Right now the general public can only invest in businesses listed on the stock exchange. Sam’s right: it’s easier to buy an NFT than purchase Amazon stock. What crypto did is made it easy for anybody to invest money in anything they want. You only think that’s okay if you’re a privileged white dude. They think slow transfers of money from one side of the world to another, and 31% of the global population without a bank account is okay. Many people do not understand the urgency to fix our financial system. It is bad for society that it’s easier to invest millions of dollars into an NFT than a startup. - Sam Altman, Y-Combinator Many people don’t know this.Ĭheat code: Own financial assets to avoid the effects of asset inflation. The point: bank loans also print money out of thin air. So $1 billion becomes $10 billion of debt. The bank’s borrowers can then lend 90% of that. If $1 billion dollars is given out to the banks, they can lend out $900 million of it. Many people don’t understand that when money is created out of thin air, most of it, first goes to banks. That’s why the US stock market is at record highs after one of the worst events in history for the global economy. The rich put that money into financial assets like stocks. If you don’t, it’s worth understanding it.Īll of this excess money ends up in the financial system, mostly with the rich. Most of you already understand this idea. See, since March of 2020 40% of all US dollars in history were created out of thin air. The hidden inflation Naval talks about is asset inflation. People think I love stocks or crypto because I’m trying to be cool or look smart. If your income is coming from labor rather than assets, you’re being decimated by hidden inflation - Naval Ravikant When you want to escape you can’t because the stuff you bought has gone down in value, making it impossible to recoup the money you spent and to remove the shackles of debt.Ĭheat code: if your income increases, don’t spend more. That leads to a feeling of being trapped. If you miss a few paychecks you can’t meet your expenses. Therefore, you become a slave to your income. Overspending forces your income to never rise. We talk a lot about social media or drug addiction, but we rarely talk about spending addiction that keeps people poor.Īuthor James Clear gives this advice: “Fix overspending before it becomes a lifestyle.” It’s not that their job pays them poorly. Many of them end up making a lot of money because their skills are crucial for society to function.Ī lot of them work extremely hard though. Their income is now a slave to debt because it’s hard to outearn bad spending.Īs much as I hate college it is required for people like doctors, lawyers, and engineers. Then bought a $900k home, $100k Porsche, $70k Tesla, and $400k beach home There are brilliant surgeons, lawyers, engineers who still don’t sleep well at night because they took their $300,000+ salary People smarter than me reframed my basic ideas about money. Research says “When that frame is shifted, the meaning changes, and thinking and behavior often shift along with it.” That frame determines your point of view. Cognitive reframing, as it’s known, is how we view an area of our life through a frame.
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