You will not get rich renting out your hours. You will get rich by building something that keeps working when you stop. A business, a product, a brand, a piece of software, a body of work, a network — an asset. The richest people in the world do not have unusual salaries; they have unusual leverage. The simplest way to think about wealth is this: specific knowledge, applied with judgment, compounded by leverage, over a long time.
You can move every variable. Most people only try to lower costs. Builders push value and reach upward, relentlessly.
- Financial — cash you can deploy.
- Human — what you know and can do.
- Social — who trusts and vouches for you.
A young founder is usually rich in two, poor in one.
The Four Forms of Leverage
Labor, capital, code, and media. The first two need permission — you must convince people to give you employees or money. The last two are permissionless — anyone can write software, anyone can publish. Modern wealth bends overwhelmingly toward the permissionless forms.
"Play long-term games with long-term people. All returns in life — wealth, relationships, knowledge — come from compound interest."