Hi team,
happy you’re here today! This is #16 of dst. Let’s get right into it.
the question
If you’re reading this, chances are that you strive for self-actualization.
You want to escape the rat race and rise above current circumstances.
I get it – I do too! The climb is a lot of fun.
Within that scope, sooner or later, you need to find a way to wealth. Wealth in a sense that it does buy you freedom, above anything else.
Money will solve your money problems, which is a big part of actually being free and actually finding a way to actualize what you want out of life.
So today’s main question is:
What’s the number one vehicle to get to freedom-enabling wealth?
the answer
I said “number one” but actually, I believe there is no ranking to that.
There is only one vehicle.
It’s ownership.
Wealth is created by those who understand ownership vs. wage work.
You’re never going to build wealth by renting out your time.
What you want is a disconnection between inputs and outputs.
What does ownership mean?
You need to own a part of a commercial system, a machine, or, simply put in plain English, a business.
Don’t think of a business as a come-together of wageworkers.
Think of a business as an entity, that multiplies inputs exponentially by applying leverage.
Leverage in the form of capital, product, or people.
Here is a little overview of what I believe actual leverage is:
capital
- money used to buy equity & assets (stocks, crypto, businesses, etc.)
- money used to multiply the force of a decision (as of: “we’re going to run this advertisement, let’s make it seen by everyone”)
product
- software built and sold with no cost of replication
- media created and sold with no cost of replication
people
- employees or contractors working for you
- a clear reputation and brand
No matter which decision you’re about to make – it should always optimize for leverage.
Because that is the actual only way to freedom and independence.
You can find your maximum point of leverage and act on it.
Here is how:
your action step
Look at the types of leverage and determine where can you apply force, even if it’s little:
- Capital: Might be an extra €15 a month invested in assets.
- Brand: Might be you starting to publish content around your journey and interests.
- Product: Might be you building a replicable product based on your core skills.
Compound interest really applies here. Don’t think it’s worthless just because you’re starting small.
a philosophical joke to make you laugh
(disclaimer: it won’t be funnier next time.)
Why do Marxists only ever drink horrible tea?
Because all proper tea is theft.
note
I’m struggling to gain momentum with these concepts.
I really believe that if you invest deeply into maximizing leverage early on, you’ll reap exponential rewards later on.
It needs constant reflection over where you allocate your time and if your activities still fuel these compounding domains and a strong focus on consistency.
Easier said than done.
Just be sure to adjust & optimize regularly.
love,
Niels
PS: H/T to @naval