Latest news with #Metcalfe'sLaw
Time of India
3 days ago
- Business
- Time of India
Robert Kiyosaki claims the poor stay poor for ignoring 2 crucial money laws — here's what he says you must follow
Robert Kiyosaki, author of the best-selling personal finance book ' Rich Dad Poor Dad ', has spent decades exploring what separates the rich from the poor, and now in a recent post on social media platfom X (formerly Twitter), Kiyosaki revealed that people remain poor because they ignore two fundamental 'laws of money,' as per a GoBankingRates report. As he explained, here are the two laws of money that one shouldn't break if they want to be rich, according to the report. Bad Money Drives Out Good Money Gresham's Law is the first important law, an economic theory which says, 'bad money drives out good money,' as per GoBankingRates. Kiyosaki has explained it as 'When bad money enters a system….good money goes into hiding,' as quoted in the report. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like The Top 25 Most Beautiful Women In The World Articles Vally ALSO READ: Juneteenth 2025 is near: What this historic holiday means and how U.S is honoring the end of slavery With reference to the currency markets, the law means that legally overvalued currency will drive legally undervalued currency out of circulation and according to Kiyosaki's interpretation, people should focus more on obtaining assets like precious metals and cryptocurrency instead of stockpiling cash, reported GoBankingRates. Live Events Kiyosaki wrote in his X post that, 'In 'Rich Dad Poor Dad' I stated, 'Savers are losers', in 2025, poor people are working for and saving fake money and not saving real money … gold, silver, bitcoin,' as quoted in the report. The Power of Networks The second law Kiyosaki cites is Metcalfe's Law, which says, 'the value of a network grows as the square of the number of its users,' quoted GoBankingRates. Kiyosaki explained by giving this example on X, 'McDonald's is a franchise network. Mom Pop burgers is not. That's why they're poor. FedEx is a network. Joe's one truck package delivery is not,' as quoted in the report. He applies the same logic while investing in cryptocurrencies, as, according to him, the cryptocurrencies that have a larger network behind them are also the most valuable, reported GoBankingRates. The author said, 'I invest in bitcoin because [it] is a network,' adding, 'Most cryptos are not,' as quoted in the report. Why These Laws Are Important To Get Rich Kiyosaki says these two laws guide how he manages his own money. He wrote on X, 'If you want to be rich, obey the laws,' adding, 'Michael Saylor's rich man's words of wisdom are: 'Only invest in things … a rich person will buy from you.' Think about that," as quoted by GoBankingRates. He also revealed that 'I do not save U.S. dollars because the U.S. dollar violates Gresham's Law,' as quoted in the report. Kiyosaki pointed out that, 'I do not invest in … coins without networks, because they violate [Metcalfe's] Law. That's why I save gold, silver and acquire bitcoin. They obey the laws,' quoted GoBankingRates. FAQs Why does Kiyosaki invest in bitcoin over other cryptos? Because Bitcoin has a large, established network behind it, and most other cryptocurrencies don't follow Metcalfe's Law. What's the biggest money mistake people make, according to Kiyosaki? Ignoring the two laws of money, which is not understanding Gresham's Law and Metcalfe's Law.
Scotsman
19-05-2025
- Business
- Scotsman
Focus on four key areas to ease SME growing pains
Nathan Davis says small companies face challenges when deciding to increase their headcount – but they can be overcome Sign up to our Scotsman Money newsletter, covering all you need to know to help manage your money. Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... The government's ambition of economic growth can only be delivered through successful businesses expanding their market and ultimately increasing the numbers they employ. But this latter point is one that can also create significant challenges for many smaller companies, which often struggle when they extend beyond a headcount of around 20 employees. Small companies employing fewer than 20 people will typically develop informal communication structures with colleagues likely working across multiple levels of the business and often in close physical proximity to each other in the same office or, in many cases, the same room. Advertisement Hide Ad Advertisement Hide Ad The principle behind Metcalfe's Law on the influence of a telecommunications network dictates that, amongst a group of 20 people, there are already a possible 190 different communication points. When headcount extends to 25 people, the number of points increases to 300 and continues to rise exponentially as additional employees are added. Growing SMEs can come up against communication issues (Picture: For a growing SME this is likely to create communication challenges across a broad range of areas including clarity over its mission and how growth targets should be achieved. To help address these, many businesses will typically restructure and move their people from being part of one larger team into multiple, smaller functional teams. While this can be effective in reducing the total number of communication points, it also increases the risk of teams working in silos and moving in different directions from their colleagues. While increasing headcount is usually essential for growth-focused businesses, we know from our own experience of supporting aspiring SMEs that it also requires a new approach. Succes in moving beyond 20 colleagues usually demands a careful focus on four key areas: strategy, people, process, and technology. Advertisement Hide Ad Advertisement Hide Ad The starting point in addressing these growth pains is to focus on a clear strategy with objectives that are fully aligned with the purpose of the business. Risk-based and principle-led strategic planning and execution is key to ensuring there is clarity of purpose across an expanding team of people. Embracing this approach will help provide colleagues with a single direction that aligns business and team decisions with a clear overriding ambition. It also reduces the risk of newly emerging separate teams from inadvertently working against each other. Nathan Davis, Evolve Consulting Director at accountants CT As you would expect, growing the numbers employed within an SME also requires a strong focus on people. Aligning team and individual objectives with the overall business strategy is critical in giving a clear understanding to all employees on how they can contribute towards a positive impact and help deliver growth. Processes are a further important part of this mix. The multiple communication pathway options that exist within a small business combined with a new structure of smaller, separate teams creates an essential need for clearly defined processes. Setting these out with clear roles and responsibilities will help colleagues better understand how they should work together across the business. It also reduces the risk of teams working in isolation or making decisions that may positively impact them but could be detrimental to growth. Technology is the final area that can help overcome SME growing pains. The right technology can be a real enabler for collaboration between teams by ensuring processes are streamlined and allowing important data to be accessible to an expanding team. Advertisement Hide Ad Advertisement Hide Ad As well as enabling growing SMEs to make informed decisions within a rapidly changing business environment, investment in technology is also vital in helping SMEs manage a growing headcount as they aspire for growth.
