in value.

When is the best time to invest?

Start today. When it comes to investing, the magic of compounding is best achieved when you realise that time is of the essence. “Compounding makes your money work for you by earning returns today on the returns you earned yesterday,” explains Thandi Ngwane, Head of Strategic Markets at Allan Gray.

“If you start early and save consistently over long periods, less of your total amount saved will be from your contributions and more from growth.”

The earlier you begin contributing to your wealth, the more significant these deposits will be later, as your money has much longer to grow. You’ll also be able to contribute less as retirement age approaches.

But what happens if you didn’t save and invest right from when you received your first salary in your teens or twenties?

What can I do if I am only starting to invest in my 30s?

More than half of us only start saving at age 28, instead of when we start working, according to Discovery Invest. And many more adults only consider investing in their 30s, with a large number starting only when they hit 40.

Catching up on the compounded returns you could’ve accrued over the last five, 10 or 15 years becomes much more difficult with the added expenses of a typical 30-something-year-old. Major life events such as buying a home, getting married, having children and starting to save for their education can be expensive when you’re also investing in your future.

So, how do you overcome these major life events while still investing for the future? According America’s Millennial Money Expert, Robert Farrington: “The goal is financial balance. You can do both – save for the present and save for the future. But it requires a little more thought and effort.”

  • Determine your investment choices based on your personal goals and risk tolerance
  • The best way to build wealth in your thirties is still through saving, so select a portfolio allocation that matches your risk appetite
  • Maintain a diversified portfolio of low cost ETFs.

What can I do if I am only starting to invest in my 40s?

If you’re 40 and over, your main financial focus should getting out of any debt you may still have. “Becoming debt-free and then you should focus on taking your savings to the next level,” says Schalk Louw, portfolio manager at PSG Wealth.

He advises you put any additional income – salary increases and bonuses – towards higher pension fund contributions, savings or paying off your debt. “While my preference for long-term savings will always be a share portfolio, those who find its risks too high, can always consider a savings account,” says Louw.

Related: How To Make Money Investing, According To Ashton Kutcher

What should you start investing in?

business-investment

So, now that you’ve established that you’re ready to invest, you should be considering your options. First, let’s look at the basic investments to start with:

1. Investment accounts

If you’re looking to save towards long-term financial goals, this is the type of account you should consider opening.

This investment can be used, for example, to supplement your pension or other income upon retirement, an investment account is an ideal way to maintain a good standard of living. An investment account is designed to set aside assets like stocks and bonds as income during retirement, to save money for your child’s education, or to put down a deposit for your first home.

2. Equities

Buying shares or equities gives you ownership of a certain percentage of a company. As a shareholder, you’re paid dividends – a portion of the companies’ profits. Shares are a risky, but beneficial form of investment. On the one hand, a decline in share price reduces the value of your investment, while the benefit of dividends is that they attract less tax compared to the other sources of investment returns.

Shares may take a significant amount of time before yielding dividends, but for long-term success, when your dividends pay out, they can be used either as income or as a reinvestment into your share portfolio.

“The combination of dividends and the growth in capital market value of your shares over time is the total return for your investment,” according to Discovery Invest. “It therefore gives you the best chance of beating inflation.”

Some of the pitfalls of equity investment, says Craig Hutchison, CEO Engel & Völkers Southern Africa, include:

  • Share prices for a company can fall dramatically
  • If the company goes broke, you are the last in line to be paid, so you may not get your money back
  • The value of your shares will go up and down from month-to-month and the dividend may vary.

Reduce your risk by investing in various sectors and shares.

3. Unit trusts

If you’re seeking an investment that provides you with easy and affordable access to financial markets, unit trusts are an option. Not only is this a smart way to save, while beating inflation, but a unit trust offers you exposure to a range of assets, explains Hutchison.

“Your money is combined with the money of other investors who have similar investment goals,” explains Ngwane. “Our investment managers use the pool of money to buy underlying investments to build a portfolio that is then split into equal portions called ‘units’. Units are allocated to you according to the amount of money you invest and the price of the units on the day you buy them.”

