TIP787: The 5 Types Of Wealth w/ Kyle Grieve

“The status test game. To determine whether you're playing a bought status game, ask yourself whether you would buy this thing if you couldn't show it or tell anyone about it. If the answer is no, then you're playing a bought status game. To understand if you're playing an earned status game, ask: could the richest person in the world acquire the thing I want by tomorrow?”

Psychology & Behavior · Philosophy & Reasoning

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Two-question earned status test

“The 1938 Harvard Grant Study and the Glueck Study, unified in 1972, tracked 724 participants for over 85 years. The crucial conclusion: relationships are everything. Healthy relationships were the best predictor of life satisfaction, outpacing social class, wealth, fame, innate intelligence, and genetics. Even more importantly, healthy relationships had a direct positive impact on physical health. Loneliness was found to be worse for health than traditional issues such as alcohol or tobacco use.”

Psychology & Behavior · Culture & Society

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Relationships outweigh wealth for satisfaction

“Buffett told his personal pilot about this 3-step process to clarify personal and professional goals. First, you simply write down your career goals, 25 or any number. You circle the top 5 goals from that list. On another sheet of paper, you put the 5 on one side and the rest on the other side. Next, you ignore the rest as they're now your avoid at all costs list, as they serve to just be a drag on getting to your primary goals. Then focus on the top 5.”— Warren Buffett

Strategy & Decision Making · Leadership & Management · Operations & Execution

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5/25 rule: focus on top 5, avoid rest

“Consider two friends, Mike and Aaron, both software engineers at the same company with nearly identical salaries. Mike lives a life of luxury: 5-star vacations, Mercedes-Benz, affluent neighborhood, 6-car garage, Patek Philippe watch. But Mike has zero savings and multiple credit cards well into six figures. Aaron lives comfortably but modestly: nice vacations, ordinary car, modest home, two-car garage. Aaron saves 20% of his income every month and never wavers.”— Kyle Grieve

Business & Entrepreneurship · Psychology & Behavior · Economics & Markets

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Same income, vastly different outcomes

“The Four Horsemen of Relationship Death emerged from a 1992 study by Dr. Gottman who interviewed 52 married couples and could predict with 94% accuracy which relationships would end in divorce. The four: criticism, defensiveness, contempt, and stonewalling. For criticism, avoid using the word 'you' and focus on 'I.' This reframes blame. For defensiveness, accept their perspective and apologize. For contempt, create a reminder of your partner's positive traits.”

Psychology & Behavior · Leadership & Management

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Four patterns that predict divorce

“All I want to know is where I'm going to die, so I'll never go there. If you know what could happen to make sure your goal never happens, isn't that probably a very important part of reaching your destination? But Sahil Bloom takes it one step further. There are goals that we might want to achieve, but what's the point in getting to that goal if you step on the toes of everyone in your life who you love and gives you joy and happiness?”— Charlie Munger

Strategy & Decision Making · Philosophy & Reasoning · Psychology & Behavior

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Anti-goals prevent pyrrhic victories

“Everyone we love, they are on a loan to us for a short period of time. They are just gone in the blink of an eye. The American Time Use Survey showed that time spent with family peaks in childhood, then declines precipitously as you reach 20, then levels off for the remainder of your life. Time spent with children is fleeting: you're probably the center of your child's universe for maybe just another 7 more years and then that's about it.”

Psychology & Behavior · Philosophy & Reasoning

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Time with family is finite and fleeting

“The single greatest investment in the world is investing in yourself. This includes things like books, courses, education, fitness, meeting new people, eating quality foods, prioritizing mental health and personal development, and getting adequate sleep. One reason investing in yourself is so important is that it opens up serendipity. I can trace being on this podcast to a writing course that helped me build a daily writing habit.”— Kyle Grieve

Business & Entrepreneurship · Creativity & Innovation

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Self-investment creates serendipity

“The Eisenhower Matrix was attributed to Dwight Eisenhower's incredible productivity. Important and urgent tasks need to be done right now. Important and not urgent require attention and create very high returns as long as you don't procrastinate. This is the area you should spend most of your time with. Not important and urgent drain time away from important tasks. If you can, delegate these. Not important and not urgent are complete time wasters and can be deleted.”

