Why Idiots Get Rich

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THINK

“Some people get rich studying artificial intelligence. Me, I make money studying natural stupidity.“
Carl Icahn

Have you ever wondered how idiots get rich?

… D O N’ T Y O U D A R E

You’ve seen this person online, who you know (without any doubt!) that you’re smarter than, rich and successful.

How do they do it? 🤷‍♂️

Maybe?

But they’re not as dumb as you think because they know something you don’t. Today, I’m going to show you:

How entrepreneurs and investors make money
Why you won’t take action despite wanting to (and it’s not your fault)
Why you experience inner conflict
How idiots become rich
And how you can join them

Only you’ll be smarter… 😉

How Entrepreneurs Make Money

Most consumers are oblivious to the fact that entrepreneurs have taken a risk to make money.

An entrepreneur or business owner risks their TIME, MONEY and ENERGY to provide a solution to the market.

They receive money from selling that product or service, which more than covers the cost of their time, money and energy.

The more value they create, the more money they receive.

How Investors Make Money

Investors also make money by risking their TIME, MONEY and ENERGY into an asset.

They provide value by increasing the money businesses have access to, so they can expand.

Companies use investor money to create more jobs, improve their infrastructure and improve products or services.

The investor receives money from either selling their stake at a higher rate, receiving income from the asset or both.

But it doesn’t always go to plan for entrepreneurs and investors…

Roughly 50% of businesses fail in the first 5 years. The biggest companies on the planet have wasted millions of dollars, thousands of hours and hundreds of stress balls on failed ideas like New Coke, the Amazon Fire Phone, Google Glass, Microsoft Kin, Apple Newton… I could go on!

Since 2000, the stock market has experienced multiple drops of over 20% with one extending to over 50%. It’s not easy to sit on the sidelines and watch your money drop in half.

My point:

Make Money = Take Risks

To make money, you need to take risks.

Most people want more money (obvs!) but they prefer to avoid failure more, so they do nothing.

It’s not their fault. Our brains are wired to keep us safe.

If you sense risk, your spidey-sense kicks in and prevents you from doing that thing to avoid getting hurt or embarrassed.

There’s a reason behind this inner conflict and you can overcome it.

3 Brains Are Better Than 1

If we went back 1/2 billion years, we’d find ancestors that had very primitive brains. The Reptilian brains were instinctual and impulsive.

Going back 150 million years ago, we’d find ancestors who developed a more emotional component within the brain.

And if we went back a last few million years ago, we’d find ancestors who developed a more rational part of the brain. They could use reason and logic.

The emotional part of the brain didn’t replace the reptilian part of the brain. It was an addition.

Likewise, the rational part of the brain didn’t replace the emotional part. It was another addition.

Our brains today are much like they were a few million years ago. American physician and neuroscientist, Paul MacLean, referred to this as the Triune Brain theory.

The 3 parts of our brain interact with each other. ”Oooh brain friends”

But each component has a different driver, resulting in conflict. “What you say punk?!”

Example 1:

Rational Brain – “I’m going make a budget and effortlessly spend less money.”
Reptilian Brain – “…But first, I’m going to rip the face of that troll that insulted me online.”

Example 2:

Rational Brain – “I’m going to back myself and finally start that side hustle.”
Emotional Brain – “…But what if I mess it up, lose money and I look like an idiot. I’ll try it in a few months when I have more money.”

Do these sound familiar? I have thousands more!

Sadly, the rational brain is not in charge.

The reptilian and emotional parts distract and wear out the rational side with neverending streams of ideas and suggestions that aren’t always helpful.

The rational brain cannot reason with its counterparts because the reptilian and emotional components are sub-rational. They cannot be reasoned with.

”Does that make my mother-in-law sub-rational?” *

When the rational side of the brain gets hijacked by the other parts, it will even use logic and reason to support the reptilian and emotional desires.

“If I wait for the stock market to drop, I’ll invest in it then.”
“I’m not very good with computers, so I probably couldn’t make that side hustle work.”

Can you see the problem?

Your rational brain knows that starting a side hustle or investing in stocks will increase your wealth, but the primitive parts of your brain take over and put a stop to it to keep you “safe”.

But that sounds risky!

Ego is the Enemy

Taking risks doesn’t have to be about losing money.

In fact, the essence of this post is really about losing the ego. To stop worrying about looking stupid, failing or losing control.

Some of you will know that I had quite debilitating anxiety and panic attacks in my 20s. At its worst, I was afraid to leave the house. I know what it feels like to have your life directed by the primitive mind and it’s not fun.

One of the antidotes for me was Mindfulness and Meditation.

It taught me that you don’t have to take every thought seriously that pops into your mind. You don’t have to identify with it or act upon it.

A thought has as much merit as listening to your favourite podcaster, a friend or your favourite bald, ginger-bearded, Financial YouTuber.

Mindfulness and Meditation taught me to observe thoughts as they arise without judgment and allow them to naturally pass away. This helped me handle negative or unproductive thought loops.

This didn’t happen overnight but it changed everything.

If you’d like to learn more about how to overcome fear and prevent the irrational side of the brain from taking over, you can watch my YouTube video about it HERE.

I hope you find it useful in some small way.

How Idiots Become Rich

They go for it.

They don’t overthink or rationalise all potential outcomes.

They move forward, regardless of how they feel.

A common misconception is that successful people or heroes are fearless and made of ‘different stuff’. They’re not.

They just act in the presence of fear.

What you feel when you’re about to create content, start a side hustle or press that ‘buy’ button, isn’t different from anyone else.

They feel it too and they do it. The good news is, so can you.

Intelligence and talent mean nothing if you’re unwilling to take the risk.

It’s ALL about execution.

An idiot who is willing to lose or look stupid will always earn more money than someone who allows their primitive mind to hijack them, despite being more gifted and clever.

What about you?

*I took a risk and that will probably cost me! 😁

Reflect and share this with someone.

ASK

“Is my ego holding me back from what I truly want?”

“What am I prepared to act on in the presence of fear?”

“Can I allow this unhelpful thought to pass away? What’s a more helpful alternative”

Write down what comes to mind.

TRY

It might be the greatest gift you give yourself. 🎁

When I look back at my proudest life moments, EVERY SINGLE ONE of them involved me facing fear and discomfort. Develop the habit and it will pay you dividends.

It isn’t easy, but nothing meaningful in life is.

HIT REPLY and tell me how you stepped up.

I read and reply to every email.

Remember: Little by little, a little becomes a lot.