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Brief primer on how to become rich.
Everything in your life, including financial success, depends on your mindset.
If you adopt the philosophy that “Money doesn’t make you happy”, you have already lost.
Money is just a tool. It will just make you more of who you are.
Read books to educate yourself and set your mindset straight. Never stop learning.
Embrace the fact that you are the responsible for your own success or failure. Everything in your life is your fault.
Success is a long-term game. There is no “overnight success”. Think ahead in terms of years. Be patient and persistent.
Ignore the haters and what other people say unless they are on a level of success you wish to attain.
Spend time with peers that also seek success and do not sit passively.
Learn to control your emotions. Always keep a positive attitude. Don’t let negative things affect you. Ditch your TV.
Time is your most precious asset. Protect it. Allocate it intelligently.
Differentiate yourself from the masses.
2) Physical Self
Your health is the most important thing you have. Take care of your body.
Learn about proper nutrition. Exercise frequently. Get adequate sleep. Experiment with meditation and lower your stress levels.
Better health equals better stamina and better results.
3) Money & Wealth
Money is a means of value exchange. Making money means providing value to the marketplace.
Money equation: Income – Expenses
Wealth is the accumulation of resources in order to live life in your own terms.
Your income must be explosive.
Your options are a bit limited in this case:
- Start a business, an online if possible.
- Get a profession in finance, engineering or sales
Make sure your venture is scalable. Think in exponential terms.
Master soft skills and use them to network with successful people. After a certain level, it is about who you know and can partner with.
Keep your expenses low. Postpone the “good life” until you can afford it.
When income increases exponentially, expenses should increase only linearly.
Try to save as high as 80% of your income.
Avoid stupid life altering decisions like early marriage and house/car purchases.
After saving an amount of money as “buffer”, start investing all the rest.
You get the best ROI when you invest in yourself and your own ventures.
At some point you will need to invest in financial assets (stocks, bonds, etc.).
Do not invest in individual stocks. Allocate your time to your ventures instead of doing stock research. Just buy low cost index funds.
Automate investing. Buy every single month unemotionally (Dollar Cost Average) unless there is some obvious bubble. Then, evaluate selling and staying on the sidelines.
7) End Game
When you reach a certain level of Net Worth, start diversifying. You need multiple streams of income.
Optimize your assets for income and liquidity.
When you have made it, make sure to give back.
Live life on your own terms. You have earned it.