Personal Financial Engineering uses...
the velocity of money to create a multiplier effect on the wealth creation process.
Thus:
w = mV2 x r x t
wealth = money x velocity of money x rate x time
The velocity of money multiplier effect is the main functioning money theory in our capitalistic society. It is important that money remain in motion in order to have a multiplier effect to create a healthy economy. Likewise, an individual can follow this same theory of money in order to create a healthy financial life. |