Ch. 1. The Wealth Building Formula

• Step 1: Earn more than you spend.
• Step 2: Invest the surplus.
• Step 3: Protect your money from loss.
• Step 4: Repeat these steps.

Ch. 2. How To Accelerate Your Wealth Creation

Bottom line

Shift your focus to increasing the income. You can only cut spending so much.

Brian offers his mistakes as an opportunity to learn from them and not make the same mistakes.

Mistake Chasing Money

Brian tried chasing after money in stock market - thinking that he can get rich off of making good trades. That turned into a second job that was not really investing, but speculating rather. He wasted a lot of time and energy since it did not pay off in the end.

This is what many financially literate people say. All you can do is make the average the market makes. Beating the market is done by 1% of financial gurus.

Round #1 - Penny Stocks

Made a lot by pure luck. He thought he was smart until he lost all he made.

Round #2 - Stock Options

When turned $10,000 into $60,000 using call options, Brian continued and due to a scandal in a company he invested in, he lost most of his money. No amount of research can prepare you for those rare events.

Round 3 - Crypto

Brian sold crypto when gains when 10x. However, crypte then went to 100x. Lesson is that it is nearly impossible to time the market.

Reflection

Speculating did not help Brian make real progress toward building wealth. It was mentally exhausting and very risky.

The Pivot

Brian then focused on picking value stocks, diversifying, and aiming for steady growth. For a few years he even beat the market with 20% of increaso of his value. However, if your investments are low $40,000 in his case, that is only $8,000 per year. He would have been better off just finding a side job and making more money. Therefore, the problem was THE SCALE.

Brian focused on increasing the income, so he could invest more and truly benefit from compounding.

This became his new focus. He stopped seeing investing as primary wealth-building strategy and started viewing it as a part of a bigger plan. The more he earned, the more he could invest. Only then investing returns would make a real difference.

Brian’s Advide For Beginners

1. Prioritize learning the basics of stock market investing.
2. No need to chase passive incomes right now.
3. Find a well diversified index fund or EFT to invest in so you don’t have to worry about buying or selling (just keep putting the money there) and focus on growing your income.

Practical Strategies To Boost Your Income

Increase your compensation for your skills:

• Employees: Climb the corporate ladder and negotiate raises.
• Self-employed: Raise your prices to reflect your value.

Take on additional work:

• Employees: Consider overtime, a part-time job, or a side hustle.
• Self-employed: Extend hours or improve processes to increase output.

Seek a higher paying opportunity:

• Employees: Switch companies or move into a higher-paying industry.
• Self-employed: Pivot to a product or service with higher earning potential.

Commit To Your Field And Master It

To significantly increase your income, commit to one field and become an expoer. Reaching the top of your field allows you to command a higher level of compensation.

Mastery doesn’t limit you; it opens doors

You can leverage you experise to branch into new areas, furhter boosting your income.

Master your field, and the market will reward you.

Comes back to the saying:

Be good at what you do and money will find you.

How To Become an Expert

The key factors:

1. The effort you’re willing to put in.
2. The time you dedicate to mastering your craft.

Effort:

Make the most out of your time at work. Ask for new opportunities and try to gain more skills.

The effort you put in is entirely up to you - that drive must come from within.

That is why it is crucial to choose a field or job you enjoy or at least don’t mind. When you’re in an area that plays to your strengths, putting in the effort becomes easier. But if you are stuck in a job that makes you miserable, it will be hard to stay motivated.

Time:

The more years of experience youo have in a certain field, the more opportunities you will have in that field and higher-profile assignments.

The time you spend in your field is an investment, and how you use that time determines your success. If you want to increase your income, becoming an expert is key. Expertise takes time and effort, so it’s important to choose a field you can commit to for the long term. As your experience grows, so will your value, and that will be reflected in your earnings.

Switching Careers

Switching careers too often will leave you with beeing a mediocre in all the fields you tried out while if you stick with the field you started with and become an expert, you will be compensated much more than if you stayed mediocre in some other field.

If you want to change your field, choose carefully and choose EARLY. Choose a field where top performers earn an income you;d be satisfied with and that you enjoy or at least don’t mind.

The Missing Link: Visibility And Income Growth

People need to know you exist and understand the value you bring. Without visibility, your expertise goes unnoticed and you miss out on hte financial rewards you deserve.

Practical steps to get noticed and show the value of your expertise:

1. Leverage online platforms and social media - show your skills online.
2. Network within your industry - attend conferences, webinars, or emetups to interact with peers
3. Ask for recommendations

Don’t just be the best - make sure people know it.

Ch. 3. How To Achieve Consistent Wealth Growth

Step 1: Track Your Money

You need to know 2 things:

1. How much you make
2. How much you’re spending

Basically, do personal accounting on a spreadsheet or an app.

Step 2: Analyze Your Results

If your spreadsheet shows you are making money, you are on a good path.

