The Purpose Of Wealth
Assets that earn while you sleep.
The Purpose Of Wealth
The purpose of making money is:
(i) Freedom: The ability to do what you want, when you want, with whoever you want.
(ii) Inner Peace: Living a stress free financial life.
(iii) Skill: The pursuit of growing new skills.
Make Abundance for the World
Typically wealth is created through businesses.
[A business] creates and delivers something of value that other people want or need at a price they’re willing to pay in a way that satisfies the customer’s needs and expectations so that the business brings in sufficient profit to make it worthwhile for the owners to continue operation.
Josh Kaufman, “Personal MBA”
The “economic pie” larger today than it’s ever been. And it’s growing exponentially.
And there’s unlimited opportunity to create something new and valuable for the world.
Create Value Through Your Day Job
If you’re working a 9-5, like I am, you can still create value through your own job. Find ways to make the business you work for:
Make more money.
Save more money.
Reduce risk.
Have A Bias For Solving Hard Problems
When you solve enough challenging problems:
You develop skill.
You gain leverage.
Your earning power increases.
The Grass Is Greenest Where You Water It
When I was at Oracle, a sales director once said:
The grass is greenest where you water it. Don’t buy a new house just because you’re not caring for your own lawn.
Sales Director, Oracle
This is great advice because every job has its ups and downs. Sometimes career feels like a roller coaster. Just because it’s a bumpy ride, and makes you want to blow chunks, doesn’t mean you shouldn’t give 100%.
I’ve rarely regretted sticking with something through tough times.
I’ve often regretted quitting or not giving 100% when things get tough.
Be Top 25% At A Few Things
Scott Adams, author of Dilbert says that if you want to be extraordinary, you have two paths:1
1. Become the best at one specific thing.
2. Become very good (top 25%) at two or more things.
Being the best at anything is damn near impossible because there can only be one. But being very good at two or more things is doable.
Scott Adams was top 25% at drawing, making jokes, and understanding business. He combined them together to make Dilbert.
Instead of trying to be the best at one thing, just try to be very good at two or more things.
Play The Long Game
Most returns in life come from compounded interest over time. If you get wiser every day, with a long enough time scale, you will become wealthy.
The late Charlie Munger has responded to ambitious young people trying to get as wealthy as him, but faster:
Spend each day trying to be a little wiser than you were when you woke up. Discharge your duties faithfully and well. Step by step you get ahead, but not necessarily in fast spurts. But you build discipline by preparing for fast spurts... Slug it out one inch at a time, day by day, at the end of the day -- if you live long enough -- most people get what they deserve.
Charlie Munger
Everybody wants to be wealthy right now. But markets are inefficient. Put yourself in positions to gain wisdom every day.
Be The Best Version Of You
In every field, only one person can be #1. It’s extremely difficult and competitive to be #1. Because there’s only one.
You know what else there’s only one of? You.
Work on projects that tickle your genuine interests. With each project, you’ll bring something truly valuable into the world.
10, 20, 30 years later, you’ll be #1 at something: being the best version of you.
— Grant Varner
Based on ideas from Scott Adams’ Career Advice – The Dilbert Blog, including the “talent stack” concept.
excellent post. liked it!
Great read! The advice from Scott Adams is right on point.
Today I learned 🙏.
Thank you