Hutchison notes the following disadvantages you should be aware of before investing in unit trusts:

  • There are costs over and above those you’d pay if you were investing directly
  • Unit trusts may not be as liquid as some other investments
  • Reliance on managers to select the best appropriate funds.

Related: Now Almost Anyone Can Invest In A Hedge Fund

How can you continue to grow your portfolio?

portfolio-growth

More complicated investment options

Investing in the JSE

When buying shares, there are three crucial considerations to be made: Which company’s shares  to buy, the number of shares you want and how much you’re willing to pay for them.

The next step is an online, in-person, or telephonic discussion with your broker who’ll then forward your request to the JSE. Thereafter, your bid joins other requests to buy or sell shares on a central order book.

Finally, should the price you’re offering match with a seller at the same price, the JSE will ensure the transaction takes place, making you the new owner of the shares you requested.

Be aware of the risks

You could lose everything if you invest in one share and that company goes bankrupt. “You can diversify by buying into many different shares. An easy way to do this is to invest in something like an exchange-traded fund (ETF),” suggest experts from the JSE. “An ETF is essentially a basket of shares. You buy the basket and get anywhere from 10 to 600 different shares in that basket, reducing the amount you would lose if one company were to go bankrupt.”

Online share trading

As a potential first-time online investor, you may begin your journey by surfing a number of online share trading websites either those offered by all the major banks, or other providers.

“The biggest investment you make at this stage is in time,” says Brett Duncan, head of Standard Bank Online Share Trading. “You need to spend at least seven hours a week educating yourself – either studying newspapers or financial magazines, or tracking your portfolio.”

Be aware of the risks

According to PSG Online, no one should trade shares unless they have instituted risk control measures such as putting ‘stop loss’ controls in place. Share trading requires a high appetite for risk, time to watch the markets and an expert knowledge of the markets and trading process.

Darren Cohen, head of marketing at PSG Wealth, explains: “Making an informed financial decision is key to mitigating risk where one has considered the options that would best suit their personal needs. It‘s for this reason that client education is imperative to PSG Online’s mission of creating wealth for our clients.”

Offshore investing

This type of investment affords you two options, says Maarten Ackerman, chief economist and advisory partner at Citadel: You can either take money out of the country by converting it into hard currency and investing it overseas, or you can choose a rand-denominated investment via a South African unit trust.

Should you select the second option, your money is consigned in a rand-denominated asset-swap fund, and the unit trust uses that money to invest offshore. When the money is eventually repatriated, it will be paid out in rands.

“Politically risk-averse investors will prefer to make use of direct offshore investing, as with this option the investor never has to repatriate or convert their investment back to rands,” says Magnus de Wet, director of Vista Wealth Management. “With a weakening rand, direct offshore investing would be the preferred investment approach.”

Be aware of the risks

Investing in any type of commodity involves potential loss. Two of the measures you can take to reduce risk are:

  • Investing in low risk commodities, for example, a fixed deposit with an offshore bank
  • Diversifying your offshore investment portfolio adequately to balance out high risk offshore investments with more conservative, secure investments?

As a newbie to investing you be risk averse, so high-performance offshore investments, although brimming with the promise of very high returns, are not recommended until you know your way around turnovers and returns.

Related: Becoming A Self-Made Millionaire: 5 Things To Do To Become Wealthy

How to make money investing

business-investment-cash

Contrary to popular belief, you don’t need (a lot of) money to make money. Wealth isn’t a prerequisite for investing. You can take advantage of investing over time, if you start sooner rather than later. While this means you’ll have to wait a little longer before quitting your job in favour of early retirement and living off your dividends, the long-term rewards are lucrative.

