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The Basic Equation

It’s the job of marketers and product makers to take the most basic of equations and turn it into something worth billions of dollars. Two products where this is most prevalent are wealth building and weight loss. In reality, these equations couldn’t be more simple:

X – Y = Z

In weight loss, this equation is:

Calories In – Calories Out = Calorie Gain

The wealth building equation is:

Income – Spending = Saving

You might think this is an over-simplification, but starting out simple is what makes goals achievable.  A great start at losing weight is to burn more calories than you consumer. If you want to build wealth, spend less money than you earn.

If you take weight loss in it’s simplest form, this requires little effort and little cost. You can swing this rational in your favor for zero cost. You can stop eating too much. You can add a couple miles of walking to your day. You can do both for accelerated results. People who try to sell solutions to this problem begin to complicate the process. It is in their interest for weight loss to feel complicated and insurmountable. Give us money and we’ll solve it for you. 

Wealth building is the same. If you spend less than you make, you can build your wealth. You do this by controlling your spending or find ways to make more money. The wealthy rarely have one source of income. Trying to beat the stock market or jump in on the latest IPO is a fools game. The pros don’t even do it well. Keep it simple and look to the long term. Getting rich quick takes time. 

By the way, this is the way I want to live, not necessarily the way I live. This post is to remind me that it can be simple. 

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