We are expected to thrive in an unknowable future. Prepare for the worst. Your good times do not need any preparation but bad times do. Disaster can come at anytime. It can take everything away from you. Prepare yourself. Buy insurance. Have emergency funds for rainy days. Create a corpus for retirement. Forget everything, CREATE WEALTH.
Own Very Little
When the goodwill in the books of a Company is measured for impairment, there is a concept of measuring the cushion between the fair value and the book value of the Company. The larger the cushion, the lower the chances of any impairment. We need a similar cushion in our financial lives as well. We can increase the cushion by owning as less as possible. Wealth, after all, is what you do not see. It’s the fancy car not bought, the luxury holiday not taken and the latest iPhone not purchased.
Make yourself expensive. Have specific knowledge. Would you rather have 1000 clients paying you $100 each or 100 clients paying you $1,000 each. Focus on the top 1% who are willing to do anything to learn from you. You will have more time. To make more money.