The Algebra of Wealth

Rich is having passive income greater than your burn.)

People on a path to money focus on their earnings; people on a path to wealth also focus on their burn.)

People who tell you to follow your passion are already rich: Follow your talent.)

The upgrade from economy to premium to business to first class to private jet can seem like an investment in yourself — it’s not. The most powerful forward-looking indicator of your financial freedom is not how much you earn, but how much you save.)

Trading — distinct from “investing” — can feel like work and productivity. It’s not. It’s gambling, but without free drinks and with worse odds.)

Between 80 and 85 percent of day traders are men, and 23 percent of men who gamble become addicted (as opposed to seven percent of women). Most of us can gamble without becoming addicted, just as most of us can drink without becoming an alcoholic — but, know the risks.)

“Time is the fire in which we burn,”)

Compounding is not just a financial thing. The most important returns in life come from the compounded effects of our investments over time, whether in our finances, careers, hobbies, or relationships. Change the timescale of your life, and you change your life.)

Most of my major mistakes in investing can be distilled down to two things: not diversifying, and trading.)

**Focus** on what matters. Be a **Stoic** in the face of temptation. Use **Time** to your advantage. **Diversify** your investments.)