Professor Guerrero's Blog

mguerrero@gmail.com

Co-author of East of Tiffany's, 13 short stories of a Latino immigrant's success in USA; a journey from West Harlem to Sutton Place and Park Avenue. Check out the reviews in Amazon.com and in Barnes and Noble.

on KINDLE on NOOK

My best seller as of now is

Titanes de la Filosofia

Professor Guerrero's Blog: Adam Smith's Blueprint to Riches: Money Making Opportunities Hidden in Plain Sight Professor Guerrero's Blog: Book Reviews, Human Interest Articles, Accounting Lessons, and Writing Techniques

Book Reviews  

Books

Sentence Openers Book: FREE Lessons

Jane Austen  

Boethius: Consolation of Philosophy

How to Become a Writer  

Personal Finance  

Self Help, Wealth, & Learning

Greeks Romans Trojans  

Feminism  

Great Gatsby: Is Nick Gay?

All my books are now in NOOK

Ideas About the Novel is a prophetic book that all writers must own.

Ideas About the Novel by Ortega y Gasset - my translation $0.99


Next to Cervantes, Benito Perez Galdos is the most beloved Spanish writer of all times.

Torquemada at the Stake by Perez Galdos- my translation $0.99

Lazarillo of Tormes - my translation $0.99
Read it in contemporary English -- No Thous, Thees, or King James' Bible language. Transliterated into easy language for enjoyable reading pleasure. Because The Lazarillo of Tormes pointed a new direction, European and American literature benefited with titles that today are considered classics: Cervantes’ Rinconete and Cortadillo; Daniel Defoe’s Moll Flanders, Henry Fielding’s Tom Jones and Joseph Andrews; Tobias Smollett’s Roderick Random, and Peregrine Pickle; Voltaire’s Candide; Charles Dickens’ David Copperfield. And many others to include American works ranging from Mark Twain to Saul Bellow.

Dehumanization of Art by Ortega y Gasset - my translation $0.99
The Dehumanization of Art— is now a constant in music, literature, aesthetics, and philosophy, having come to mean that in post-modern times human-shaped mimesis (representation of the human) is irrelevant to art. According to Ortega, the arts don't have to tell a human story; art should deal with its own forms—and not with the human form.

Sentence Openers
How writers open their sentences makes prose agile, interesting, and athletic. This e-book teaches how to break the pattern Subject-verb-object--and discard openings that begin with nouns, articles, and pronouns.

East of Tiffany's - bestseller $5
With the city as its backdrop "East of Tiffany's" is filled with earnest tales of love, loss, faith, success and morality. While business terminology is interwoven throughout these short stories, it's not business lessons that I take away with me, but life lessons. The circumstances and the characters' profound humanity are relatable despite their zip code . "Luke, Postmodern Man" offers a new vista into faith, suffering, and love of neighbor. Way after you read this book you'll find yourself thinking about the various characters throughout the series of stories and will find solace in their unwavering faith. The narrators' ability to reflect on their hardships with such serenity is inspiring.



My writing was as flat as a sidewalk. And then I downloaded ...

Mary Duffy's Toolbox for Writers
After I purchased Mary's e-book I started to get 'A's in my essays and term papers! Every page is filled with great writing tips, training lessons, and wonderful useful writing skills! Not only do I write essays for college, but also short stories!
--IVONNIE Indrawan
College student
Sentence Openers on KINDLE

Sentence Openers on NOOK













All my books are now in KINDLE


Ideas About the Novel by Ortega y Gasset - my translation $0.99
Torquemada at the Stake by Perez Galdos- my translation $0.99
Lazarillo of Tormes - my translation $0.99
Dehumanization of Art by Ortega y Gasset - my translation $0.99
Sentence Openers
East of Tiffany's - bestseller $5


The most beloved short story from Spanish literature
All my books are in NOOK $0.99 or in Amazon KINDLE $0.99








All my books are now in NOOK

Ideas About the Novel is a prophetic book that all writers must own.
Ideas About the Novel by Ortega y Gasset - my translation $0.99

Next to Cervantes, Benito Perez Galdos is the most beloved Spanish writer of all times.

