Wealth = Focus + (Stoicism x Time x Diversification)
Wealth is the absence of economic anxiety; we choose how to live -> know how much is enough for you.
Assets generate passive income; ideally should be > your burn rate.
Stoicism: Character and Community. Slow Down!
Pattern of behavior/action -> character.
Habits become your identity; his example: a writer.
Work for work’s sake = economic masturbation.
Get strong to provide for others. Gain power for justice.
Luck plays a huge role in everything.
Develop a willingness to move through failure without losing enthusiasm.
Decision Making: Listen to emotions, but don’t necessarily follow them.
Build a strong community and give back.
Form a group of advisors who give you counsel.
You will model the money habits of your friends.
Married individuals are 77% wealthier than single people.
Focus: Earn Money. Find Your Talent
Most rich people worked hard for at least 20 years.
Goal: work you are good at + financially rewarding + build mastery.
Streamline your life to focus on what matters.
Note: Top 3% of YouTube channels get 85% of all views.
1M views/month generates $15k in annual revenue.
Talent: what comes easy to you that is difficult for others.
Your 20s: Workshopping.
Your 30s: Getting good at field.
Your 40s/50s: Harvesting money.
(Talent + Focus) -> Mastery -> Passion
Ok to be bored by tasks but not by substance.
Communication is a universally important skill.
Grit: Intersection of passion and perseverance.
Some obstacles can’t be changed; not problems, circumstances.
Outsiders often value you more than your employer.
Be loyal to people, not companies.
Time
Compound interest - evil twin is inflation. Real return is ROI less Inflation
Present Experience
We perceive events in near future as more significant than those in the distant future.
What is stealing your time? Social media is awful.
When young, focus on tracking your spending not savings.
Avoid Commitment - subscriptions, assets that require maintenance.
Trade-off between the present self and future self. There will always be surprises.
Diversification
Use capital to invest and generate income.
Investment options: Passive vs. Active - Diversified vs. Concentrated.
Most active investment is with your employer.
Diversified, passive indexes always beat active, individual investors.
Money is a means we use to exchange time.
Assets have different values to different Buyers - Day Traders, L.T. Investors.
Real Estate is the best investment -> rental properties.
Disclaimer: These are notes I created from reading the book. This is not completely comprehensive and may include errors and typos. No guarantee is provided as to the accuracy of the information. It is provided for educational purposes only.