Your tool budgets and technology affect their wealth?

In the book The Next millionaires by Paul Pilzer, the idea is to present our financial success is not only based on the resources at our disposal, but also the tools that we use.

The next millionaires is a big book on the new economy that shape our present and future generations and that many challenges old economic principles. One of the great jewels of the interior is an equation that Paul discovered.

W = P * T

The rich resources of staff * = Technology

This theory suggests that our wealth (as a society) is determined not only by the resources available to us, but sometimes the technological resources available to us. It is a very interesting way of seeing things. The example given is that of oil or gas crisis in the years 1970 to the USA. It foresees a shortage of gas and so is rationed at the same time. Then, the average fuel consumption was about 9 miles per gallon of $ 300 carburetor mechanic. New technology in the next ten years brought the electronic fuel injection at a cost of $ 25 and mileage of 22 miles per gallon. The quantity of gas (the appeal) has remained more or less the same (in fact it has declined slightly, as the continued use), but the technology effectively doubled the offer.

Thus, the overall wealth has increased by technology. Taking into account the resources at its own is not an effective way to measure their use. Technology has really a great impact.

Similarly with personal finances, which usually have a relatively fixed set of resources. In most cases it is not easy or possible to simply increase our income, assets, etc. However, the technology we use to manage these resources can make a big difference. Those who use tools to manage their money tend to understand the flow of revenue and expenditure patterns can be better and more informed decisions on the economy and spending, resulting in an increase in wealth.

There are many types of forms and tools to help them, the old school pencil and paper, electronic spreadsheets, sophisticated computer programs and online tools to monitor every penny and tell you exactly where you are and where will be maintained even if the behavior.

Whatever tool you choose is better than nothing. But given the formula - the best of its technology, the more wealth to manage its resources more effectively!