Torquemada at the Stake by Perez Galdos- my translation $0.99

Lazarillo of Tormes - my translation $0.99
Read it in contemporary English -- No Thous, Thees, or King James' Bible language.

Dehumanization of Art by Ortega y Gasset - my translation $0.99
The Dehumanization of Art— is now a constant in music, literature, aesthetics, and philosophy, having come to mean that in post-modern times human-shaped mimesis (representation of the human) is irrelevant to art.

Sentence Openers
How writers open their sentences makes prose agile, interesting, and athletic.

East of Tiffany's - bestseller $5
With the city as its backdrop "East of Tiffany's" is filled with earnest tales of love, loss, faith, success and morality.



My writing was as flat as a sidewalk. And then I downloaded ...

Mary Duffy's Toolbox for Writers
After I purchased Mary's e-book I started to get 'A's in my essays and term papers!
--Ivonnie Indrawan
College student
Sentence Openers on KINDLE

Sentence Openers on NOOK





Available in KINDLE $0.99


Available in KINDLE $0.99

Saturday, August 10, 2013

Adam Smith's Blueprint to Riches: Money Making Opportunities Hidden in Plain Sight

Given the perennial popularity of 'How to get rich' books, one could assume that those books contain arcane, hermetic, or even miraculous formulas for people to get rich; that all one has to do is find that elusive message.

But, hard as you might try to dig up that nugget of knowledge, you won't find it. Why not? The answer is simple: there's no such a thing as a magic formula.

Over my long journey in business and academia, I've found that the closest resemblance to that magic formula for riches is the awareness and good practice of four concepts: (1) Solvency, and (2) Profitability (3) A little knowledge of what Adam Smith taught, and (4) Hard work.
Many people think that solvency is a business concept, and that only applies to business situations, such as maintaining a good credit rating, or paying debts on time. In my view, solvency is a virtue --not only in business affairs but also in private affairs-- which people must develop and maintain throughout their entire lives if they wish to become wealthy. Solvency leads to capital formation, and capital formation to the growth of wealth.

What is Solvency?
When I was young, one of my favorite books was Charles Dickens' David Copperfield. Without major mental effort I can recall and delight in the woes, decencies, and indecencies, of the many characters that populate the novel. Yet, nothing stands out as Mr. Micawber, the garrulous, well-intended, yet unfortunate man who led his family into abject poverty.

Good intentions and awareness are insufficient to handle one's affairs in a productive way. Good practice is indispensable. Mr. Micawber's advice was wise but he never practiced it himself:

'My other piece of advice, Copperfield," said Mr. Micawber, 'you know. Annual income twenty pounds, annual expenditure nineteen, nineteen six, result happiness.

When your income, your 'take home pay,' or your revenues are greater than your expenses, then the welcome result is happiness. Why happiness? Simply because not only you are living within your means, but you are also saving something--saving for capital formation.

Now, let's look at the reverse, as seen by Mr. Micawber:

'Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery. The blossom is blighted, the leaf is withered, the God of day goes down upon the dreary scene, and-and in short you are for ever floored. As I am!"

Ah! How true that is. When expenses are greater than income, then the unwelcome result is disaster, and human disaster is but undisguised misery and wretchedness. Living beyond one's means causes one to be "for ever floored." And since England had no bankruptcy protection laws in those years, Mr. Micawber was remanded to King's Bench Prison.

One way to get trapped in a ditch --from which is difficult to get out-- is by living beyond one's means: the result is that you are forever stucked in that trench. In our contemporary economic times, that ditch is called "Credit Card Buying." When people realize that they owe more than they have in new worth, then they realize that they are insolvent, which is one step away from filing for bankruptcy protection.

What is Profitability?
What makes people wealthy is the awareness of profitability. In Accounting terms, when the revenues are greater than the expenses, the "bottom line" or net income is positive. The opposite will be deficit or loss.


To absorb this simple concept one doesn't have to be an accountant, which is but what Mr. Micawber lectured David Copperfield about.

How does one solve the "bottom line" problem? Only two things can take place: either you increase your income, or you decrease your expenses--simple as that.

Many people live a life of "quiet desperation" --as Thoreau, said-- living from paycheck to paycheck, or from hand to mouth, or even worse: living with the ever present angst of where their next meal will come from.

