Monday, June 13, 2022

How to Stay Poor

There is an episode of Seinfeld when George realizes every choice he has ever made in life has been wrong so he resolves that from that point on he will do the opposite of what he thinks is the right thing to do. Aside from simply making a hilarious story, the "opposite" philosophy actually has a bit of truth in it.  

Charlie Munger, who has made his fortune along with peers like Warren Buffet, has a mode of decision making he calls inverse thinking. The process is if one is looking for a specific result then instead of seeking the right answer, decide, instead, how to achieve the opposite effect. For example, if one wants to be healthy, loose weight and be in good shape, it's natural to find ways of achieving those ends but the answers may come easier by asking "how can I be unhealthy".  The answer is obvious. Overeat, eat food high in refined sugar, carbohydrates, empty calories, high in cholesterol and unhealthy fat. Stay away from vegetables. Don't get any exercise, drink lots of alcohol and no water. 

Now that we know the answer to our question, just do the opposite. 

Dan Miller, my mentor, brought the subject up, by asking "why are you still poor?" and also listed 27 ways to stay poor. "If you want to be poor and stay that way here's how..." and he proceeded to list them. I wont include everything here, today, but more notable among which I am guilty are:
  • start tomorrow
  • read books but do nothing
  • blame the circumstances
  • value the opinion of others more than my own
  • tolerate mediocrity
  • avoid working on what matters most
  • do what everyone else is doing
  • believe what others think about me more than what I do
  • believe I'm always right
There are many more he listed but in my experience these are some that stand out. Now, I must do the opposite.

 

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