The X-Curve Concept

Although most Financial Literacy based investment, MLM (Multilevel Marketing) companies or even Cooperatives use the X-Curve to promote their business side, I still consider it to be the best concept I have ever seen and the only answer in solving poverty.

So what can we learn about the X-Curve Concept?

 

If we look at the image above, you will see two arrows. One is the arrow which says Law of Decreasing Responsibility and the other is Law of Building Wealth. By the way, the X-Curve was taken from VCM or from a cooperative called Nutriwealth.

It all starts from the left going to the right. Let's see, I hope I can explain it better than how I understand it. 

RED: Law of Decreasing Responsibility

This arrow should be going down from left. Of course when you are young, you don't earn much - specially when you are still a student. When you get your first job, we establish our needs and wants and our goals. After a while, we settle down and have our own family, take loans like house and lot or condo, or take a car loan, plus some other general responsibilities like bills and allowances. Of course bills are things you can't take out of your responsibilities such as food, drink, shelter, electricity and some other needs. There are some responsibilities like long-term loans which should be settled quickly or should be prioritized because the more longer it takes the more it gains interest or the balloon payment grows as well. Generally, these responsibilities should be taken care of by your wealth or your income. So lets go to the next arrow.

BLUE: Law of Building Wealth

This arrow should be going up from left which means it should overcome your responsibilities. If you have more wealth than your responsibilities then that is good but remember when we retire - of course it means we have no means of income. That is why, we should do our best to multiply our income source while we are on our productive stage. Also remember that when we retire, some of our needs are still there like food, shelter, electricity, clothing, etc... and without a source of income, that can only mean we would be depending on what we have on our pockets. If we don't have a retirement fund then we would be depending on our children - that is if you lived long. What if the head of the family died and the wife was left behind along with the children? The income source will stop as well and they will have to fend for themselves without an income source.

So how do we build wealth? We can't build wealth if we are not financially protected. It's like wearing your armor before going to battle. One accident can drain years of savings so in order to avoid that you must protect your wealth or savings with a buffer or protection which will be your armor.

How to protect your future and your family's future as well - Protecting Our Future and Our Family

Feel free to comment or make a suggestion and don't forget to subsribe and share if this article has been helpful to you. Thanks and happy investing.

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