If a touchy reader says to me, "You're telling me what I already know!" I will reply: "So, what is your choice? Increase your income or cut back on your expenses?" The choice is ours, it doesn't lie with outsiders--you must choose.

In my experience I've always found it easier to look for additional income rather than to cut back on expenses. Others may think differently, but I believe that opting to reduce one's standard of living is not only backwards, but it diminishes expectations, causing people to feel pessimistic about the future.

In his landmark book The Wealth of Nations, but in particular in the section "Division of Labor," Adam Smith discusses three points:

(1) Humans show a propensity "to truck, barter, and exchange one thing for another." Though smith isn't explicit, he hints that this propensity may well be inherent in humans.
(2) Humans don't differ greatly in natural talents; the difference is caused by habit, custom, and education.
(3) By the division of labor (specialization), humans produce a surplus of product that they can sell to others.

None of the above discussion would have any practical value if one doesn't reduce the discussion to a very simple conclusion:

To satisfy not only your needs, but also to have something leftover, you either sell your labor or you sell a product, or both.

So, if you sell your labor, then your labor must be worthy, it must be sought, it must be valuable to employers. Training and education give workers the skills necessary for the labor market; the higher the skills the higher the compensation. While a bookkeeper will earn $20 an hour, the same bookkeeper with training and a course work as a C.P.A., (certified public accountant) will command $200 and hour-or more. The handyman in my building who used to earn a pittance is now earning high fees as a certified electrician.

However, neither spiritual success nor material riches will accrue unless we work hard. A terrific nugget that I've alway carried with me comes from Proverbs X:
He becometh poor that dealeth with a slack hand:
But the hand of the diligent maketh rich.

Not to brag but to share my experiences, I can say that I owe my good fortune to Adam Smith's insights: I learned valuable marketable skills, and I also learned to sell products my skills. Yet nothing will be accomplished if one isn't judicious, for as Adam Smith said in his Wealth, "Capitals are increased by parsimony, and diminished by prodigality" (CH III.,PT II).

Of course, 90 per cent of the workers live by their skills, collecting paychecks for salaries or wages. About five per cent will develop entrepreneurial spirit and learn to create and sell products; the rest, four to five percent fill the ranks of the unemployed.

Nothing prevents an individual from selling his or her skills and also selling products. One must choose. By having skills and selling products, I generate net income from which I pay all my monthly bills, with the surplus or leftover augmenting my net worth every month.
The Wealth of Nations was published in 1776, so the language is --by today's standards-- a little stilted; however, the section on "Division of Labor" is fresh and contains a trove of wise insights. Reading these two or three pages will help you get your share of the American dream--and so move from roaches to riches, from the outhouse to the penthouse.
You might --at this point-- be curious as to what prompted me to write this article. My answer is simply: self-interest! Indeed. Self-interest. When my students develop skills, we all benefit. Adam Smith said better in his Wealth of Nations:
It is not from the benevolence of the butcher, the brewer, or the baker, that we expect our dinner, but from their regard to their own interest. We address ourselves, not to their humanity but to their self-love, and never talk to them of our necessities but of their advantage.


Success is for All of Us!

Inferiority Complex?

3 Qualities for Success

The Best Leader?

How I Manage my Time

Adam Smith and Wealth


Boethius and Fortune


Employee of the Moth Everyday


If you are interested in seeing how I achieved personal success in the United States, you may find my book of short stories East of Tiffany's interesting. Some of the stories are based on my life as an executive, investment banker, and financial adviser to wealthy investors in the East Side of Manhattan.
Close to half-million people have read East of Tiffany's so far. Order your copy from either Amazon.com or Barnes and Noble. See the link on the right sidebar.

Since English is my second language, Mary Duffy --a master of the English language-- aided me not only with the editing, but she also contributed her own stories. I love her writing in "When You Wish Upon a Star." This is a story based on a personal friend's life.

Senada Selmani, model

To write great blogs, e-mails, term papers, essays, or fiction - Get Mary Duffy's

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Professor Guerrero's Blog

Co-author of East of Tiffany's, 13 short stories that will warm your heart - See 101 reviews in Amazon.com and 37 in Barnes and Noble.

on KINDLE on NOOK

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