Getting Rich

Beyond Money’s Grasp: A Deeper Drive to Success

January 13, 2025 By Nagesh Belludi Leave a Comment

Beyond Money's Grasp: A Deeper Drive to Success

Successful individuals often find themselves driven to excel long after the allure of material rewards has waned. In the early stages of a career, financial concerns often take center stage. Young professionals are preoccupied with using disposable income to repay student loans, cover daily expenses, engage in some indulgent spending, and lay the foundation for financial stability. As their careers progress, however, there’s a noticeable shift in the importance of money. This transformation varies among individuals, but nearly everyone reaches a point where the stress of bills and even luxury desires diminishes, only to be supplanted by a need for what sociologists call psychic income.

For the ultra-successful, wealth accrues at a pace that outpaces practical spending. Their life becomes abundant, yet paradoxically, time feels limited. They have the means to pursue their passions but lack the time to do so. What truly captivates these successful people are factors that transcend monetary gain. Inspiration is fueled by ego, a sense of passion, and personal fulfillment—it thrives on the stimulation of challenges and the sheer joy of the journey. Success is rooted in a sense of mastery, achievement, and making a meaningful impact.

For those still on the path to success, a valuable lesson emerges: what many successful people value about their careers when they’re already successful mirrors the same qualities they sought throughout their professional journey. When climbing the corporate ladder, they didn’t gravitate toward safe, high-paying positions. Instead, they pursued challenging opportunities, and these ventures proved to be profoundly rewarding.

Idea for Impact: Success is a complex and personal concept, shaped by a blend of factors that align with one’s values and aspirations. Once you’re no longer a slave to the coin’s cruel reign, you’ll discover the true wellsprings of inspiration—an invitation to a richer and more purpose-driven existence.

Book Summary of Bill Perkins’s Die With Zero

December 28, 2024 By Nagesh Belludi Leave a Comment

Hedge fund manager Bill Perkins’s Die With Zero: Getting All You Can from Your Money and Your Life (2020) emphasizes the unpredictability of life and how wealth can breed attachment. Instead of hoarding resources for an uncertain future, you should focus on maximizing life experiences while you are still healthy enough to enjoy them.

Perkins outlines how priorities shift through different life stages. Many retirees feel unprepared to truly enjoy their golden years, despite having the financial means to do so. Rather than viewing this time merely as a financial reserve, retirees should strive to make those years vibrant and fulfilling. Ultimately, at the end of life, accumulated wealth holds no intrinsic value.

Idea for Impact: Riches alone will leave your stories untold. Balance prudent thrift with meaningful enjoyment of the present by intentionally spending on experiences that align with current means. Don’t keep delaying the good stuff. Live to the core.

Does Money Always Motivate?

August 26, 2024 By Nagesh Belludi Leave a Comment

Does Money Always Motivate? Most credible studies by psychologists and economists have indicated that money alone doesn’t accomplish much when you want to add motivation over the standard effort.

By and large, money contributes considerably to happiness as people move up from poverty. It contributes to happiness more modestly as income reaches the community’s norm. Beyond that point, money only adds a little to happiness.

People indeed welcome a raise and regret a decline. But most adapt to their change in circumstances, and the change doesn’t markedly affect their happiness over time.

This being said, ask people if they’re willing to change their job for a better one in virtually every aspect they can imagine—better environment, cooler technology, more exciting products, and broad scope for self-development—but with lower money offer, few would give in.

Idea for Impact: The money-as-a-motivator premise has some validity, but it’s not all-encompassing. For the most part, the dominant motivator for many employees is meaning—the prospect of learning and growing, engaging in stimulating work, and getting recognition for achievements.

Maximize Income, Not Savings

March 26, 2024 By Nagesh Belludi Leave a Comment

Income Matters: Prioritize Prosperity Focus on prioritizing increasing income and enhancing life satisfaction rather than solely focusing on maximizing cost savings.

