Wealth
Do Not Do This if You Wish to Be Wealthy
On your journey to wealth, there are obvious things we need to avoid. Things like excessive spending, taking high-risk and doing things that are not particularly useful. I have read tonnes of articles on becoming wealthy and many spit out the same old stuff.
However, I figured that many wealthy “gurus” have learned to accumulate and grow their wealth from their life experiences. For many, something allowed them to develop the characteristics to get to where they want to be.
I am not wealthy yet, but there is one thing I have spotted in my family and friends that are poor. And I believe it is this one thing that keeps people from becoming wealthy.
Before we jump into it, let us make sure we define wealth. Many people see wealth as different things, and if you ask google for a definition, two pop up. The first is an abundance of valuable possessions or money. And the second is a plentiful supply of a particular desirable thing.
I am focussing on the first definition of wealth. Although the second is important, I would say many are in pursuit of the first definition. It is more specific and fits well with all the people we look up to as wealthy, like Jeff Bezos and Bill Gates.
So, whilst in pursuit of an abundance of valuable possessions, here is the one thing you should avoid.
What Game Are You Playing in Life?
There are fundamentally two games we can play in our approach to life. Although these games are simplifications of life as we know it, they are good places to start. The first type of game is a positive-sum game.
People know when they are playing a positive-sum game because everyone benefits from it. These type of games have no losers and always produce more happiness than there was before. The perfect example to use for a positive-sum game is wealth.
A barber could spot a gap in the market for a particular style of hair in their area. So, they save for years to open up a shop. Once that shop is open, they have created wealth because they now have a valuable asset.
But they have also created a benefit for society. Now people with that particular hair type can feel and look better. But also, they may hire some barbers, so now they have created some jobs.
Of course, not everyone gets an equal piece of the pie. It would be unfair to the owner who spent years saving and planning. However, everyone does get something, and as a result, there is more happiness in society than before.
Many people like to criticise the wealthy and say that they are greedy. I have read many articles from charities saying things like the top 10 wealthiest people could eliminate poverty. Firstly, those stats tend to be inaccurate. But more importantly, society as a whole benefit from their wealth.
You may say that Microsoft or Apple are too expensive, but some people would be willing to spend more. Whether you like the individual or not, their wealth has furthered our ability to do things more effectively. Amazon’s quick services let us get items delivered the next day, and Microsoft powers many of our computers.
When wealth is created, we all benefit from it in some way. And when you see wealth as a positive-sum game, your approach to pursuing an abundance of things should change. Instead of seeing wealth as a selfish pursuit, you can see it as a selfless pursuit. You are trying to solve problems and make the world a better place, and in return, you receive the world’s thankyou.
Unfortunately, many see wealth as a selfish pursuit and chase after it as a means to bring themselves up. But these people are not playing a positive-sum game. They are playing a zero-sum game. And in fact, many of them are not pursuing wealth but something else.
Zero-sum games are as it sounds. The net result of playing these games is always zero because there is a winner and a loser. Sports and other competitions are perfect examples of zero-sum games.
Now zero-sum games are important and are a necessary evil. If they did not exist, we would not be able to differentiate the leaders from the followers. Also, smarter individuals should hold jobs that are more difficult and have more on the line.
So we should make these distinctions. But they all come at the cost of someone else. The only reason why you win is that there is a loser. So fundamentally, the joy of winning is rooted in the loser existing.
When we approach positive-sum games with a zero-sum mindset, we tend to screw things up. A romantic relationship is a positive-sum game because both benefit from being with one another. However, if one is greedy and takes more than they give to “win”, the relationship collapses.
And it is the same with wealth. If you approach wealth with a zero-sum mindset, you probably will not become wealthy. And if somehow you do, you will probably not enjoy it. Here is why.
Do Not Play Status Games
As I mentioned before, many who are pursuing wealth with a zero-sum mindset are not seeking wealth. As I observe my poor friends and family, I now realise they are seeking status. And status is a zero-sum game.
Status is where you are in the social hierarchy. And to be considered higher than someone else, there must be someone lower. Therefore, it is a zero-sum game. Individuals who pursue wealth with a zero-sum mindset end up spending most of their time trying to get approval from others.
For them, wealth is not something used to create value for others. Instead, it is to elevate themselves. So, any penny they get, they use to buy expensive things to impress people they do not even like. They post Instagram photo’s in lavish restaurants and buy flashy cars.
They try to signal to the rest of the world that they are higher and better because they are “wealthy”. At all cost, you need to avoid status games when it comes to your pursuit of wealth. If you truly want to make a difference, you should go for it despite what others think of you.
Why People Who Play Status Games Will Always Be Poor?
As a zero-sum game player, your happiness is always dependant on someone else. The winner depends on the loser for their happiness. The leader depends on their followers for theirs. And those trying to climb the status ladder need the people below them.
Most people who play zero-sum games try to create positive-sum games from them. That is why we have quotes like:
“Leaders don’t create followers, they create more leaders.” — Tom Peters
The true value will always be in positive-sum games. So the worst thing you can do is treat wealth like a zero-sum game.
“It is not a race to the finish, for there are no winners. And it is not a climb to the top, for there is no limit. It is a constant pursuit of making society better.” — Tavian Jean-Pierre
You can find some more of my articles about wealth creation below:
