Transformation as a source of money
One of my concerns with financial education has been to find a way to explain clearly and simply the mechanisms by which you can make money in the amount you want. I managed to do this by breaking down money-related concepts to the point where they remain simple ideas that can no longer be reduced: distilled down to their essence. So I came to the conclusion that you can make money using two methods, one of which is transformation.
The wellspring of abundance
One of the constants of the universe we live in is transformation. It is how matter, energy and information continuously evolve, through processes that lead to variation in the entropy of systems. It is the dance that brings change to the stage of reality into which we are born.
In the same way, transformation is one of the two sources of money that I have been able to identify. Here are its actors:
- Man – is the transformer.
- Matter, information, energy and man – are the subjects of transformation.
- Space – is the scene of transformation.
- Time – is the timetable of transformation.
- Material – is the tool used for transformation.
- Information – is the blueprint of transformation.
- Energy – is the engine and shaper of transformation.
To better understand the relationship between these elements, here is a graphic example of the transformation of matter.
The transformer is, as always, man:
- the subject of transformation is matter, in our case wheat, as raw material; it is worth a sum of money
- in order to act on the subject, we need a space where the transformation takes place (the physical space of the bakery)
- time is the time in which the transformation takes place: time is needed for mixing ingredients, dosing, baking
- the tool of transformation is the material, in the form of the machines with which we process the grain, so that it becomes bread
- the information is the plan that leads to the transformation, i.e. the recipe, the description of the technological transformation process
- energy is the engine of transformation: you need electricity for the bread mixer, heat energy for the bread oven, etc.
- the selling price of the bread exceeds the costs: the price of the raw material and the other elements necessary for the production process
Here’s how you can make money by converting energy:
- the subject of transformation is solar energy
- space is needed for the location of solar panels
- time is the time when the sun is in the sky
- matter is the tool that does the transformation (the solar panel)
- the energy is needed to produce and mount the solar panel
- information is needed to produce the solar panel
- in the end you get electricity, which can be sold, and after amortization of the production costs, you get free electricity
Here’s how you can make money by converting information:
- the transformer is the man
- the subject is the information, in the form of words or concepts
- the space in which the transformation takes place is the place where the writer works, the scientist who conceives a theory, etc.
- time is necessary to write the novel or to conceive the scientific theory
- matter is a tool: writing with a pen on paper, or on a computer
- energy is needed to move the pen on the paper or to operate the computer
- information is necessary for your education, as a human being, to be able to produce the transformation of information
- the finished product is the literary work or scientific work, which can be sold as a book in a bookshop or win you the Nobel Prize: a large sum of money.
This is how you can make money, by transforming the man, in the noble activity of educator or coach:
- the subject of transformation is man
- you need a space in which to do this: the classroom, for example
- everyone knows it takes time to train someone
- the material base is extremely important, it can range from a sand board and a sharp stick (the style) in the Roman period to tablets and laptops in modern educational institutions
- energy is an important factor, whether it is just to ensure the physical comfort of participants in the act of learning
- it is information that leads to human transformation in education
Human transformation can also be physical. A fitness trainer earns money by helping clients get into enviable physical shape in a shorter time.
Probably the most important transformation of man is his own personal development. It is the most effective way to make more money. An educated person who knows a trade makes more money than an illiterate person or a person who only knows how to use the strength of his body to move an object from one place to another.
