Everyone wants to get rich, but very few actually manage to do so. In this blog, we will discuss some essential principles that can help you achieve wealth and financial freedom.
1. Seek wealth, not money or status.
Wealth is having assets that earn while you sleep. Money is merely a medium of exchange, and status is your place in the social hierarchy. Focus on creating assets that generate passive income.
2. Understand that ethical wealth creation is possible.
If you have a negative attitude towards wealth, it will elude you. Instead, focus on creating value for society and generating wealth ethically.
3. Ignore people playing status games.
People who play status games are not interested in creating wealth but rather in maintaining their position in the social hierarchy. Avoid them and focus on creating long-term value.
4. Own equity to gain financial freedom.
Renting out your time will not make you rich. Instead, focus on owning a piece of a business to gain financial freedom.
5. Give society what it wants but doesn't know how to get.
To get rich, you need to provide society with something it wants but can't get. Find an industry where you can play long-term games with long-term people.
6. Play iterated games.
Compounding is the key to success in life, whether it's wealth, relationships, or knowledge. Focus on playing iterated games that generate returns over the long term.
7. Pick business partners with high intelligence, energy, and integrity.
Business partners can make or break your success. Choose partners with high intelligence, energy, and integrity. Avoid cynics and pessimists as they are self-fulfilling.
8. Learn to sell and build.
Selling and building are two essential skills for success. If you can do both, you will be unstoppable. Learn to build specific knowledge and leverage it.
9. Arm yourself with specific knowledge, accountability, and leverage.
Specific knowledge is knowledge that you cannot be trained for. It comes from pursuing your curiosity and passion. Embrace accountability and take business risks under your name.
10. Leverage your judgement.
Leverage is a force multiplier for your judgement. Capital, labor, code, and media are all forms of leverage. Use them to your advantage to generate wealth.
11. Become the best in the world at what you do.
Redefine what you do until you become the best in the world at it. Focus on building specific knowledge and leveraging it to achieve success.
12. Work hard and set an aspirational personal hourly rate.
Set an aspirational personal hourly rate and stick to it. Focus on tasks that generate returns higher than your hourly rate.
13. There are no get-rich-quick schemes.
Don't fall for get-rich-quick schemes as they are often scams. Focus on building value for society and creating long-term wealth.
14. Apply specific knowledge and leverage.
Apply your specific knowledge with leverage, and eventually, you will achieve what you deserve. Wealth and financial freedom are achievable if you follow these essential principles.
Conclusion
Getting rich is not easy, but it's achievable. Follow these essential principles to create wealth ethically and achieve financial freedom. Remember to focus on building specific knowledge, leverage, and long-term value for society.