How to ‘create’ Wealth?
“Wealth is assets that earn while you sleep.”
The purpose of wealth is freedom; it’s nothing more than that, while money is how we transfer wealth.
The ultimate steps to wealth creation –
1 – You are not going to get rich renting out your time. You must own equity, a piece of the business to gain your financial freedom.
Wealth creation must be a nonlinear approach, wherein you have to take on the risk, accountability, intellectual property, and the brand. It is necessary not to link your inputs very closely to your outputs, fundamentally because if your inputs are matched to your outputs, you are replaceable, and you’re not being creative.
2 – “The most dangerous things are heroin and a monthly salary” – Nassim Nicholas Taleb
The aspects of persistence and consistency are a must in wealth creation, it is rightly said that, “The most dangerous things are heroin, and a monthly salary.”, because they are both highly addictive. It is essential to forgo instant gratification and focus on exponential wealth creation, by making money in discrete lumps. Ideally you want to make your money in discrete lumps, separated over long periods of time, so that your own lifestyle does not have a chance to adapt quickly.
3 – Give society what it wants, but doesn’t know how to get at scale
In order to be wealthy, you must figure out which one of those things you can provide for society, that it does not yet know how to get, but it will want, that’s natural to you, and within your skillset, within your capabilities. Then you have to figure out how to scale it. The first step is the act of creativity, as you create it just because you want it. Knowing how to build it you figure out how to get it to other people.
4 – Pick business partners with high intelligence, energy and integrity
This is the three-part checklist that you cannot compromise on. Essentially, to create things, you have to be a rational optimist. Rational in the sense that you have to see the world for what it really is. And yet you have to be optimistic about your own capabilities, and your capability to get things done.
