There are many ways to get rich. But in my opinion, there is only one real way:
"Do you want to be a billionaire? Then help a billion people, " said Peter Diamandis.
Paul Graham knows all about getting rich. He achieved this in 1998, when his company Viaweb was sold to Yahoo! for $49.6 million.
Now it helps others do the same in Y Combinator by "growing" promising startups. The total value of the companies in which YC has invested is more than $ 65 billion.
In the book Hackers and Painters by Paul Graham, there is a Chapter "how to get rich", in which He shares the principles that help you get rich.
"The burden of the average»
First, let's get something straight.
Money and wealth are not the same thing. Money — whether it's paper or numbers on a screen-is a means of storing value. Wealth, on the other hand, is value itself.
The essence of business, says Graham, is not to make money:
"People think that business creates money. But money is just an intermediate stage on the way to what people want. What most companies actually create is wealth. They do what people want."
There is a drawback to working for hire. Every time you become a part of a larger whole, you face the "burden of the average":
"The work you do is averaged along with a lot of other people. ... If you are paid X dollars a year, then on average you must generate at least X dollars a year, or the company will spend more than it earns and close down."
These days, people are throwing the word "equality"around. But let's not confuse equality of opportunity with equality of results.
Graham explains how two programmers (who receive the same salary) can show completely different results:
"...there are huge differences in the rate of wealth creation. On Viaweb, we had one programmer — a kind of performance monster. I remember watching what he did during the day and realizing that he added several hundred thousand dollars to the company's market value. A great programmer on a wave of success could create a wealth of a million dollars in a couple of weeks. An ordinary programmer over the same period will bring zero or even negative wealth (for example, by creating bugs)."
"In the right business, someone who really dedicated themselves to work could create ten or even a hundred times more wealth than the average employee."
This explains why it is difficult to get rich in large, slow-moving companies:
"If you want to move faster, the problem is that your work is connected to a lot of other people. In a large group, your performance is not measured separately, and the rest of the group slows you down."
If you work for hire and your job helps a million people, you probably won't become a millionaire. This is because you are not paid directly for the wealth you create.
So the first step to getting rich is to go to a system where you get rewarded directly for your contribution.
Paul Graham calls this the measurement of the quality:
"You need to be in a position where your performance can be measured, or there is no other way to get more than by working more."
An example of this is software development. If I develop software on my own and sell it to 10,000 people, instead of a hundred, I will get 100 times more revenue. I get paid to do more and achieve more.
However, there is a second part of the puzzle. How are you going to help a million people?
People who do this, according to Paul Graham, have a winning position:
"...you must have leverage — in the sense that the decisions you make have a lot of influence."
Everyone who has achieved wealth through their own efforts has both of these qualities, says Graham:
"I think everyone who achieves wealth through their own efforts finds themselves in situations where their work can be accurately measured, and where they have leverage. This applies to everyone: executives, movie stars, hedge Fund managers, professional athletes."
But if you need a challenge, if you want to have a stronger impact on the world, and you like the idea of getting paid for your contribution, perhaps a measurable and highly effective profession is what you need.