Formula For Prosperity

by Patrick Liew on January 19, 2015

While watching an online seminar, one of the speaker’s slides caught my attention.

The Milken hypothesis formulated prosperity (P) as follows:

P= Ft ( HC+ + SC + RA),

It posits that “prosperity equals the effect of financial technologies (Ft) acting as multiplier on the total value of human capital (HC), social capital (SC), and the real assets (RA) – cash, receivables, land, buildings, etc. – typically found on balance sheets”.

The questions that beg to be answered are as follows:

Financial technologies (Ft)

You need to have optimal financial technologies to accelerate your financial wealth. They help you to achieve ever more wealth with ever less resources.

1. Do you have the requisite financial literacy knowledge and skills to be rich and wealthy?

2. Do you have the required system and other resources to be financially free?

Human capital (HC)

Wealth creation begins with re-creating yourself. The quality of your wealth depends on the quality of your life.

The larger your capacity for creating wealth, the larger the amount of wealth you will attract and multiply in your life.

3. Do you have the appropriate plan, information, expertise and very importantly, the lifestyle and actionable steps to achieve financial success?

4. Do you have the wealth-creation wisdom, discipline, grit, and resilience to press on until you reach your financial destination?

Social capital (SC)

In creating wealth, like they say, it’s not just about what you know but also who you know. Your net worth will tend towards the average net worth of your closest friends.

Therefore, increase your social capital to increase your financial capital.

5. Are you learning from and modeling after the top ranks of the rich and wealthy people?

6. Are you interacting with and building solid relationships with people who will drive you to improve your financial position and assets?

Real assets (RA)

I have to state once again that I’m not a believer that you must have money to make money. The easier and better way is to monetize non-financial items and seek to maximize your returns from them.

7. Do you know how to translate what you already have or can develop in your life to become great wealth?

They include your focus, personality, mindfulness, vision, beliefs, values, leadership, integrity, passion, discipline, spirituality, capacity and competence, ideas, team, market intelligence, courage, creativity, innovation, learning and improvement process, initiatives, system, technology, productivity, connections, persuasiveness, deal making and management skills etc.

8. How are you going to develop the knowledge, attitude, skills, and habits (KASH) to help you run farther and faster on the financial journey?



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