“Risk is what you don’t see”
I’d never heard this story until Morgan told it.
Harry Houdini is one of the greatest illusionists to ever live. On a strange day in 1926 he was relaxing in his dressing room.
A group of students came to visit him. Seems innocent.
One of the students asked if it was true he could resist hard blows to the abdomen. Harmless question. Then out of nowhere the little sh*t starts punching Houdini in the abdomen.
Houdini wasn’t prepared.
The poor illusionist couldn’t take it anymore and signaled for the innocent punches to stop.
Houdini comments afterwards, according to the book The Edge of Unknown, that if he could prepare or if he’d known how hard the punches were going to be, he would have stood up from the couch.
But he couldn’t prepare.
In his famous acts there was loads of preparation. During this unexpected event there was none.
24 hours later Houdini suffered abdominal pain. I’ve had it, and it’s not pleasant. Shortly after Houdini’s appendix ruptured. Apparently, because of the punches he copped from the student’s innocent punches.
Houdini died not long after. Not from his illusionist act full of risk, but from a smart ass student pulling a prank on him.
Kind of fitting, don’t you think?
Houdini could do all sorts of risky stuff like handcuff himself and get buried deep underground.
Yet a school kid’s punch ended his life.
This is not how a famous illusionist should go out. Ideally, he would have died in a death-defying display of pushing the boundaries of humanity for applause.
Risk is hard to measure.
It’s often something you don’t see coming. Real risks are complicated. I mean, who would have guessed a bat virus would close the world down? Not me, ever. This philosophy applies to right now.
Since 2008 we’ve loaded up the financial system with gunpowder and it hasn’t exploded. We’ve created trillions of dollars out of nowhere.
Now 8% inflation is ripping our faces off.
The risk is there, you just can’t see it. So it pays not to be greedy during these strange times.
Don’t sacrifice the future for today
Gas prices have gone through the roof since war broke out. A mate of mine works for a large Buy Now Pay Later company.
Me: “So, what’s next? Buy now pay later at the gas pump?”
Mate: “Actually, yes. We’re about to launch it. It’s going to help a lot of people.”
*Screams into a pillow*
I couldn’t stand still. Why is the solution to every problem to get more debt? If all you do is load up on debt, you’re sacrificing your bright future for a dopamine hit today. It’s unhealthy. The smart thing to do is lower expenses.
Everyone in the finance industry (including me) knows buy now pay later is a scam. The credit score of these shoppers is terrible. It is a way to get people into more debt without a proper application form.
Buy now pay later is a credit card without due diligence. Our financial system is now built on it.
Less debt equals less regrets in the future.
“There’s nothing wrong with wealth, but for many, they lose themselves in the process. It’s not wealth that defines you…it’s character.”
This philosophy comes from John’s dad.
He didn’t work in finance but he did live the good life, according to John.
It’s stupidly easy to get lost playing wealth games. Before you know it, the digits on an internet banking app start to drive your behavior.
How do I know?
As a 26 year old with a business that employed more than 100 people, I lost my freaking mind. I became power-hungry. My ego went out of control. I told employees to kiss my feet. No joke.
My bank account exploded while my character imploded.
It ended in deep, dark, mental illness. It took years to recover — all because of stupid money.
A good gauge of character is “was I kind to everybody I met today?”
If not, you may have already entered the jackass life.
It’s never too late to change. Do the things decent humans do: smile, be kind, be generous, show love not hate, teach what you’ve learned.
“To die rich is to die disgraced”
“The Giving Pledge” is one of the greatest inventions in history. It’s where billionaires donate the majority of their wealth before they die.
Leaders people love to hate on — like Bill Gates, Warren Buffett, Mark Zuckerberg (guilty your honor!), and Richard Branson — are all part of it.
Yes, you could say these people are selfish. But at least they’ve learned that money given to good causes is more important than their ego.
I tell my parents the same: “Die with no money left in your bank account. Spend it on whatever makes you happy.”
Avoid paying tax twice
Inflation is the invisible thief that discriminately targets the poor and uneducated — Anthony Pompliano
Inflation is a second tax. It’s currently 8% in the US if you believe the government, and 15%+ if you use a calculator and can do 5th grade math.
Do a little life math. It’ll stop you trading time for money, forever.
“Never focus on money”
*Spends 60 hours a week away from family*
That’s what the critics say. They trash my views on money. They tell you not to make money online. Okay…
Then these same drongos go to a job every day and work crazy 60-hour weeks to earn money. This is time they spend awayyyyy from their family.
Family is the most important thing, they say. Yet they shame making money online and take forced holidays away from their one true love. Weird.
Philosophy: learn how to make money online, so you don’t spend 60 hours a week away from your family for the rest of your life and miss your kids growing up.
“Linearity” explains why most never get wealthy
You can ignore all the other money philosophies in this article if you want. But don’t ignore this final one, or pay the price.
Traditional jobs allow you to get a fixed amount of money per hour worked. This means your wealth grows linearly over time.
When you understand compounding, passive income and leverage created online, your wealth grows exponentially. That means for the same amount of work over time, the amount of money you make grows more rapidly.
Making money linearly is why most work their entire lives and trade time for money. Once you understand how to make money exponentially, your entire life changes. I’m not the smartest cookie. It took me years to understand.
Don’t be a dumbass like me.
Get a financial education. Learn how to make money online. Unlock leverage. Earn passive income. Use money to make money, not time to make money.
This article is for informational purposes only, it should not be considered financial, tax or legal advice. Consult a financial professional before making any major financial decisions.