The Liquid Effect

Money is like sex and air. It’s no big deal really, until we don’t have enough of it. I’ve spent years scratching around trying to pay the bills and get ahead financially. Sometimes I’m loaded and other times I’m as broke as! It seems like some people really know how to make good money and others don’t. I’m sort of in between, with the capacity to do well at making it but the practice not always keeping up with capacity.

Just like there are three states of water (solid, liquid and gas), there are three states of money.

Here they are:

1. SOLID
   Take a cup of water and freeze it. You’ve got ice. Take a few hundred dollars and pop it in the bank, and you’ve got a bank balance.
2. LIQUID
   Melt the cup of water and you’ve got a drink. Pay staff their wages and you’ve put the money to work.
3. GAS
   Boil the water and you’ve got steam. Invest into some hairbrained scheme or buy an indulgence and your money has vapourised.

The interesting thing I’ve found about money is that the real power comes from its liquid state. Sure, its nice to receive a hefty sum or to build up your savings and have it all sitting in the bank. And it’s fun to throw a little cash around on a celebration at Valentines or Rainbows End or a little bit of bling. But what I really enjoy seeing is the way that USING money can build something of value. Investing it and leveraging it by getting it to work. That’s what I call “The Liquid Effect”.

I’ve been investing into various businesses now for most of my life - solidly now for almost 20 years, and much of my time and money has evaporated as I’ve made mistakes, changed direction or things have simply changed around me.

When I set up Team Electronics we used the byline “Computers - No Jargon, No Pressure”. It was a great jingle in the days of 386 Computers when computer salespeople were one rung above used car salesmen (or one one rung below if you happened to be a used car salesman). It was a good little business at the time and I was advised to sell the business 18 months after I had set it up. “No way!” I said. “I’ve got my little honey-pot here and I’m not letting it go” - a big mistake and I watched as disaster befell the business when I put a manager in to run it, and he did everything wrong. I clawed it back eventually but I watched my money go from liquid, to solid, to gas over a 3 year period.

When I developed Kiwi Software, I liked being able to invest into software - something that could be sold with a high profit margin (like as in, 100%!).

Putting money in its solid state to work, meant that I had better returns - something that is still returning profit years down the track.

When I developed Go Kiwi Internet, I looked at a business model where my goal was to build passive income and it is a good little business as a result.

I applied this principle when I set up Red Cross Ministries (it does charity websites for churches and other parachurch organisations). Using resources at hand I created, and create value for others. It’s a good feeling, being able to help, and do good.

The liquid state, where an investment of solid (be it time energy or money) that turns into longterm value is great use of our assets. It’s like water that pours over a water-wheel. The water remains in its same state, but achieves something positive in the process. Sitting in a pond water just goes stale. Evaporating, it just makes clouds. But it is when it is flowing that the real power is achieved.

This water cycle is just like the way God uses us for His purposes. When He gives us life, and talents and opportunities, these are like the solids. They just exist. But when we put then to use, Ahh, that is when we see them turn into that all-powerful liquid state.

Jesus gave advice to His followers along these lines when He was giving instructions to His disciples on their planned outreach:

As you go, preach this message: ‘The kingdom of heaven is near.’ Heal the sick, raise the dead, cleanse those who have leprosy, drive out demons. Freely you have received, freely give.
Matthew 10:7-9

It’s when we get off our butt and DO something for Him that the power comes into its own and we get The Liquid Effect. It’s when the Holy Spirit flows through us and His magic is outworked in others that we get real traction. Not when we receive and keep it. We just gotta get outside of ourselves - getting stretched to give.

Stretching things to gain The Liquid Effect is the V - I - C - T - U - S     I - N      A - M - B - I - T - U - S way.