This article outlines 20 "cheat codes" for success, gleaned from experiences ranging from homelessness to becoming a multi-millionaire entrepreneur. These tips cover finance, career, and personal well-being.
Investing and Finance
Cheat Code 1: Saving is Not Investing
The first cheat code emphasizes that saving alone isn't enough; investing is crucial. Putting $5,000 annually into an S&P 500 index fund, starting in your 20s, could yield $1.4 million by retirement due to compound growth.
- Key Takeaways: Don't try to time or beat the market. Stick to index funds and stay invested.
Cheat Code 8: Have an Emergency Fund
An emergency fund is vital for unexpected events. Aim to save 3-6 months' worth of expenses. This provides a safety net during job loss or medical emergencies.
Cheat Code 9: Forming Your Own FBI (Financial Bureau of Investigation)
Track and categorize your spending to control your finances.
- The Four Es: Emergency, Essentials, Equity, and Enjoyment. Fund enjoyment after the first three are covered. Use apps to track expenses.
Cheat Code 10: Forget the American Dream (Unless You Want American Debt)
Avoid chasing status symbols and unnecessary debt. Buying a home in your 20s isn't always necessary, nor is accumulating credit card debt for designer brands. Wealth is about what you keep, not what you buy.
Cheat Code 11: Get Financially Literate
Financial literacy is a crucial investment. Understand compounding, credit scores, and taxes. These principles protect you from poor decisions.
- Recommended Reading: The Psychology of Money and The Algebra of Wealth.
Cheat Code 12: Automate Every Financial Transaction
Automate savings and investments before your paycheck arrives. Automate bill payments to avoid late fees. Use technology to control discretionary spending.
Career and Skills
Cheat Code 2: Stop Following Your Passion
Passion doesn't always lead to success. Focus on building passion by becoming great at something. Creative pursuits may not always pay the bills.
Cheat Code 3: Practice, Practice, Practice
Persistence is key. Excellence is built through consistent practice. Find skills that can be monetized and dedicate time to honing them.
Cheat Code 4: Treat Your Career Like an Investment Portfolio
View your career as a collection of skills and connections that compound over time. Even if you start at the bottom, focus on learning and building connections.
Cheat Code 5: Move Where the Opportunities Are
Relocate to areas where your career can thrive. Being physically present allows you to build networks and collaborate effectively. Remote work has its place but doesn't replace the skills gained from face-to-face interaction.
Cheat Code 6: Understand the Difference Between Equity and Salary
The top 1% chase equity, not just salaries. Equity offers unlimited upside. An ownership mindset changes how you approach your work. Aim to get equity whenever possible.
Cheat Code 7: Humble Yourself and Get a Mentor
Find mentors who are invested in you. Mentorship can accelerate your career trajectory. Real mentors are more valuable than paid executive coaches.
- Recommended Reading: Trillion Dollar Coach (about Bill Campbell).
Mindset and Personal Development
Cheat Code 13: Go Analog
Reduce "doom scrolling." Detoxing from social media can improve attention span and cognitive function. Deep reading fosters critical thinking and expands vocabulary.
Cheat Code 14: Think of Failure as Your Friend
Failure is a teacher, not a tormentor. Learn from your mistakes to prepare for success.
Cheat Code 15: Don't Be Afraid to Ask for Help
Success is a team sport. Overcome fear of rejection and seek support from others. Surround yourself with inspiring and challenging individuals.
Cheat Code 16: Don't Play the Victim Card
Avoid holding grudges. Business is never personal. Focus on moving forward and maintaining relationships, even with those who have fired you.
Cheat Code 17: The Most Important Decision
The most important decision you will make is who you choose to partner with. Choose a partner who enhances your life and with whom you can navigate challenges with love and respect. Rely on the 'system two' brain, and rational thinking, when falling in love.
Cheat Code 18: Forgive Yourself for Your Past
Forgiveness is for yourself, not others. Acknowledge and release past traumas. Don't let your past define you.
Cheat Code 19: True Value is About What You Bring to Others
Your success is the echo of the lives you improve. Focus on making a positive impact on others.
Cheat Code 20: Happiness Equation
Happiness is connected to what you own and what you desire (H = O/D). Manage your desires to find happiness. When your desires approach zero, your happiness goes to infinity.
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