The Principles of Capitalism

Whether we like it or not, capitalism is the financial and economic system which rules the world. Even those countries which identify as socialist or communist countries have a role to play in the global economy and the only way in which they can participate is indeed within the capitalism system. There are many negatives we can point out about capitalism, but it’s the economic system that’s here to stay so you might as well dedicate a good chunk of your time trying to figure it out

So if you want to get ahead in the capitalist world we live in, here are the principles of capitalism:

Invest your time wisely

There’s a reason why some of the best years of your life are set aside for the acquisition of an education. If it’s a bit too late for you to go back and make better choices in your education then take it as a lesson to invest your time wisely, from here and on. The basics of this principle are that you should invest your time into the creation of an asset which can earn you money without your further need to get directly involved.

Nobody works harder than money

This principle of capitalism builds on from the previous one of investing your time wisely. Once you come into some money then you should invest that money wisely because nothing and nobody works harder to make money than money itself. Capital is what drives capitalism, which is precisely the reason why it’s called “capitalism” in the first place.


Never miss out on an opportunity to make money, i.e. never pass up on an opportunity to make some kind of deal that leads to a sale. Basically, capitalise! When the opportunity presents itself and conditions are at their optimal, don’t rest on your laurels and make the mistake of thinking that things will be like that forever. It can all end in a flash and often it usually does, so when there is an opportunity to capitalise, capitalise!

This is not to say you can’t make money when conditions are not so good, but obviously it’s much more difficult and pretty much every opportunity these days gets saturated very quickly.

Knowledge is financial freedom

The kind of knowledge which sets true capitalists apart from the rest is not typically contained in a prescribed textbook. Rather, it’s knowledge that you acquire yourself and that is what leads to financial freedom. For example, the mind of a capitalist is always working to learn about opportunities to take advantage of, such as how you wouldn’t necessarily be trying to find out the required credit score to rent or lease an apartment if you were indeed looking to rent or lease.

If you had some excess money which is sitting idle in a savings account or somewhere where the growth is slower than inflation then it is the pursuit of this kind of knowledge which leads to financial freedom. You can lease the apartment and then AirBnB it or something like that.

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