What is money?
Forget everything you believe about money.
Reset the system.
Here’s the best definition:
Money is just a storage of value.
Credits you can use later for doing something good for other people.
You give value to someone.
They give you credits for this value that you can use for whatever you want.
It’s that simple.
Money = storage of value.
This eliminates all the fake beliefs you’ve developed during your life, especially if you were born poor.
The 3 things to spend your money on (in this order):
1) Investments — things that give you more money
Think money trees.
You plant them with the money you have and they give you more in the future.
There are two types of investments:
a) Assets — they directly give you money through appreciation or cash flow.
For example:
• Stocks
• Crypto
• Bonds
• Real estate
• Businesses
They are great if you already have some money, but when you are starting out the returns are too small to change anything.
If your net worth is higher than $50,000, that’s when you can start looking into them.
Before that it’s just a waste of your time.
Note: don’t pick crypto/real estate because it’s trendy — pick one asset class you can study and stick with for a decade.
b) You — skills that make you more valuable and increase your income.
For example:
• Books
• Courses
• Coaching
• Certifications
This is the bucket where I would put the vast majority of my money if I were starting from zero or negative.
The best way to build wealth is by skyrocketing your income — i.e., making more money.
How?
By providing more value to people
(remember: money is storage of value → give more value = get more money).
Invest in education like crazy until your income is above $5,000/month, then pick one asset class you like and start pouring money into it.
2) Experiences - things that you can take with you forever (usually one time events)
Think trips, events, concerts, restaurants.
They give you 4 things:
1) Perspective - you start seeing the world around you differently.
Small town thinking is real and if you haven’t experienced a different way of life it will keep you stuck.
2) Abundance mindset - belief that there is more than enough in the world for everyone.
This helps you become the type of person who attracts the things you want.
3) Stories and lessons - not the ones learned passively, but actively.
I can show you a video of flying a plane;getting on one and experiencing a flight is a totally different.
4) Personality - people who don’t experience new things often come across as boring and weird(trust me, I’ve been there.)
3) Things your hear soul/desires
Think luxuries — things that you want.
A nice apartment/house, car, clothes, technology, and whatever else comes to your mind.
This is where you reward yourself for your effort and build your self image (the way you see yourself)
This is the magic loop that we are creating:
Work —> earn money > spend —> feel successful/motivated—> work better—> repeat
Have a first class attitude in the things you buy.
You deserve the best — don’t let other people tell you otherwise.
You want that watch/purse/phone/Porsche/TV?
Buy it.
Don’t become someone who has a string of miserable successes(trust me, I’ve also been there…)
The only thing you have is the present moment, so enjoy it while it lasts.
You can’t take money with you when you die.
Stay sharp,
Adrian
Words I Like:
“Take a simple idea and take it seriously.”
― Charlie Munger
