Building Wealth and how it is created

[tattooedbuddha]

In this thread, I'll be writing about building wealth and how it is created, as a reference I'll be using the book "Almanack of Naval Ravikant" which I suggest you read after you've read this thread.
Disclaimer: I am not affiliated, associated, authorized, endorsed by, or in any way officially connected with the author, book, or any of its subsidiaries or its affiliates. This post is only meant to bring about the discussion around the topic of building wealth.

Now, let's get started.

Let's first define wealth so as to avoid confusion in the discussion, according to the book wealth is defined as: "Wealth is assets that earn while you sleep."

Simple right? i.e. Robots in a factory cranking out products, equity in businesses, money in circulation not sitting idle but instead being invested. Also, computer programs serving customers while you sleep.

What is then the difference between wealth and money?

The simple answer is basically that money is how we transfer wealth, money is the social credit, and the ability to have credits and debits of other people's time.

What is not wealth?
Wealth is not:

• Money sitting idle in a bank account
• Working a 9-5 earning a wage (unless you automate your job)
• Assets not generating any form of value

Now that we got that cleared up, let us get to the fun bit, the reason you're reading this thread in the first place, building wealth and understanding how it is created.

First of all, these are only principles you apply to your life, not a get-rich-quick scheme. (side note: there are no get rich quick schemes, those are just someone else getting rich off of you)

The principles behind building wealth:

• You’re not going to get rich renting out your time. You must own equity—a piece of a business—to gain your financial freedom.
• You will get rich by giving society what it wants but does not yet know how to get. At scale.
• Play iterated games. All the returns in life, whether in wealth, relationships, or knowledge, come from compound interest.
• The internet has massively broadened the possible space of careers. Most people haven’t figured this out yet.
• Don’t partner with cynics and pessimists. Their beliefs are self-fulfilling.
• Learn to sell. Learn to build. If you can do both, you will be unstoppable.
• Code and media are permissionless leverage. They’re the leverage behind the newly rich. You can create software and media that works for you while you sleep.
• If you can’t code, write books and blogs, record videos and podcasts.
• There is no skill called “business.” Avoid business magazines and business classes.

I could go on and on with these principles but the thread would become several pages long, you get the point and if not, read the book, it's free.

In my experience, it all boils down to this, build something unique society wants through specific knowledge, and then scale, scale, scale.
Rinse and repeat.

 

[FromAfrica]

Nice tips bag

Thanks alot for sharing

Thanks

 

[Dopious]

The book "Almanack of Naval Ravikant" seems like a nice read, found it in pdf form on Google .. Will have to read it now .. =)

 

[OccultKingdoms]

• If you can’t code, write books and blogs, record videos and podcasts.

What if I do all of these? Someone told me I will be homeless if I will be mr. do-it-all.

Employers hate me for that versatility. None of them can understand how someone can be a visionary, writer, programmer, SEO, marketer, researcher and designer at the same time.

In reality many people on this forum are like that. I think that's why BHW is still alive. There's not many other places in the world to accept that. They want specialists.... spend 20 years in one domain and rotten in a cubicle.

• Don’t partner with cynics and pessimists. Their beliefs are self-fulfilling.

I worked with these too much. Crazy personality changes. I started to reverse these nasty habits. Finally feeling like myself again.

For example, someone was saying he's a great marketer and a great communist at the same time. It just doesn't make sense.

Everyday is the end of the world for some people. And they're wondering why they can't sleep at night.

 

[Flavio A]

very nice thread thank you for sharing

 

[tattooedbuddha]

What if I do all of these? Someone told me I will be homeless if I will be mr. do-it-all.

Employers hate me for that versatility. None of them can understand how someone can be a visionary, writer, programmer, SEO, marketer, researcher and designer at the same time.

In reality many people on this forum are like that. I think that's why BHW is still alive. There's not many other places in the world to accept that. They want specialists...

Become your own employer or keep looking for better ones that understand.

 

[Ashk881]

What if I do all of these? Someone told me I will be homeless if I will be mr. do-it-all.

Employers hate me for that versatility. None of them can understand how someone can be a visionary, writer, programmer, SEO, marketer, researcher and designer at the same time.

