Your Net Worth = Your Network
Have you heard the old saying "It’s not what you know, it’s who you know?" That was certainly true in the Industrial Age, but in the information age, the saying needs some tweaking.
Now, the new mantra is: "WHAT you know determines who you CAN know." And who you can know makes a difference.
A Great Transfer of Wealth
Many people today are hurting because of the new economy. It’s true that much of it was caused by greed and excess on Wall Street and in Washington, but there are also external forces, such as the rising use of the internet, that are transferring wealth away from one group of people and into the hands of the other.
On one side, you have those who believe in working hard, saving their money, and investing in a well diversified portfolio of mutual funds, bonds, and other paper assets. On the other side, are the business owners and investors who are erecting virtual real estate that is dwarfing the value of even tangible real estate.
How to Cope
I would consider investing time and money in building your network. Screen who you spend your time with carefully: are they moving forwards, or slipping backwards? Are they growing, or decaying? Adapting, or dying?
I know it may sound a bit harsh, but it’s true that there are those who are adapting or growing, and those who are decaying or dying. It’s the power of the mind now that will win out financially. In the Industrial Age, it was your labor that was valued. In the Information Age, it’s all about the power of your intellect, and your ability to make money work hard for you, rather than you trading time for money.
Assets & Liabilities
We all have a Balance Sheet. We have Assets and Liabilities: an asset being something that makes us money whether we work or not, and a liability being something that costs us money whether we work or not.
While this is a great definition for looking at our financial health in numbers, there is a variable that does not appear on your Balance Sheet. The intangible that is fast becoming your greatest asset: your network .
Your Net Worth = Your Network
Seek people who are leaders in their respective fields; those who are on the forefront of innovation and progress; the thought leaders and the doers. By being around the right people, you will think, talk, and act differently than the masses. And that, my friends, is the key to financial security and financial freedom .
Action Steps to take NOW:
1. Read posts at www.NetworkingEffectively.com to improve your communication skills.
- Learn how to Network from a professional. See what he recommends you do and say when meeting people. These skills are invaluable.
2. Attend a local Chamber of Commerce meeting.
- Meet with local business owners and find out what they are experiencing as problems and what trends they see. Listen more than talk: you have two ears and one mouth for a reason. You can pick up changes you should be aware of, or a business opportunity.
3. Join groups online in social forums.
- Make yourself known as someone who is willing to learn about what’s going on in the world today. Ask tough questions and seek areas of interest to you that you believe will be of importance to you now and in the future. Again, look for trends.
4. Increase your knowledge of the internet and its affects on business.
- Read publications like Forbes , Businessweek , Fortune , and The Wall Street Journal . Read top blogs related to different subject matters.
5. Attend conferences and seminars.
- These events are where the best and brightest come together. Share in their experience, wisdom, and insight. Take advice from those who have been there/done that, or are currently doing it. You’ll learn priceless information, and information is key in the new economy.
6. Meet with local leaders.
- Take people to lunch in your area that are business or social leaders. Talk with Economic Development or other local officials. Find out what plans are being made for your area in regards to business and economic development, and see how you can take part in improving the future.
Please leave comments about your experiences!
Quit Worrying About You: Serve More People
The way to wealth is to serve more people.
This can be done slowly or scaled by leveraging others time and talent.
Why is this so important to realize? Because many of us are selfish.
I’ll admit, I’ve been selfish myself. It’s part of human nature to want to survive and worry about ourselves, until we reach a point where we are not worried about the basic needs. See: Maslow’s Hierarchy of Needs
Once we have what we need, we can begin to work outside of ourselves and focus more on giving to others. This in turn leads to great life satisfaction and increased earnings over time.
Make sure that whatever you do in life is fulfilling so as not to have a hard heart or a weary soul. Your health is greatly affected by what you do and those you surround yourself with. There was an interesting article written about the health affects of different levels of affluence called Be As Healthy As the Wealthy . I think this article points to a significant issue that plagues many people: their chosen vocation doesn’t give them the overall life satisfaction that they need in order to remain healthy.
Health is about way more than money: it’s about having a sound mind, body, and spirit. The foundation for being able to develop these areas of your life is best laid when you aren’t so worried about money. This should be good motivation to find what it is you like, find a way to serve more people, and reap the financial rewards for doing so.
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