Step 3: Make Improvements

If your spreadsheet shows you are not building wealth, then you must make changes. Building wealth is a marathon and not a sprint. Start making changes to cut expenses, even if those are small (more often manageable) changes.

In summary, the goal is to be aware of your own spending and know where your money goes. Be mindful when spending and make good decisions.

Ch. 4. How To Invest Properly

To build wealth you must put money to work. While the idea of quick gains in investing can be tempting, it is crucial to approach investing with a long-term, defensive mindset.

The Proper Way To Invest

To accelerate your wealth-building, the best strategy is simple:

increase your income and invest more money.

This ensures steady growth without jeopardizing your financial security. The more money you can invest safely, the faster your wealth will compound over time.

Never put your financial future at risk by chasing risky high returns. Instead, focus on reliable, conservative investments that offer consistent growth over time.

Beware of Speculative Investments

Relying on speculation to build wealth is like depending on winning the lottery to achieve financial freedom.

It is okay to engage in speculative investments occasionally, but do so in moderation. If you decide to speculate, only use a small portion of your portfolio - that would be money you can afford to lose without jeopardizing your financial goals.

The Power of Compound Growth

The power of compound growth is immense. It is slow at the beginning, but then it gets really exciting!

Consider an example where you double your amount of money every day for 30 days while starting with a penny:

• Day 1: $0.01
• Day 2: $0.02
• Day 3: $0.04
• Day 4: $0.08
• Day 5: $0.16
• Day 6: $0.32
• Day 7: $0.64
• Day 8: $1.28
• Day 9: $2.56
• Day 10: $5.12
• Day 11: $10.24
• Day 12: $20.48
• Day 13: $40.96
• Day 14: $81.92
• Day 15: $163.84
• Day 16: $327.68
• Day 17: $655.36
• Day 18: $1,310.72
• Day 19: $2,621.44
• Day 20: $5,242.88
• Day 21: $10,485.76
• Day 22: $20,971.52
• Day 23: $41,943.04
• Day 24: $83,886.08
• Day 25: $167,772.16
• Day 26: $335,544.32
• Day 27: $671,088.64
• Day 28: $1,342,177.28
• Day 29: $2,684,354.56
• Day 30: $5,368,709.12

Time is your greatest ally in harnessing the power of compounding growth. The earlier you start investing, the more time your money has to grow.

Treat your investments as off-limits until you reach financial freedom.

Conservative Investment Options

Index Funds and ETFs

These track market indexes, such as the S&P 500, offering diversification and reduced risk. For example, investing in an S&P 500 index fund means you are buying a broad mix of top US companies, which lowers risk while supporting long-term growth.

Bonds

Bonds are fixed-income investments where you lend money to a corporation or government in exchange for interest payments. They typically offer more safety than stocks but with lower returns.

Real Estate

Thoughtful investing in real estate can provide both rental income and property appreciation. Whether residential or commercial, real estate can be a stable income source.

Ch. 5. Escape The Dept Trap

If in dept, it comes down to paying the dept off as soon as possible. First pay the highest interest off.

Is All Debt Bad?

No (with a risk).

Example 1:

If you can borrow money at 3% interest rate and invest it into an opportunity that yields 8% profit, you are gaining 5%.

Example 2:

What if you borrow money at 3% rate and invest in stock market that can return on average 8-12%?

Ultimately, for debt not to be bad, there is a risk involved of possibly not getting expected returns on your investment and having to pay the debt out of pocket.

Beware of Lifestyle Inflation

When you get a raise or start making more money some other way, do not fall into a trap by increasing your spending. It is ok to reward yourself once or twice, but if you increase your expenses and you are making more money, ultimatelly you are saving the same amount of money as before the raise. It comes down to maintaining your expences even when you get a raise in order to save more and get to the financial freedom faster.

Ch. 6. Protect Your Wealth From Setbacks

Setbacks are a natural part of the building wealth journey. What truly matters is how you prepare for and respond to them, ensuring they don’t derail your progress.

Stock Market Crashes Are Inevitable

Stay calm, be diversified, and avoid letting short-term anxiety in case of a market crash guide your decisions. Historically, the stock market has always recovered from crashes, rewarding those who maintain discipline.

The Danger Of Following Hot Tips

ALWAYS verify the investment tips before diving in. Even when the advice comes from trusted sources like friends, family, or financial advisors, it’s essential to do your own research. Those offering the tips may have good intentions, but can still be wrong, and ultimately, you are the one that bears the consequences.

The Hidden Risk Of Complexity

When faced with complex investments, if you do not fully understand the risks, it’s best not to proceed. Simplicity often protects wealth more effectively than complexity.

Most people make costly mistakes chasing bigger returns through investments they do not fully understand. Simple investments, like index funds or real estate, may not seem as exciting, but they come with significantly less risk and fewer chances for things to go wrong.

The Hidden Danger of Debt

Using dept can amplify your gains, but it also increases the risk of significant losses when conditions take a turn for the worse. I can be very bad. Do not undermine the risks and always investigate worse case scenario.