Remember these crucial pieces of advice before making your investment decisions:

  • Diversify your portfolio, so you never have all of your money invested in one account, venture or business. The best way you can manage risk is by not putting all your eggs in one basket
  • “Be careful who you trust with your money, make sure you invest your money with a reliable and established company with a solid history and reputation, do your research and do not be afraid to ask questions,” advises Craig Hutchison, CEO Engel & Völkers Southern Africa
  • You can achieve a great deal by simply investing or saving portion of your salary every month
  • Know the difference between investing and saving. “Saving is storing your money, while investing is growing your money,” he says. “One of the significant differences between the wealthy and not-so-wealthy is that wealthy individuals earn interest while everyone else pays interest.”
  • “The way that the prosperous continue to build their wealth isn’t really a secret – they spend less than they earn, save the difference, and let the potential of compound interest make their riches grow,” says Hutchison.

“Financial wellbeing is a long-term commitment, but with the right guidance, discipline and savvy decision-making, you may achieve your goal sooner than you think. It is never too late to start investing in your financial well-being,” he concludes.

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Company Posts

Investing In Wealth-Generating Assets

With returns of between 10% and 16%*, impact investing offers more than just the chance to do good.

Fedgroup

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Through a combination of innovation and technology, investors are finally in a position to own a stake in lucrative farming operations without high cost barriers, while at the same time having a positive impact on the environment.

Global trends, local applicability

There has been a recent trend towards socially conscious investing, known as impact investing, which has gained significant traction in first-world markets. Younger investors in particular want their money to do good in the world, but still expect a good return on their investment.

This trend, combined with the desire of many entrepreneurs to own a viable side-hustle, provided the impetus behind the creation of Impact Farming by Fedgroup.

Impact Farming differs from conventional impact investments in a number of ways. Other impact investment products usually consist of portfolios that offer access to shares in companies that meet certain social and environmental criteria. South Africa’s leading independent financial services provider, Fedgroup, in contrast, believes that investing directly in ventures is a smarter alternative.

Related: Balancing Business And Investment Risks

The perfect side-hustle

bee-farming

That’s because investing in shares and funds can be unnecessarily complex and often diminishes returns through hidden costs. In addition, barriers to entry can be prohibitive. Fedgroup has therefore leveraged the ubiquitous nature of mobile to deliver a fast, lucrative way for investors to directly own assets in high-yield farming ventures. It’s the perfect side-hustle, without the hassle.

Fedgroup’s Impact Farming investment platform offers investors access to a growing network of local crowd-funded farming ventures that generate solid profits to deliver competitive returns. From as little as R300, investors can own assets across three different ventures, blueberry, sustainable honey and urban solar farms.

Investors buy assets at one of Fedgroup’s approved sites, forming a venture network that is managed by farming experts.

Tax benefits and passive incomes

Investors get paid in regular cycles for the yields their assets produce once they are harvested and sold to Fedgroup’s contracted customers. This money can then be enjoyed as passive income or reinvested to benefit from compounded growth. Impact Farming assets also qualify for a tax benefit associated with renewable energy and sustainable farming.

Not only does this model significantly lower the barriers to entry inherent in traditional fund investing, but it also allows socially conscious investors to make a big impact with their money, regardless of the amount invested.

And there’s also less risk compared to various traditional investments thanks to the innovative approach. Extensive due diligence is performed on every product line to ensure its viability before it is brought to market. The company then carefully vets and selects Impact Farming ventures for both the financial impact they have on investor wealth creation, and the positive impact they have on the world.

Related: More Than Sun In Your Eyes: Fedgroup’s Impact Farming Solar Offering

Considering risk

Fedgroup also built market-tested financial models that were deliberately designed to be conservative when forecasting returns. However, as the profits from investor assets are pooled, so too are the yields, which mitigates the risk of individual assets underperforming. And with service level agreements in place with providers, Fedgroup ensures that assets continue to perform in line with projections, unlike the unpredictable nature of company shares.

The assets are also insured, the cost of which is included in the purchase price. Therefore, if an investor’s asset is ever destroyed in a natural disaster, Fedgroup replaces it. This asset class also runs counter to market cycles and therefore offers diversification that is virtually unmatched.

Fedgroup’s Impact Farming platform offers a unique wealth creation tool for a new breed of investor.

* The projected returns of between 10% and 16% per year are the asset owner’s internal rate of return (IRR). This is the rate of return after the initial purchase price has been subtracted, and which also takes into account the time value of money. For instance, a R4 000 beehive is projected to produce a total income in excess of R9 000 over its 10-year term, which represents an average return of 23% per year. If the IRR calculation is applied, it provides the projected IRR of 15% p.a.