Operations & Execution · Strategy & Decision Making · Leadership & Management

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4-quadrant priority framework

“You will never have true financial wealth if you allow your expectations, your definition of enough, to grow faster than your assets. The Swedish term lagom translates to just the right amount. Lagom is a way to bring balance to your financial life, but it's not a static state. As I work more and become more prosperous, I've had to be careful not to let my spending get out of control. It's easy to see more money coming in and assume you should ratchet up the money going out.”— Kyle Grieve

Economics & Markets · Psychology & Behavior

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Expectations can't grow faster than assets

“Ikigai is a Japanese term meaning life and worth. When put together, it connotes a reason for life. Ikigai has been used by some of the oldest Japanese people to help them live long and healthy lives. At its heart, it's made of 4 parts: what you love, what you're good at, what the world needs, and what you can be paid for. Your ikigai is at the center of where they overlap. The centenarians of Okinawa focus on how to transcend one's career.”

Philosophy & Reasoning · Psychology & Behavior

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4-circle purpose framework

“Helped, Heard, or Hugged. When someone comes to you with a problem, simply ask them, do you want to be helped, heard, or hugged? When you ask this question, you become much better aligned with the type of support that they need from you. Sometimes they don't want advice. Sometimes they want to listen. Sometimes they just want the comfort of a hug.”

Psychology & Behavior · Leadership & Management

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Ask: helped, heard, or hugged?

“The Feynman Technique: Set the stage by figuring out what you want to learn, gathering resources, and learning it. Teach it to an 8-year-old, eliminating the possibility of using complex jargon. Assess and study: identify blind spots. Were there questions you didn't have answers to? Organize, convey, and review. Find your blind spots, go back to source material, and refine over time. Warren Buffett was a complete master of this. Charlie Munger was good at it, but he loved jargon.”

Creativity & Innovation · Leadership & Management

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4-step teaching-to-learn framework

“The Think Day is a condensed version of Bill Gates's Think Week. Pick a day each month to step away from all professional demands. Seclude yourself, change status to out of office, shut off all devices. Use that time to read, learn, journal, think, and allow yourself to zoom out and look at the bigger picture. Thinking prompts: If I repeated my current typical day for 100 days, would my life be better or worse? If people observed my actions for a week, what would they say my priorities are?”

Philosophy & Reasoning · Strategy & Decision Making

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Monthly reflection day with prompts

“Real wealth can be achieved by pretty much anybody, no matter what you own or how many assets you have. The problem with how people view wealth today is that you can be a massive success in something such as business while simultaneously being a massive failure in family, friendships, and the mental and physical aspects of life. And even if you do accumulate financial wealth, you can still be basically poor if you spend more money than you make.”— Kyle Grieve

Philosophy & Reasoning · Psychology & Behavior · Business & Entrepreneurship

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Wealth is multi-dimensional, not just financial

“If you get to my age and nobody thinks well of you, I don't care how big your bank account is, your life is a disaster. The safest way to get what you want is to deserve what you want. If you want to be a good role model, you must display the characteristics and habits that embody one, and you need to try to remember that in highly emotional times, you're likely to veer off that path.”— Warren Buffett and Charlie Munger

Leadership & Management · Psychology & Behavior · Philosophy & Reasoning

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Earned status beats financial status

“Principles for younger self on income generation: Create value, receive value. The more value you create, the more you receive back. Find out what your boss hates doing and take it off their plate. Be a good human: hold doors, make eye contact, be on time, be kind. Work hard first, work smart later. Build storytelling skills. Build a reputation for figuring things out. Dive through every cracked open door. Even if there's a glimmer of opportunity, jump through it.”

Business & Entrepreneurship · Leadership & Management

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7 principles for value creation