By Larry Chiang
A key concept in WTDTYASBS most critical chapter on cash and money and treasure is the concept of playing with “House Money”.
Gambling with house money is gambling with winnings. This key is a critical pattern I recognize. Doing well while you’re under massive debt is difficult because of the pressure.
I sell credit cards to undergrads.
As CEO, I’ve led an org to become #1 in selling credit cards because I advocated a consumer advocate truth: there is a right side and a wrong side to the interest rate equation. Paying interest is bad. Getting paid interest is good.
At the heart of this challenge is one thing that few can do. It is under consume.
The old way is to allocate 70-20-10. Spend 70%. Invest 20. Tithe 10
New way is 50-30-20.
It’s not just me saying this. My mentor said this. And you’ve heard:
“Keep your powder dry”
“Soon we will have our revenge on the Jedi”
“The key to this game is your capital reserves. If you don’t, you can’t piss in the tall weeds with the big dogs”
People that do it wrong say
“You can’t spend it when you’re dead”
“YOLO”
“You’re only young once”
Remember, debt makes you dumb and getting treasure helps you have a chance to be smart. Look at Mark Cuban’s blog. He may not have been a scholar at the state school he studied at but his blog has genius stuff and supreme insights https://www.blogmaverick.com
There is a method to increasing your treasure. It’s
ENGR145’s Anchor Concept: Lemonade and Gua Gua Guacamole
It moves you to the right on the entrepreneur bell curve
CEO of Duck9 Founding Stanford University EIR (Entrepreneur in Residence) Emeritus
Duck9 = “Deep Underground Credit Knowledge” 9 125 University Avenue/ 100 Palo Alto CA 94301 https://www.duck9.com/ass 650-566-9600 650-566-9696 (direct) 650-283-8008 (cell)
**************** Editor of the BusinessWeek Channel “What They Don’t Teach at Business School” https://whattheydontteachyouatstanfordbusinessschool.com/blog CNN Video Channel: https://ireport.cnn.com/people/larrychiang
Read my last 10 tweets at https://www.Twitter.com/LarryChiang
Author, NY Times Bestseller https://whattheydontteachyouatstanfordbusinessschool.com/blog/?s=Ny+times+bestseller
“What They Will NEVER Teach You at Stanford Business School” comes out 11-11-14
https://www.fastcompany.com/embed/c0d4562ea2049
52 Cards. Two Jokers. What They DO Teach You at Stanford Engineering
Emergency swings and cutting deals as an 9 year old
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