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This is a series of articles about studying general scientific ideas to
create a wealth building system that works according to the laws of the
Universe. These concepts come from observing our environment.
Scientists have discovered that the laws of nature follow certain
patterns. Some physical laws seem to be present everywhere, from the
tiny atoms to the enormous stars.
Everything on the physical realm tend to be influenced by these laws,
therefore they can be applied to your businesses too as you will see in
just a few minutes. The whole series contain the following articles . .
.
1. Entropy
2. Life
3. Multiplication
4. Synergism
5. Inertia
6. Gravity
7. Diversification
Multiplication is everywhere in nature. Living things tend to expand,
grow and multiply. On this article I will show how important this fact
is for your business. You will be able to apply this concept to your
wealth building techniques.
Did you ever wonder how we humans go from being a tiny microscopic cell
to becoming such relatively big organisms? There are trillions of cells
in the average adult human body. We go from being 1 cell to being
complex organisms made of 1,000,000,000,000's of cells in about 20
years. That’s a huge amount as you can see.
We evolve into such big and complex beings because the human genome has
a special biological information that instruct the cells to split and
multiply. We like most animals grow really fast during the first years
of our life. The cells divide too fast. This period of our existence is
characterized by the fact that more cells are born than those which
die.
After certain age the metabolism slows down. We reach an age where the
process reverses and eventually more cells die than those which divide.
That’s one of the main reasons we get old. The other reason is DNA
mutations and cell damage caused by free radicals.
If the cells in our bodies could keep dividing at the same rate that
when we were kids and never stop until we would reach our forties or
fifties, we would be giant beings. This is what happens with tumor
cells. They become immortal and keep multiplying and multiplying and
never stop dividing.
This has to do with reproduction. Organisms not only reproduce when
they generate new individuals of their specie. When two cells divide
that’s also reproduction and we humans go through that process fairly
often. Biologically speaking the constant fight between life and death
depends on how many cells “reproduce” versus how many cells die within
our bodies.
If our bodies could keep a constant balance between cellular senescence
(the aging process of cells which culminates in the cells dying) and
cellular mitosis (the process through which cells divide), then we
would be able to live many, many years. The other thing to watch out
for would be diseases and accidents, but even without any disease nor
accident, we are genetically programed to live certain amount of time.
The same happens with most other multicellular organisms. New specimens
replace old ones and keep the specie alive. Without new specimens , the
specie would not be able to survive and it would become extinct.
All of these tells us something very important that we can apply to the
business world. First we can see how anything that grows exponentially
explodes. Even if you start with a very tiny microscopic particle, if
you can increase it in size exponentially you will have a huge body
within a short period of time.
This leads up to the concept of compound interest. I share a lot of
information about this subject on other articles. Think about it, you
only need to double $1,000 ten times to get one million dollars. That’s
for you to understand how important and profitable compound interest is.
For example, let’s say that you discover a method to double your money
every month. This means that you get 100% profit on your investment
every thirty days plus your principal back. What happens then? As I
explain above you will be a millionaire within 10 months.
Let’s do the math. You start with $1,000, then . . .
1. $2,000
2. $4,000
3. $8,000
4. $16,000
5. $32,000
6. $64,000
7. $128,000
8. $256,000
9. $512,000
10. $1,024,000
Etc, you get the point.
Most people try to do this through financial market trading as well as
other investments. Trading is risky though. When you compound your
profits you could lose it all. On the other hand, time is the best
friend of a smart investor. The earlier you begin investing the less
capital you need to start with.
There are many methods to compound your profits. Some of them are
riskier than others. For example, some people buy land. When the land
appreciates in value, they sell it and reinvest the profits (they buy
more land). They keep doing this for several years and their overall
wealth grows big.
Here, I will apply this concept to something else also. What if you can
compound your multiple streams of passive income. This may not be as
risky as trading your capital or compounding all of your profits.
Compounding all your profits may turn you into a very wealthy person,
while increasing your streams of passive income exponentially can make
your financially free. It is as the saying goes “No risk, no reward”.
Often the higher the reward, the higher the risk too.
How do you do this. Well, you set up a stream of passive income first.
Once it starts generating substantial profits for you, then you use
part of those profits to fund a new project. After you have two sources
of income generating revenues, you can proceed and set up a third one.
You keep doing this for a while until you feel comfortable with the
streams of income you have and the amount of money they generate for
you. The good thing about passive income is that you don’t need to be
actively working to make money. These streams of passive income produce
money for you even if you are working on something else or having fun.
You only need to give them some maintenance which may take you a few
hours per week.
As you can see, these are basic examples of how you can apply
scientific laws to your businesses and become more profitable. On this
article I shared information with you about multiplication. You can
learn about other physical laws and their applications to wealth
building techniques from my other articles. |