How to build financial wealth in 1 sentence.

cityhead

The way in which all financial wealth is built, time immemorial is this:

Find a way to make money when you are not in the room.

This formula has never actually changed. All the traditional investments fit this definition. Property, Rents, Dividends, Interest, Equity and even creating a startup which becomes bigger than us. Essentially, we need to invent more than 24 hours in a day through the labour of others. We need revenue which is controlled rather than earned. We can build it, or buy it, either way can work. Some ways are faster than others. But if you want to generate money, then you need to bethink this maxim. It tells all about the financial future.

New book – The Great Fragmentation – out now!

Your new CV

I’ve helped a couple of people who are early in their careers find jobs recently. Well, I hate the word job, so lets say projects or startups where they only have 1 large customer (their employer).

The first thing I asked them is what their digital foot print looks like. While these ‘kids’ are digital natives, you’d be surprised at how many of them haven’t invested their digital knowledge into creating their personal brand on-line. I then remind them of the new amazing automatic CV generator. A lot of people haven’t heard of it, but it’s really cool. Most employers use it these days. If you want to see it in action, just click on this link – and type in your name.

Ok – so you see where I am going with this. And the simple truth is that your CV is what you say it is, not what your past employer or past job title says it is. It’s what you say it is, but if you choose to own your digital footprint. In fact the most important stuff you’ll do in your career these days, is the crazy projects that show you ‘get’ we are living through a revolution and that you want to be part of the revolution. The tools are all here, the tools are all free, all you need to do is allocated some of your daily 24 hours to them and create our own path. The cool part about creating your footprint is that the internet doesn’t care what school you went to, what your SAT score was or what club your are a member of. It only cares about what you create – or better put, co-create. The audience will do the judging, not some gate keeper. Smart employers and investors are more interested in your side projects than how you have earned a living. Your side projects say so much more about you and your capabilities. They do this because there are no barriers or permission requirements to what you can do in this arena. it’s a simple combination of your ideas, desire, work ethic and ability to connect with others who share your type of interest. It is all up to you, and democratized technology means you don’t have to be a genius.

I like to practice what I preach. And so I always make sure I’m doing stuff which differentiates me from the crowd. Stuff which google will like and let bubble to the top, stuff which shows I’m thankful for the resources gifted upon me in this digital revolution, stuff which gives to the community and helps others first. But mostly these are simple tasks which are more about regular effort than unreasonable effort. My homepage, this blog, my startups, my twitter account,my crazy projects, youtube videos, Op-Ed journalism and public speaking engagements are a few such outputs. The sad part is that it’s not that hard to do, but most people don’t bother.

My digital footprint I regard as a financial investment. I see it as a conduit to my current and future earning potential in all realms. And probably a better investment than a post graduate degree in today’s era.

Seth Godin recently advertised on his blog for a new staff member for Squidoo. What he asked applicants to provide was enlightening. Here are some (not all) of the information requests he made when looking for help:

  • Point to your personal website
  • Show us some of the projects you’ve led that have shipped and made an impact
  • Are you restless? What do you make or do in your spare time that leaves a trail and makes an impact?
  • Four book covers you think are both effective and beautiful
  • Find a particularly lame example of UX on the web and fix it into something better than good
  • What’s the best lesson you’ve learned from Steve Krug or Steve McConnell?
  • Point to a blog post that changed the way you think about connecting with people online (not by Seth!)
  • Show us a Squidoo lens that you’ve built
  • Have you created anything worth watching on Vimeo or YouTube?
  • In four bullet points, tell us how you’d change the Surface (or some website) to make it spread virally
  • Whose picture is this? How did you find out? Why does she matter?
  • Where do you work now? What’s great about it?

It’s a pretty clear indication of what matters today and not one mention about formal education. It’s none of the stuff that mattered yesterday, and excitingly it’s stuff we can choose to create with a little effort.

twitter-follow-me13

10 books that helped me

Felling a bit ‘listy’ lately, so here is one of 10 books that really helped shape my life and startup philosophy in the past few years. Of course this list is non-exhaustive and in no particular order.

