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Wealth & Personal Finance

The Last Safe InvestmentI picked up “The Last Safe Investment”  by Bryan Franklin, Michael Ellsberg from the library, thinking it would provide some insight into growing wealth. I stopped reading on page 118 (I had to return the book). It sums up to this: spend systematically so it can provide other value to your life and work on your tribe/network/community because that’s how you accumulate a different type of wealth.

INTRODUCTION:
Consuming vs investing
* John taking friends out to action movie, buys soda and popcorn
* Jane takes coworkers out to business-related movie that someone mentioned, buys water
* They are both not expecting anything back from their group and just want to have a good time

The book explains (exaggerates for the point) that Jane didn’t just spend on Entertainment, she also contributed to a bunch of things that John didn’t. I can’t say I agree with this completely but here is the impact (p 17):
— health. Water is good for everyone vs (John) sugar makes people bounce off walls
— relationships. Respect what others care about vs (John) don’t see how he didn’t invest in this too since his friends like action movies as well
— career.  Contribution to get involved in matters related to work vs (John) doesn’t impact his career directly (unless you can count on his friends’ network for that future role, which I think is pretty likely too)
— purpose.  Enjoy contributing time to each other because it makes their lives more purposeful vs (John) I can see this applying as well… what if their purpose was to contribute to the laughter in his life??
— provide value. Discussion after the movie so everyone is sharing their ideas vs (John) now everyone is more in-the-know about pop culture

Investing = Spend value on other contexts of your life, outside the original context

True Wealth Discipline

  1. Spend systematically – make every expense count for something more
  2. Increase your value to others – see how you can help others with your skills or knowledge, so they will think of you in future when you need something
  3. Improve your happiness exchange rate (more below)

True Wealth Asset

  1. Adviser Equity – contributing your knowledge to others
  2. Tribe – your community and close friends
  3. Savings – “the money you risk (in the form of investing in yourself… should be in service of something that will improve you, further your purpose, as well as increase your income” Intro, p. 41

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