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Investing

What Is Genuine Wealth?

Genuine wealth accounts for what we value most and allows us to objectively assess our real assets (our strengths) and opportunities for developing our real wealth potential.

Dr John Demartini

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So often we toss certain common words around – like the words ‘genuine’ and ‘wealth’ – as if we fully understand what they mean. But, do we actually and fully understand the original, deeper meaning of these significant words? Maybe it would be wise and worthy to explore for just a moment what the two words ‘genuine’ and ‘wealth’ might have originally meant or at least could mean to us today. The word ‘genuine’ comes from the Latin word ‘genuinus’ which means ‘innate’ (true, actual or sincere). And the word ‘wealth’ comes from the Old English words ‘weal’ (well-being or whole-being) and ‘th’ (condition), which taken together means ‘the condition of well-being or wholeness’.

Of course, when the two terms are combined, ‘genuine wealth’ could now be perceived as relative, and as having widely different applications. Originally, genuine wealth signified real or sincere well-being and was applied to eternal spiritual as well as temporal material welfare. Later wealth was used in the sense of large material possessions, or of what seemed large to those who had little. It has been stated, ‘without ambition, without aspirations, life is not worth living’. The noblest of all ambitions is liberation or freedom from physical or social bondage, slavery and constraint and this independence demands genuine wealth or the empowerment of all areas and aspects of our lives.

Genuine wealth is a vital force, one of the greatest of forces for the enfoldment of culture and the birthing of liberty. Genuine wealth dominates everywhere, exercising its forceful influence on both spirit (the liberated or inspired mind) and physical resources, or matter. In the genuine wealth of the world is the accumulated power of civilisation. Genuine wealth is the measure of human progress and possibility. Where there are no storehouses of genuine wealth, there can be no storehouses of fulfillment, nor inspired beings or great knowledge. And where there is no learning, there can be no individual or social progress. The existence of culture, whether it is part of a nation, or now a global society, begins with the creation of genuine wealth, i.e. individual and even cultural wholeness.

Genuine wealth represents the people, places, things, ideas, actions and events that make life worthwhile or valuable. It is the experience of a life worth living and one that is aligned with our true, highest and most meaningful values and/or principles; not only as individuals, but also collectively as families, communities, cities, states, nations and someday worlds. It is the actual condition of our collective well-being (spiritually, mentally, vocationally, financially, socially and physically) that make up true and genuine wealth.

Related: 8 Rules To Build Wealth When You Weren’t Born Into Money

Genuine wealth is measured and assessed by the conditions of all things that make life collectively valuable and meaningful and it implies total or whole life wealth. Many people are accustomed to looking at wealth strictly in financial terms or earthly property and physical possessions and yes, this too is also essential for individual and social development and progress, but genuine wealth is much more than that and we know it intuitively. It can include inspiring ideas or causes, intellectual properties, business ventures and assets, financial investments, family relations and possessions, social influences and causes and physical talents or even beauty.

Conventional economics and business indicators of prosperity like GDP (gross domestic product), stock market indices and other economic indicators are important and certainly contribute to one facet of wealth, but they all make up only a part of what could be properly defined as genuine wealth.

Genuine wealth involves real value, which represents the diversity of words that make our lives admirable and merited and truly worth living. Where we spend our money discloses our true values and what we hold to be important. Genuine wealth represents all the things that make our lives meaningful, that resonate with our truest nature and more holistic being centred within our hearts. Genuine wealth is an accounting of life; like a window onto our souls, or a mirror image of our genuine selves. Genuine wealth emerges when we are being in touch with our highest core values, our complete life assets and our full awareness and potential. Genuine wealth includes all assets that contribute to our complete and balanced state of living and being. Genuine wealth accounts for what we value most and allows us to objectively assess our real assets (our strengths) and opportunities for developing our real wealth potential.         

For more information on Dr John Demartini visit www.drdemartini.com

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