09.10.06
Deep Thought #8 – Money Proverb
What is behind the proverb, “It takes money to make money”?
(pulled from the web)
–
Does it take money to make money? Not always. I think the phrase should be “It takes money to make big money.”
When you are old enough you can go get a job and make money with little cost. Yes, there would be a little bit of money involved (gas (which means a car…), a uniform if applicable, etc), but thats not really the point. A person can make money with a very small investment on their part, but they wont be making huge sums. If that were possible, that whole market (no matter how secret) would be flooded and the big money would stop rolling.
However, how do all of these successful businesses start up? They require money. In fact, the giving of money to potential money making sources is itself a money making business (venture capital). A good example of needing money to make money can be seen in the web 1.0 and 2.0 companies that were actually successful. Amazon, Google, Yahoo, EBay, PayPal, Digg, and many others were small hits before they recieve serious money to flesh out their business. Now their creators are pretty much rolling on money.
Also, having money can make you money. Stocks, mutual funds, bonds, high yield saving accounts, and other types of investments might tie up your money, but (if you do it correctly) you will gain money out of it. Then, in turn, you can roll that money made and the money it was made with into more investments, and eventually gain rather significant sums of money… from your money.
There is truth behind the proverb, “It takes money to make money.” But if you have no money, don’t be discouraged. You don’t need much (if any) to start making money, just don’t expect to be pulling in the big bucks without serious effort.