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Wealth equation from the book


Wealth equation W(wealth) = P (Number of people ) x I (Influence per person) This is chapter from the book Become Remarkable now -concepts about life,happiness and wealth

Chapter 9

Wealth equation (Wealth concept) Wealth equation W = P x I Where W = wealth P = people (Number of people) I = Impact (per person) Lets look at the equation W = P x I Wealth includes all kinds of wealth or any other tangible or intangible thing can be put into the equation for our purpose we will put financial values in this equation.

Wealth in common financial sense is the money accumulated by a person. Now we go even further in example of Bill Gates and Steve Jobs, Imagine both had got the products the windows and the iphone ready but not have sold the product to general public Their companies would not accumulate any wealth. We know that it is not just the creation of product or service but also the utilization of these by people which creates value. That it is not just creation of product or service but also the utilization of service is also very important. How exactly the value is created and the wealth equation works We will understand this with a very simple example. We again use our imagination and walk into a sandwich shop and we name the person as Larry. Now Larry owns a sandwich shop and makes sandwiches for the customers who walk up and get their sandwiches ready according to their order. Every hour Larry is able to attend about 20 customers and get their sandwiches prepared and charges $ 5.00 for a sandwich and we count a profit of $ 1.00 per sandwich (Larry earns 20 % profit on sales) Larry earns at the most $ 1.00 per sandwich.(20% of $ 5.00 is $ 1.00) We know Larry makes 20 sandwiches per hour at the most and shop can earn $ 20/hour from his efforts and Larry cannot obviously earn more than $ 20/hour so in an eight hour period Larry can earn at the most $160/day (8 hours) Now we can calculate the number for every individual working in business or in a job some might be easy like the above example and some calculations might not be as simple but we will discuss in blogs about any calculation and all can be done with use of some skills and imagination. But for our understanding of this formula of wealth equation we will take above example for easy clarification. How can Larry increase his income in the above example? Let’s try answering using formula. W = P x I Where income W will depend on number of people Larry can attend and I would be the per person impact or here the purchase In the same example of Larry we saw earlier. We assume here that Larry is making same 20% profit Assume Larry can attend 25 customers per hour instead of 20 per hour and each customer purchase $ 7.00 worth services (Adding soda or chips or cookies or whatever Larry sells)

Now Larry attends 25 customers his (P) goes up and his impact per customer (I) goes up so his income will go up now Larr