While it’s crucial to be frugal and mindful of spending for financial stability, there comes a point where excessive emphasis on cutting living costs can be counterproductive.

Accumulating wealth becomes more attainable with dedicated focus and expertise in a field where others are willing to pay you for what they want done.

Idea for Impact: Forget about articles that preach how much money you save in a lifetime if you skip that everyday fix of an Iced Caramel Cloud Macchiato at Starbucks. Work on making so much dough that those crafted lattes become but a tiny rounding error in your personal finances.

The Problem with Modern Consumer Culture

November 20, 2023 By Nagesh Belludi Leave a Comment

The problem with modern consumer culture is that it makes people want things they don’t need. It encourages us to stay on the ‘hedonic treadmill.’ We never tire of pursuing more and more stuff, especially when those around us have more than we do.

A life of excessive consumerism is not the one to choose.

The engine of a consumer society is discontentment. Consumerism and materialism promote dissatisfaction because if people are happy and appreciative of what they’ve got, they’d be less concerned about getting more.

Modern advertising is manipulative. It’s no longer about telling people that a product exists. It’s not about helping consumers respond favorably to an existing need they have. It is now about creating false desires such as for absurdly priced Louis Vuitton products—wants and needs for something they weren’t probably aware of before seeing the advertisement.

Discontentment is the motivation for our restless desire to spend.

Consumerism encourages the relentless accumulation of positional goods.

Goods, often cheaply and readily available to us, are sold not because of their utility but because of the image that they carry (think Marlboro Man.) Advertisers suggest what we’ll be saying to others about ourselves. As soon as we have purchased one thing, the next thing is dangled.

Idea for Impact: Consume Less. Live More.

Folks, be aware of how consumerism touches your life and footprint on the earth’s resources. Ignore advertising. Live the life you want, not the one others would like you to live. More and more is not better if it can never be enough.

Here’s the #1 Lesson from Secret Millionaires

January 11, 2021 By Nagesh Belludi Leave a Comment

Ronald Read (1921–2014) of Brattleboro, Vermont, worked as a gas station assistant and a custodian at a J. C. Penney store. He was a thrifty man, and he even held his coat together using safety pins. Upon his death, he left $2 million to his stepchildren, caregivers, and friends, and another $6 million to the local library and a hospital. Read had built up a secret wealth by starting small, studying businesses that he understood, buying their stock, and holding them for the rest of his life.

Grace Groner (1909–2010) of Lake Forest, Illinois, lived a frugal life in a small one-bedroom cottage near Chicago. She got her clothes at hand-me-down sales, didn’t own a car, and worked most of her life as a clerk for Abbott Laboratories. Groner willed a $7 million scholarship endowment at Lake Forest College. The money came from three Abbott shares she had purchased in 1935 and let grow, reinvesting the dividends.

Agnes Plumb (1905–95) of Los Angeles left a $98 million estate to four hospitals. Plumb had amassed that fortune after liking cornflakes when they were first marketed and having her dad buy her Kellogg’s shares during the company’s early days. She allowed her investment to compound, and by the time she died, she had accumulated 1.3 million shares of the Kellogg Company. She was collecting some $437,000 just in dividends every three months.

Jack MacDonald (1915–2013) was a coupon-clipping, bargain-hunting Seattle lawyer. He even wore sweaters with holes in them, and people assumed that he was broke. When he died at age 98, he left a surprising fortune worth $187 million to various causes, including Seattle Children’s Hospital.

Kathleen and Robert Magowan (1925–2011, 1925–2010) of Simsbury, Connecticut, died within a year of each other. These twins lived as hermits throughout their lives and built up a fortune through wise stock market investments. They left $10 million worth to various civic institutions.

Curt Degerman (1948–2008) was a can-collecting street bum living in Skelleftea in northern Sweden. For three decades, “Burk-Curt” (‘Tin-Can Curt,’) as he was called, roamed the streets of his town in tattered clothes. In between collecting cans, Degerman spent much time in the town library studying business media and examining the stock market. He used his tin-can incomes to buy mutual funds and gold. When he died, he left more than $1.4 million to his cousin.