  1. The alchemist
  2. Purple cow
  3. The intelligent investor
  4. A random walk down Wall st.
  5. 22 laws of marketing
  6. A whole new mind
  7. The clue train manifesto
  8. The cashflow quadrant
  9. The long tail
  10. Outliers

What books have shaped you?

twitter-follow-me13

the 2 types of investment

There are only 2 things we can invest:

Time & Money.

Rather than complaining about not having enough money to invest, invest your time instead. Time is the great equalizer. A rich person has no more or no less than you, me or anyone. We can beat anyone with what we do with our time. Learn the skills or put in the labour until it turns into money.

The trick is once the money comes in, to keep investing the time so you know how to use the money and not lose it.

twitter-follow-me13

What to spend our money on

The common question we hear is: Are you a spender or a saver? It’s the wrong question. Any smart person needs to be both. A more relevant question is what is worth spending our money on, and what things should we resist the temptation to spend on. Given that any good entrepreneur needs to have an live a lean life, not just in their startups but in their life, I thought I’d throw together a top10 list of what to spend on So here it is:

Top 10 things to spend money on:

  1. Books & newspapers
  2. Education
  3. Annual vacation
  4. Gifts (non lavish) for family & close friends
  5. Sports & exercise
  6. Fruit & vegetables
  7. Comfortable accommodation
  8. Public transport tickets
  9. Internet access
  10. Insurance

These are the things that we shouldn’t even think twice about spending on. They add value to our lives and make us better people. In the long run they pay for themselves.

Things which don’t appear on this list, and things we should make what I call our ‘Considered purchases’.

You should follow me on Twitter by clicking HERE

100,000 eyeballs for $8

If you want to know how to get your brand exposed to 100,000 people for $8 then we need look no further than what David did.

You may remember this post where David go his Jarritos soft drink van all branded up. Well, he took the next step in exposure and got to the AFL grand final early for a front row car park near the MCG for a measly $8. As far as I can tell it’s one of the greatest media investments of all time – there were 100,000 people in attendance. See photo journal below. Great startup bootstrapping David.

Web Success = Populate & Promote

I recently saw a job posted on a web developer recruiting website. It involved some people looking for coders to make a copy of my web business and livelihood www.rentoid.com. What was interesting was the lack decorum shown in the coder recruiting process where the person said – build me a replica of this website. Here’s a screen print of it below.

I was a bit annoyed at first. and sent out a tweet to assess the mood of my army of advisers on twitter. I tweeted the following:

Not sure what to think of this? http://bit.ly/cYR5FI A compliment or IP rip off with me and @rentoid as the victims? Help! Thoughts?

The responses were varied, but all were within the theme of this person clearly does not get what it takes. Here’s some verbatim of the tweet responses:

xshay don’t worry about it – we saw a guy offering to build redbubble for < $1000 once. A) not going to happen, B) not about the tech

shandsaker same thing happened to us. Just be confident that $750 and a 2 line project brief is $750 better spent on beer :-)

TimBull if they can only spend $750 to build it, quality won’t be there and they won’t stick it – betcha the coding was trivial part

BLKMGK01 Congrats man. Business must be huge if other people want to start ripping off ur ideas. U should apply to design the site! haha.

BrentHodgson Don’t let it worry you. You know that @Rentoid is more than the sum of its tech parts – & that it wasn’t a $750 job to create.

lukerides precisely…all about execution, so I would not worry…if they do a better job than you, they were always going to anyway!

I pretty much knew this before I tweeted the issue, but it did force me to think about web marketing success, and the success of rentoid to date and I came to the following conclusion. It’s not about the tech. In fact, the tech is pretty low down on the list of things needed for any website to succeed. And if i had to give my nemesis some advice on how to succeed in copying me it would be to do these two things:

Populate and Promote.

This is what needs to be done with any classified style website to succeed, and it takes a lot of time and investment. Investment in  financial and human capital. The problem with being 2nd, 3rd or later is that all the easy promotional opportunities like this are taken by the market innovator. And populating your website to make it meaningful takes a lot of boot leather, which is something many web entrepreneurs are afraid of.

twitter-follow-me