In reality many people on this forum are like that. I think that's why BHW is still alive. There's not many other places in the world to accept that. They want specialists...

The world doesn't need specialists. It needs people who can do stuff. Doesn't matter if they do one thing outstandingly well or do several things good enough.

And employers don't hate you for that versatility. They hate you because you can't do stuf they want you to do good enough (by whatever metric they judge "good results"). And in one way they are right about it.

You can do one thing at really high quality in X hours. Or do 10 things with 1/10th the quality each in the same X hours. And in modern markets, the 1/10 quality doesn't cut it. Thats why employers get specialists. They don't want 1/10th the result with one employee. They would rather employ 10 specialists each really good at what they do instead.

Why?? Because they have got the money and they know high quality stuff sells.

 

[paydette]

Learn to sell. Learn to build. If you can do both, you will be unstoppable.

Skills stacking leads to $uccess

For example, someone was saying he's a great marketer and a great communist at the same time. It just doesn't make sense.

Communists are great marketers. They sell bullshit and way too many buy it.

 

[ken017]

How do i figure out what soceity wants?

 

[tattooedbuddha]

How do i figure out what soceity wants?

Experiment and iterate everything you do.

 

[HustleTong]

Naval ravikant is a really wise guy
Nice write-up

 

[tattooedbuddha]

Naval ravikant is a really wise guy
Nice write-up

I agree, thank you.

 

[warriorsam53]

What if I do all of these? Someone told me I will be homeless if I will be mr. do-it-all.

Employers hate me for that versatility. None of them can understand how someone can be a visionary, writer, programmer, SEO, marketer, researcher and designer at the same time.

If you’re good at all of those things, why do you care what an employer thinks? More importantly, why do you still have an employer?

You should be doing your own thing. Except for the visionary part, all your skills can be monetised easily.

 

[mrbossy]

Nice confident pointers mate !

 

[tattooedbuddha]

Nice confident pointers mate !

Thanks!

If you’re good at all of those things, why do you care what an employer thinks? More importantly, why do you still have an employer?

You should be doing your own thing. Except for the visionary part, all your skills can be monetised easily.

I agree 100%.

 

[OccultKingdoms]

If you’re good at all of those things, why do you care what an employer thinks? More importantly, why do you still have an employer?

You should be doing your own thing. Except for the visionary part, all your skills can be monetised easily.

I don't have. I'm just a horrible person who was addicted to stuff for 8 years. I am killed by low self-esteem and persimony that started occuring when I found my first job.
I spent all my money to run away from this horrible life. Now it's even bigger s**t because all this stuff I know is trash and it puts me behind.
I do everything for free and will do so forever I think. I have no perspective to earn a dime. I only serve my machine and buy electric power to keep it alive. One day some part of it will die and I won't be able to pay for replacement.

 

[ken017]

I don't have. I'm just a horrible person who was addicted to stuff for 8 years. I am killed by low self-esteem and persimony that started occuring when I found my first job.
I spent all my money to run away from this horrible life. Now it's even bigger s**t because all this stuff I know is trash and it puts me behind.

i hope you overcome your pain and move foward. i too was in a similar spot, but now im trying to move foward. our lifes aren't over yet!

 

[warriorsam53]

I don't have. I'm just a horrible person who was addicted to stuff for 8 years. I am killed by low self-esteem and persimony that started occuring when I found my first job.
I spent all my money to run away from this horrible life. Now it's even bigger s**t because all this stuff I know is trash and it puts me behind.
I do everything for free and will do so forever I think. I have no perspective to earn a dime. I only serve my machine and buy electric power to keep it alive. One day some part of it will die and I won't be able to pay for replacement.

I'm sorry to hear that. I hope you can overcome your challenges.

 

[awesomewebsites]

Scaling is what people will struggle with. It is easy to find ideas like making $50 a day but most of them have the issue that it cannot be scaled.

 

[tattooedbuddha]

Scaling is what people will struggle with. It is easy to find ideas like making $50 a day but most of them have the issue that it cannot be scaled.

Scaling can be tricky and expensive in some cases, that's part of why iteration + time is needed.