Time in the Market is a Great Compounder.

There’s one thing not apparent in these live-modestly-and-invest-prudently anecdotes. The fortunes of these seemingly ordinary, generous folks became so big due in no small part to their age.

With time, money has the chance for a heck of a lot of compounding. Money grows 10.83 times every 25 years if you consider a 10% historical mean return on equities. To take a prominent example, Warren Buffett, who’s now 90 years old, has made 99.7% of his fortune after 52.

Idea for Impact: Time in the stock market is infinitely more important than timing the market. Start investing early. Watch over your health. Live a long life. Grow your money. A long time horizon will enable your investments to grow through the “magic” of compounding.

The Extra Salary You Can Negotiate Ain’t Gonna Make You Happy

October 13, 2020 By Nagesh Belludi Leave a Comment

This well-cited study shows that people with high incomes aren’t actually that much happier than their less-earning brethren. This is something many people know empirically. Never mind that subjective happiness is a nebulous condition that’s not easy to measure.

The belief that high income is associated with good mood is widespread but mostly illusory … People with above-average income are relatively satisfied with their lives but are barely happier than others in moment-to-moment experience, tend to be more tense, and do not spend more time in particularly enjoyable activities.

Of course, there’re situations wherein more money can make a real difference in your well-being: nirvana from living paycheck-to-paycheck, freedom from debt, and adequate savings for retirement. Yes, being poor makes people miserable.

But, beyond a reasonably upper-middle-class living (better health care, lavish-enough vacations and celebrations, affording one partner who could stay at home, the ability to buy conveniences, and so on,) additional income doesn’t create enough incremental happiness to justify all the compromises the extra income entails.

Even people who had big wins in the lottery winded up no happier than those who had bought lottery tickets but didn’t win. Sure, these people will be more content with their new toys for a short time, but that delight typically fades away quickly. After that, they’ll seek out yet another indulgence. Soon, that’ll wear off too, at which point they’re already on the hedonic treadmill.

Idea for Impact: Be mindful of what you’re trading away in the pursuit of a higher salary. Wealth and status are false gods.

Yes, Money Can Buy Happiness

October 7, 2019 By Nagesh Belludi Leave a Comment

This HBR article considers why the pursuit of money isn’t bringing you joy.

Even though, as a society, we really have more time to spend than in previous societies as a result of convenience and mechanization, we tend to use free time to work yet more and expand our bank accounts, rather than invest that time in things that can provide us with more happiness—meaningful relationships, for example.

The article (and the related podcast) explains how to value your time over money, in particular by hiring help. Here is a précis:

You might not be able to change how many hours you work in a week, but you might be able to change how much of those non-work hours you’re spending on chores.

If you are having a really busy weekend and you have four or five hours of chores to do at home, that means you’re going to have four or five less hours to spend in any other way that could promote meaning and happiness.

When considering how we can use money to increase our happiness, most of us think of investing it in positive experiences like Hawaiian vacations. But it’s also important to think about how to eliminate negative experiences from our day. Take small actions—don’t do anything too drastic, but just sit down and think about whether there’s anything you can outsource that you really don’t like, that stresses you out a lot, that you can afford.

Idea for Impact: Use your hard-earned money to buy time, reduce stress, and increase happiness

If you feel increasingly strapped for time, consider (think opportunity costs) earmarking a fraction of your discretionary income to hire a personal assistant and buy get yourself some more of that most valuable of life’s supplies, free time.

Start by asking your friends for referrals for a reliable assistant. Outsource your housework, shopping, errands, and other tasks that you dislike. Use the salvaged time to seek activities that bring you joy—recreation, relationships, spiritual and intellectual nurturance, or even productive work.

However, farm out personal chores in moderation. There’s some evidence to suggest that people who outsource too much have the lowest levels of happiness, perhaps as a consequence of indolence.

