Wednesday, March 17, 2010

Personal Development for Smart People: Money

This article is part of my series on Personal Development for Smart People. If you are new here I recommend you to first read my introduction to the book.

My second post with my notes from the second part of the book is all about money.


  • intro
    • no special rules for money, it obeys the principles of truth, love and power
  • & truth
    • money is a social credit, allowing you to extract a certain amount of social value whenever you spent it
    • most common way to earn money is to sell your time
    • the greater your ability to deliver social value, the greater your earning potential becomes
    • not absolute value but social value
    • other way to earn money is to build a system that earns money for you
  • & love
    • 2 basic ways to earn money
      • make a meaningful social contribution, and receive payment commensurate with the social value of your contribution
      • take advantage of market inefficiencies to extract money without contributing any substantial value
    • moocher mind-set
      • extracting more social value than you're contributing
      • moocher mind-set suggests you can always rely on others to pick up your slack
    • contributor mind-set
      • best way to make money is to provide fair value in exchange
      • income depends on the social value of your work, not the personal value
      • wealth can be created from ideas and actions
  • & power
    • you're responsible for your own financial situation
    • don't treat money as end unto itself
    • if you want something badly enough, target it directly
    • the value of money lies in its exchange
  • & oneness
    • best way to earn money is through honest contribution
    • work within the area of overlap between your personal values and social values
    • do what you love while creating value for others
    • social and personal values fluctuate over time, so be prepared to adapt
    • simplest way to create value for others is by sharing what you love to do
    • not easy, but worth the effort
    • fairness
      • fair compensation for the value you produce
      • fairness is better than either greed or self-sacrifice
      • unfair compensation practices have a dehumanizing effect
  • & authority
    • in order to generate significant value, we develop our talents and skills
    • to create substantial value you must commit to being a lifelong student
    • be sure that your self-education is practical
    • to earn money more easily strive to become an authority in the area of overlap between your personal interest and social demand
  • & courage
    • if you know you can contribute genuine value, summon the courage to ask for fair compensation in exchange
    • have the courage to put human beings first, money second
    • never chase soulless profits
  • & intelligence
    • intelligence is the ultimate source of wealth
    • go after the big opportunities, the ones that inspire and challenge you to grow
    • it's intelligent to give more than your receive, this generates growth
  • conclusion
    • best path to wealth is to release your fear of being poor

Next post in this series is about Health.

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