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To understand the math behind the creation of wealth we need to break this creation of wealth down into its component parts. For starters, lets start with some simple equations.
Time = Money
This equation may seem simple, but we need to understand what it actually represents. Time occurs when something exists and it is in motion. So time is the application of doing something that will generate money.
But time is finite, we only have 24 hours in a day and eventually time runs out.
Money is also a variable. Money is typically a variable linked to how much we can charge x the value it provides.
So T = 24 and M = $ x V
The beauty of this is that if we can increase the amount of time that we have then we can increase the amount of money that we can make. If we can increase either the value we produce or the currency we charge for it then we can also make more money.
If this was Manufacturing we would add more time by adding more employees. Why? Because they each have 24 hours as well that they can donate a portion of to increase production.
If we raise the cost $ (assuming enough value exists to justify it) we could make more money or if we increase the Value more people could justify spending $ thus also increasing the amount of money we could raise.
But lets make an assumption that our product is excellent and priced appropriately. If T = M in a Manufacturing environment then our profits would only be limited to the amount of time we could put into it. BUT since the Time of Other People also = M ( TOP = M ), we would need to pay our employees as well and our profits would be reduced.
But the creation of DIGITAL wealth is different. For digital wealth we can hit a button and without the need for Employees we can generate more product with no time increase. It’s a simple matter of copying a document, a file, or a program and distributing its value accordingly. This seems simple, correct?
But something is once again missing in the equation. In the manufacturing scenario we didn’t account for the time of the consumer because they were not the ones generating the product… we were. In a digital world the TOP (Time of Other People) would be generated by the CONSUMER as they entered their information in and create the product by hitting a button.
Thus Time (OP) is proportionate to their currency $ times the Value they purchase.
So the ideal way to create wealth is to have customers pay you currency $ based on the Value they derive from your original finite Time investment and their OWN near infinite (24 hours x every client requiring value) Time investment.
Why is this ideal? Because if your Time investment is finite then you can repeat this process with the rest of your time, thus deriving more revenue. Thus:
Your TIME x TIME(OP) = Money… which means the SUM of Time = Money for every product that they purchase.
In summary: The more time you have for yourself, the more value you can generate, which will result in a greater quantity of value that your clients will want to purchase at an appropriate fee. So TIME really can be proven to = Money.
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