Wealth and Status Are False Gods

April 25, 2017 By Nagesh Belludi Leave a Comment

While it’s certainly one thing to know that money is a way to fulfill your requirements in life, it’s quite another when money becomes your primary motivation and measure of success, or when you come to equate happiness or worthiness with your wealth.

While there nothing characteristically wrong with material wealth or its pursuit, it’s easy to expect too much from money.

The New Testament (1 Timothy 6:10) reminds you to be aware of the difference between need and greed, “love of money is the root of all kinds of evil.” Money can push you to take on or keep you in unhealthy relationships and unsatisfying careers. It can lead you to neglect your social life and undervalue the importance of relationships. Besides, money can adulterate your soul, germinate dishonorable conduct, and make you unworthy regardless of the wealth you accumulate.

Status Is the Enemy of Passion

Prestige, cachet, status, wealth, and approval as dominant extrinsic motivators are appropriate and can be life-affirming in the short term, but they eventually confuse and undermine you from the things that do offer deeper rewards for a life well led. The British-American venture capitalist and essayist Paul Graham wrote in his stimulating 2006 article “How to Do What You Love” discussed the hollowness of pursuing “prestige”:

What you should not do, I think, is worry about the opinion of anyone beyond your friends. You shouldn’t worry about prestige. Prestige is the opinion of the rest of the world.

….

Prestige is like a powerful magnet that warps even your beliefs about what you enjoy. It causes you to work not on what you like, but what you’d like to like.

….

Prestige is just fossilized inspiration. If you do anything well enough, you’ll make it prestigious. Plenty of things we now consider prestigious were anything but at first. Jazz comes to mind—though almost any established art form would do. So just do what you like, and let prestige take care of itself.

Prestige is especially dangerous to the ambitious. If you want to make ambitious people waste their time on errands, the way to do it is to bait the hook with prestige. That’s the recipe for getting people to give talks, write forewords, serve on committees, be department heads, and so on. It might be a good rule simply to avoid any prestigious task. If it didn’t suck, they wouldn’t have had to make it prestigious.

Materialism is Shallow

As a modern society, we are remarkably driven by status—because we regard ourselves more worthy of others’ respect if we possess a home in a status neighborhood, a vacation property, brand-name or even designer-label clothes, luxury watches, expensive jewelry, and so on. But the pursuit of a materialistic lifestyle comes at a high cost.

Writing about the shallowness of materialism, the Christian apologist Ravi Zacharias wrote in Recapture the Wonder (2003),

In a culture where the possibility of wealth and the acquisition of things is so defining of success, we end up pursuing things that, even if we are successful, can never deliver what we envisioned they would. The reason riches become such a snare is because we end up evaluating life in mercenary terms and being seen by others in such terms, and life is just not so.

Money can buy lots of things that make us feel good and important. However, people preoccupied with money and status are never satisfied. Often, their desires and debts grow faster than their means. The more they have, the more they think they need. Discouraging gluttony and lavish spending habits, the great Roman Stoic philosopher Seneca wrote (per Dialogues and Essays,)

Shun luxury, shun good fortune that makes men weak and causes their minds to grow sodden, and, unless something happens to remind them of their human lot, they waste away, lulled to sleep, as it were, in a drunkenness that has no end…. Although all things in excess bring harm, the greatest danger comes from excessive good fortune: it stirs the brain, invites the mind to entertain idle fancies, and shrouds in thick fog the distinction between falsehood and truth.

Idea for Impact: You are rich if you think you have enough

Put the value of money and the pursuit of wealth in perspective. Feel rich and have a soft spot for certain indulgences. But, don’t get trapped in the spectacle of riches.

Being rich and seeking status can cost a fortune—the things that you may have to do to flaunt your wealth can cost almost as much as your wealth itself. As the French philosopher Jean-Jacques Rousseau once said, “The money you have can give you freedom, but the money you pursue enslaves you.”

