Twenty First Century Economics

There is a tendency to keep on doing the same things we have always done even when we don’t like the results. Albert Einstein said “the significant problems we face today cannot be solved by the same of level of thinking that created them.” In order for us to solve Twenty First Century financial challenges, we must adopt new financial strategies in our thinking and actions.

Look at what is currently going on in the economies around us; cities in America have been declaring bankruptcy; the US government is trillions of dollars in debt and unable to keep a balanced budget; countries like Iceland, China and Japan have had their share of financial challenges; the world markets have been shaken; banking has hopefully changed forever due to the greed of a few, and so on and so on.

There are more billionaires on the planet than ever before. The richest man in the world at this time, Bill Gates, has over $70 billion dollars in net worth. This is a ridiculous amount of money being controlled by one man. It’s common for people to see their wealth increase by $100’s of millions of dollars in one year if they are currently rich. Clearly this is the time for wealth creation.

I believe there are some components to 21st century economics we need to keep in mind as we focus on making our lives more prosperous in the upcoming years;

1) Cash is King – the more liquid cash you can get your hands on, the better you will do financially. With cash you can negotiate the best deals to be found and purchase things way below market value. Smart investors accumulate cash.

2) Invest in growing markets – although there are some investments that haven’t yet recovered it is still possible to make money by investing in growing markets. The stock market has been recovering nicely and reaching highs that are all time records. Certain stocks have demonstrated unprecedented growth and making some of their investors very rich. In order to stay competitive, one must invest.

3) Change your mind – look at the world differently. We are in a global market and the world is more connected than it has ever been. It is time to look at things you may have never looked at before with a new set of glasses. See the endless possibilities that exist and go for it with all you have at your disposal.

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