By Larry Chiang<\/p>\n
A key concept in WTDTYASBS most critical chapter on cash and money and treasure is the concept of playing with “House Money”.<\/p>\n
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.<\/p>\n
I sell credit cards to undergrads.<\/p>\n
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.<\/p>\n
At the heart of this challenge is one thing that few can do. It is under consume.<\/p>\n
The old way is to allocate 70-20-10. Spend 70%. Invest 20. Tithe 10<\/p>\n
New way is 50-30-20.<\/p>\n
It’s not just me saying this. My mentor said this. And you’ve heard:<\/p>\n
“Keep your powder dry”<\/p>\n
“Soon we will have our revenge on the Jedi”<\/p>\n
“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”<\/p>\n
People that do it wrong say<\/p>\n
“You can’t spend it when you’re dead”<\/p>\n
“YOLO”<\/p>\n
“You’re only young once”<\/p>\n
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<\/a><\/p>\n There is a method to increasing your treasure. It’s<\/p>\n ENGR145’s Anchor Concept: Lemonade and Gua Gua Guacamole<\/p>\n It moves you to the right on the entrepreneur bell curve<\/p>\n <\/p>\n <\/p>\n CEO of Duck9 Founding Stanford University EIR (Entrepreneur in Residence) Emeritus<\/p>\n Duck9 = “Deep Underground Credit Knowledge” 9 125 University Avenue\/ 100 Palo Alto CA 94301 https:\/\/www.duck9.com\/ass<\/a> 650-566-9600 650-566-9696 (direct) 650-283-8008 (cell)<\/p>\n **************** Editor of the BusinessWeek Channel “What They Don’t Teach at Business School” https:\/\/whattheydontteachyouatstanfordbusinessschool.com\/blog<\/a> CNN Video Channel: https:\/\/ireport.cnn.com\/people\/larrychiang<\/a><\/p>\n Read my last 10 tweets at https:\/\/www.Twitter.com\/LarryChiang<\/a><\/p>\n Author, NY Times Bestseller https:\/\/whattheydontteachyouatstanfordbusinessschool.com\/blog\/?s=Ny+times+bestseller<\/a><\/p>\n “What They Will NEVER Teach You at Stanford Business School” comes out 11-11-14<\/p>\n