You are Rich If You Think You Have Enough

March 7, 2017 By Nagesh Belludi Leave a Comment

Money isn’t the most important thing in life, except when you truly don’t have enough of it. Nevertheless, virtually everyone at every income level seems to place too much importance on it.

The relationship between money and happiness is well established: money can buy happiness, but it can only buy less than most people think. Beyond a humble middle-class living, study after study shows that people with more money are no happier.

What Money Gets You

Wealth can actually give you three essential things.

Firstly, money can help establish a financial foundation. Money can reduce or eliminate the despair caused by poverty and debt. Once you amass a sufficient amount of wealth, financial troubles will not weigh on you so heavily. Money allows you to not only live a longer and healthier life, but also defend yourself against worry and harm. Further, a sizable wealth can give you independence from the entrapment of having to make money just to make money. Berkshire Hathaway vice-chairman and Warren Buffet’s business partner Charlie Munger once said, “Like Warren, I had a considerable passion to get rich, not because I wanted Ferraris—I wanted the independence. I desperately wanted it.”

Secondly, wealth can allow you to have vacations, gatherings, and spend meaningful time with family and friends. Many studies have shown that the tenor of your social life is one of the most significant influences on your emotional wellbeing. Folks with many deep social connections are less likely to experience loneliness, sadness, low self-esteem, and problems with eating, sleeping, and relaxing.

Thirdly, wealth can allow you to invest your time absorbed in activities that you’re passionate about. Happiness research is clear: people are often happier when they spend their money on life experiences rather than on purchasing material goods. We humans seek meaning. Therefore, life experiences—especially those involving other people—make us happy primarily because events often generate vivid memories that we can later recall with pleasure. In contrast, we quickly adapt to material goods we purchase. Harvard Psychologist Daniel Gilbert, author of the bestselling Stumbling on Happiness (2006,) explained the pleasure from buying experiences as opposed to material goods in a 2011 paper in the Journal of Consumer Psychology:

After devoting days to selecting the perfect hardwood floor to install in a new condo, homebuyers find their once beloved Brazilian cherry floors quickly become nothing more than the unnoticed ground beneath their feet. In contrast, their memory of seeing a baby cheetah at dawn on an African safari continues to provide delight. Over time, {people exhibit} slower adaptation to experiential purchases than to material purchases. One reason why this happens is that people adapt most quickly to that which doesn’t change. Whereas cherry floorboards generally have the same size, shape, and color on the last day of the year as they did on the first, each session of a year-long cooking class is different from the one before.

Another reason why people seem to get more happiness from experiences than things is that they anticipate and remember the former more often than the latter. … Things bring us happiness when we use them, but not so much when we merely think about them. Experiences bring happiness in both cases …. We are more likely to mentally revisit our experiences than our things in part because our experiences are more centrally connected to our identities. …

A final reason why experiences make us happier than things is that experiences are more likely to be shared with other people, and other people … are our greatest source of happiness.

Idea for Impact: You are Rich If You Think You Have Enough

Put the value of money and the pursuit of wealth in perspective.

Money is an opportunity for happiness. Money allows you to do what you please. But don’t fall into the trap of thinking that more money and more material goods will unavoidably make you more happy. A certain amount of money will surely make life easier and satisfied, but more money and more material goods bring more problems.

Feel rich, have a soft spot for certain indulgences, and invest in memorable experiences rather than in material objects.

Don’t get trapped in the spectacle of riches.

Don’t let money own you.

Getting Rich

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A life of excessive consumerism is not the one to choose.

Discontentment is the motivation for our restless desire to spend.

Idea for Impact: Consume Less. Live More.

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Time in the Market is a Great Compounder.

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Idea for Impact: Use your hard-earned money to buy time, reduce stress, and increase happiness

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Status Is the Enemy of Passion

Materialism is Shallow

Idea for Impact: You are rich if you think you have enough

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What Money Gets You

Idea for Impact: You are Rich If You Think You Have Enough

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