Want to become wealthy?
Here are 5 fundamentals for gaining financial security
The most knowledgable person about wealth the last 30 years is probably Scott Galloway.
He grew up poor, made millions with his companies and then lost all of his fortune. He went literally bankrupt.
This happened not just once, but twice.
Now he's worth 100+ millions. So he definitely knows about wealth, maybe more than anyone else.
Few months ago, Scott Galloway shared the 5 rules for building wealth in his book, the algebra of wealth. And these rules are a must-read for anyone who want to be financially successful.
Here’s the breakdown:
Rule #1: Define a goal besides money
Money is should not be the goal, but the mean to an end.
If you want to make money for the sake of being richer you will never have enough.
Instead, you need to understand what is your inner motivation. In my case, I want to become wealthy so that I can:
Provide a better life for the people I care about
Improve my quality of life (bigger bank account = better healthcare, better food, better life)
Work because I want to, not because I have to
Ask yourself what are the reasons why you want to gain financial security. Remember them in your journey.
Rule #2: Don't let your impulses control you. Control them instead
We all have emotions, and sometimes it is hard to remain control them. But what does control mean here?
It doesn't mean repressing your emotions or ignoring them. It means acknowledging their existence without letting them take the steering wheel.
Getting angry is ok. Yelling at others because you are angry is not.
Rule #3: Exercise
It takes people a long time to learn this one
This might seem like a very generic advice. But it has strong scientific foundations. There is a direct link between successfull people and exercise.
Exercising improves the state of your body, boost your energy and allows you to let out emotions in a healthy way (see rule #2).
There's a reason if 90%+ of millionaires train at least 3 times per week.
Rule #4: Make rich friends
Especially if you were not born rich.
Why? Not because they are better human beings all around, but becuase they are some steps ahead of you in the game.
And you can learn something form them. Not only how do they invest or what trend they think is worth looking at.
The #1 most important thing is the network. The closer you are to money, the more interconnected you are to money, the more likely you are to be part of it.
Rule #5: Talk about money
We are often taught from a young age that talking money is not ok. It's a taboo.
You shouldn't ask someone their salary.
You shouldn't ask them about their investments.
Guess who doesn't talk about money? Poor people
Guess who does? Rich people
Stop thinking about wealth and money as a taboo. Start asking your friends how much they make. Where do they invest? How much do they invest.
However, don't make the mistake of believing everything. Losses and mistakes are often not talked about (because they are painful experiences, better to talk about wins)