Money Explained in 10 Rules

Summary

• You don't need to be extremely smart to get rich. It's about the choices you make and your willingness to work hard and be patient. Don't let the fear of risks stop you from taking opportunities.

• Saving money won't make you wealthy, but it provides the security you need to take risks. First, create a safety net so you can focus on building and investing without worrying about survival.

• Making money often involves working hard for a long time without immediate rewards. You accumulate skills during this period, and eventually, you see the results. Be patient and stick with it.

• Money is attracted to excellence. Focus on being the best at what you do, and money will follow. Aim to add value and be number one in your field.

• Learn how to make money actively before trying to earn passively. Investing is a skill in itself. Master how to earn money while awake before pursuing passive income strategies.

• Money should not be your only goal. It’s a tool to create and achieve dreams. Clarify your purpose for accumulating money and focus on building something meaningful.

• There's no shame in taking any job if it helps you progress. Be willing to do the work that others might avoid. No task is beneath you when you're striving to improve your circumstances.

• Don't focus on how much others have; concentrate on your own pursuits. Envy or counting others' money diverts attention from your own growth. A good deal is when everyone involved benefits.

• Changing your beliefs won't make you richer if your actions don't align. Focus on what you do daily. Take risks, work hard, and the money will follow, regardless of your mindset.

• The money you make is linked to the difficulty of problems you solve. Aim to solve harder problems or add more value than others. Start with small problems, gain skills, and work up to solving bigger ones.

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How To Take Action

I would suggest starting by reframing your mindset about getting rich. It's not about being a genius—it's about working hard, making smart decisions, and being patient. Don’t be afraid to take opportunities because of potential risks. Remember, it often requires courage to seize them.

A good way to manage risk-taking is by establishing a safety net. Save enough to cover a few months’ living expenses. This way, you can pursue growing ventures without the constant fear of survival.

Next, be prepared to work hard for a long time without immediate rewards. Use this period to accumulate valuable skills. Remember, success often comes after a lot of unseen effort.

Focus on being excellent at what you do. If you aim to be the best in your field, money will follow. Excellence attracts opportunities and wealth.

Learn how to make active income before pursuing passive income strategies. Master the skills needed to generate income through active efforts first. Investing is a separate skill set, and becoming proficient in active income can pave the way for successful passive income in the future.

Clarify your purpose for wanting more money. Use it as a tool to fulfill meaningful goals, not as an end in itself.

Don’t be ashamed of taking any job that helps you progress. These roles can provide valuable experience and opportunities.

Lastly, focus on solving more challenging problems to increase your income. The tougher the problem, the more value you provide, and subsequently, you earn more.

Start small, solve easier problems, and progressively work up to tougher challenges. Each step builds necessary skills for bigger achievements.

Quotes

"You don't have to be smart to get rich"

– Leila Hormozi

"Saving money will not make you money, but it will give you the security to take risks"

– Leila Hormozi

"When you're good, you chase money; when you're excellent, money chases you"

– Leila Hormozi

"If money is the only goal, you will never have enough"

– Leila Hormozi

"You can't have money work for you until you know how to work for money"

– Leila Hormozi