The Importance Of Insurance And Preparedness

Do not cut corners on insurance. Take time to review the policies to make sure you have the coverage you need. If you do not have insurance, one disaster can be catastrophic for your finances.

Avoid Landing Money

Lending money to friends or family may feel like the right thing to do, but often backfires both financially and emotionally.

If they do not return the money on time, you will start asking for it and eventually your relationship with that person will possibly be ruined.

When friends ask for money, offer what you can as a gift, not a loan. If they don’t accept, that is their choice. By giving instead of lending, you avoid the stress of unpaid debts and preserve the relationship.

Overcoming Setbacks On Your Wealth Journey

Setbacks are a natural part of the wealth-building process.

What matters is how well-prepared and resilient you are when challenges arise.

Resilience means having the right mindset and strategies to recover when adversity strikes. Building wealth is not about a smooth, uninterrupted path. It’s about navigating the inevitable obstacles with preparation and a long-term perspective.

Ch. 7. Capitalize On Wealth Opportunities

Stock Market Crashes

You should not be scared of a market crash. Rather, you should be ready to invest as this is a golden opportunity to buy high-quality stocks at a discount.

You should not go all-in, but invest more heavily. Therefore, you need to maintain a cash reserve or liquid assets to be ready to take advantage of these moments. But, do not hold too much in reserve as you will not earn much if the market does not crash. Also, keep the reserves in a savings account that has an interest rate higher than inflation so the value of your money does not erode.

Build your market-crash reserve - take advantage of market crash opportunities.

Real Estate Crashes

Like in the stock market, real estate crashes can offer incredible opportunities to buy valuable assets at reduced prices. If the real estate market crashes and you do not have money to buy, you are missing out on opportunities.

An example is the 2020 pandemic - certain downtown areas had much lower prices, which if you bought, your real estate’s value now that the pandemic is over would be much higher.

Do not buy property based solely on price. In real estate, location is everything. A reduced price on a bad property or in an undesirable area is no bargain. Even in a downturn, focus on locations with strong future potential, as real estate values often take time to increase meaningfully.

To be ready to buy a property, you need to have liquid money.

Early Adoption

Early adoption of new things can lead to significant financial rewards, but it requires patience, curiosity, and a willingness to explore new opportunities.

When you find something interesting, investigate it and if you believe in it and think it can grow in the future, invest and be patient as it may take years for that thing to reach its full potential.

Examples are Bitcoin and Ethereum.

Career Opportunities

It is important to recognize new career opportunities and use them. That might be promotion, switching companies, expanding your business, or starting a new business.

Adapting To Unlock New Opportunities

Not all opportunities will align perfectly with your current plans or expectations. Sometimes, building wealth requires a shift in direction, new strategies, or a different way of thinking.

We saw that those who adopted the progress of social media into their business increased revenue, etc.

Uncovering Hidden Opportunities

Wealth-building opportunities are not always obvious. Sometimes, opportunities come from your hobbies and connections with others.

Pursuing Calculated Risk For Greater Rewards

Every opportunity involves some level of risk. Taking a calculated risk can lead to significant rewards. The key is to minimize the downside.

Ch. 8. Never Stop Learning

Always strive to learn new things and skills as you never know when some of them might awaken a wealth building idea for you.

Key areas that you should consider improving to boost both your personal and financial success:

1. Learn more about your craft

Be good at whatever your job is so you can increase your value and help command higher pay.

2. Learn to invest smarter

The more you understand about investing, the better you will be equipped to grow your wealth.

For beginners, you should focus on:

• stocks
• real estate
• bonds

3. Learn from your mistakes

The key is to see setbacks not as failures, but as valuable feedback that gets you closer to success.

4. Learn to strengthen your people skills

Technical knowledge alone is not enough. Understanding people and managing relationships is just as important.

Developing your communication, emotional intelligence, and leadership skills will make you more effective whether you are negotiating deals, managing teams, or marketing.

Continuously develop these skills:

1. communication
2. emotional intelligence
3. leadership

5. Learn more about yourself

Self-awareness is a critical aspect of personal growth. Make sure you understand your strengths, weaknesses, and motivations to better equip yourself for new challenges and opportunities.

6. Learn New Hobbies

Exploring new interests can lead to new opportunities.

7. Learn By Traveling

Travel is an invaluable teacher. It broadens your perspective, exposes you to new ideas, and reveals opportunities you may not have noticed before. Stepping outside your environment often sparks fresh insights that can benefit both your personal and financial life.

8. Continuous Learning as a Lifestyle

This is a lifetime choice. It’s about questioning, improving, and expanding your knowledge and skills.

Avoid falling into autopilot mode. Make a conscious effort to learn, focusing on incremental improvements in every aspect of your life.

These improvements compound over time.

Think of yourself as a character in a video game leveling up with each new skill and piece of knowledge. The more you learn, the more powerful you become, making it easier to achieve financial success.

Ch. 9. Routines That Build Wealth