Building Wealth is a Skill

Today's Newsletter:

• Quote from Larry Ellison

• Skills to Build Wealth

• A Money Question

Quote

“I have had all the disadvantages required for success.” - Larry Ellison

Larry Ellison is the founder of Oracle and a billionaire. I chose this quote because it epitomizes the concept we are going to discuss today. Building wealth requires skills. It does not require a privileged upbringing, a head start in life, or genius level IQ.

Skills to Build Wealth

Building wealth is a skill, make no mistake. Yes, everyone is starting from a different point but what you do with that starting point is fully in your control.

Understanding how to build wealth is playing the right games, with the right people, at the right time.

Take this story ~ A dad gives his son an old watch he found. He tells the son to take the watch to a few stores to determine the value of it. The first store the son takes the watch to is a traditional retailer. “We could give a $15 bucks for it but it really has no value.” Disappointed, the son leaves the store thinking the watch has no value. The son then takes the watch to a second store, a pawn shop. “It is old but it has no real value, we could give you $20 bucks for it.” The son comes home to his dad frustrated wondering why he is having him spend his time trying to make a few bucks on this watch. His dad tells him to take it to one more store, a museum. Begrudgingly, the son takes the watch to the museum. The curator shocked at the timepiece says, “We will offer $100,000. This is an antique and something we have been looking to add to our collection.” Shocked the son hurries home to tell his dad the good news.  

The son found the right game, with the right person, at the right time. Building wealth is finding a way to harness that for you. Today, we are going to talk about five skills to hone in order to build wealth.

1) Create Urgency

The speed at which you move matters. Most people know what to do but take years to start. We all have a friend who has been talking about “that thing” for the past several years. Chances are in a few more years, they will still be talking about it with little action to show for it. Instead, learn to have a bias for action.

•Fail

•Iterate

•Try Again

The quickest way to increase your value is to move with speed.

2) The Game You Play

What game are you uniquely positioned to play? Building wealth is about playing one game well not every game. Take Lionel Messi, he is arguably the best soccer player in the world. Yet, if Messi was to play basketball instead of soccer, he would struggle to get picked at a local pickup game. An incredible athlete but also one who is playing the right game.

•Positioned to win

•Best in the world at

•Drive the economic engine

Find your game.

3) Master Networking

Building a world-class network is one of the most important skills for building wealth. Yet, 99% of people go about this all wrong. Consider you are told to paint a picture of what you want your life to look like in 5 years. Whatever you paint will turn into your reality. Would you paint a generic picture or one with painstaking detail? Networking at a high level is the same way, paint with detail.

Level 1 networking: "Let me pick your brain."

Level 2 networking: "This might help you solve that problem."

Level 3 networking: "You know that problem you have, I solved it."

Solve problems for the people you want to connect with and watch your growth take off.

4) Understand Leverage

Leverage is the ability to do more with less. If you are anything like me, this morning when you woke up you made some coffee. It took me less than 5 minutes but only due to leverage. I leveraged my money to buy coffee beans, a coffee pot, and a mug. Without that, a cup of coffee would have meant months of growing the coffee bean, harvesting it, and then making coffee. We use leverage in nearly everything in life, the key is understanding how to use it in your life.

•Money

•People

•Distribution

The quickest way to wealth is to understand leverage. The quickest way to lose wealth is to misuse leverage. Understand it first, and use it second.

5) Learn to Consume Information

The top one percent have a thirst for learning. The world's greatest ideas are prevalidated thoughts with small tweaks based on someone’s own life experience. The quickest way to be an idea machine is through consuming information.

•Reading books

•Asking questions

•Listening to podcasts

Consuming it is just the first step, you have to learn what to do with it.

Building wealth is about creating an infinite loop or said another way, it is about creating skills that feed each other. If you create urgency you will find the right game to play. If you find the right game to play you will build a network around it. If you build a network around it you will learn to leverage it. If you learn to leverage it you will be constantly consuming new information. Master these skills and watch your personal flywheel start spinning.

A Money Question

What game are you uniquely positioned to win?

I love this question because you can take it in several different directions. You could focus on a game that your current skills align with but there is little passion behind it. You could focus on a game that your current passions align with but there are few current skills to back it up. No matter which is your starting point, you can build the skills to win.

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I help athletes, entrepreneurs, and executives pay less in taxes, coordinate their financial lives, and invest for the long run.

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Until Next Time, My Friends

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