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  • Few ways to invest your energy

    Most people living today are millionaires. Sounds like a controversial thesis? If you count all the money spent in a lifespan of a given person on food, clothes, place to live, entertainment, the cumulative amount will exceed million dollars. In other ways, the average person can make someone else a millionaire. It is sad and thought-provoking to realize how much of your energy is spent to make other people rich. Almost none of these resources will be used to improve your standard of living. Once you understand the consequences of your behavior, you will have the motivation to change your habits.

    Let’s look at the big picture. There are four basic ways to spend money. Life necessities such as food and accommodation. Things that rust, rot and depreciate. These include things that make your life comfortable. Think about a new car, vacation, designer clothes, coffee at Starbucks. These things will bring short term satisfaction, but they won’t affect your life in long term. The third category corresponds to saving your money at a bank. In reality, you give your money to someone else to invest and spend it in your name. All three categories are good ways to make someone else wealthy.

    The fourth way to spend your money is to invest them is assets that appreciate in time. If you buy a book for $10, you will lose cash and time to read it. However, the knowledge that you gain through reading may help to make better decisions and earn money that will far exceed your initial investment. This way of spending is difficult, and only a few people will follow. Those who seek instant gratification will avoid it. Those who have a hard time spending money will avoid it.

    Where to invest your money? One of the best options is to build your own business. You can either build your dream or work for somebody to build their dream. Think how you can contribute value to the world. Find a way to deliver your product or services to customers. The Internet is one of the best ways to find new customers. You will quickly receive feedback from people assessing your offer. The task of building your website and promoting your product may seem daunting. You can use the help of search engine optimization firm that will help you to establish the online presence.

  • Build good habits

    According to Elon Musk, we are paid in direct proportion to the difficulty of the problems we can solve. Charlie Munger says that the world is not yet crazy enough place to reward a bunch of undeserving people and the best way to get what you want is to deserve what you want. These smart and accomplished people leave us a hint how to achieve success in life. Our prosperity depends on our ability to quickly assimilate and apply new information. The question remains what is the best strategy to learn.

    The two factors having a tremendous impact on our cognitive abilities are intelligence and will of power. We can’t change the former, and we can develop the latter. The good news is that to achieve world-class success in business or science; you don’t need top tier IQ. Nobel prize winners and top grade executives with IQ just below 120 are not uncommon. Instead of worrying about our intelligence we should focus on what we can control. The more time and energy we put into learning the better results, we will achieve. Conventional wisdom says ‘no pain, no gain.’

    Dr. Ericsson studied high performers among chess players, musicians, athletes, and doctors. He found out that to gain mastery in any discipline students had to spend 10,000 hours practicing their craft. Hence, the 10,000-hour rule. The key finding is that it is not enough to merely spend 10,000 hours practicing. During each training session, students must genuinely try to excel and go outside their comfort zone, beyond their current limitations. The deliberate practice is an uncomfortable experience, and only the most dedicated and motivated will persevere. It is unwise to rely solely on the raw willpower to achieve this. The better strategy is to develop good habits. Start with something small and then expand your base in small increments.