The 5 High Income Skills I Wish I Knew at 21

Summary

This video script outlines five high-income skills for financial freedom and wealth-building. It emphasizes the importance of developing specific knowledge through personal obsessions, understanding the difference between being wealthy and rich, leveraging time and resources, and building credibility through accountability. The script also stresses the significance of taking action over perfect planning, the power of grit in overcoming challenges, and the necessity of investing wisely for financial independence.

Takeaways

• 🎓 **Specific Knowledge**: Pursue what you're curious about and obsessed with to develop unique, non-replicable skills that are valuable in the market.
• 💼 **Understanding Wealth vs. Riches**: Aim for wealth, which is owning assets that generate income without constant work, rather than just having a high income.
• ⏰ **Time Freedom**: Money represents stored time. The goal is to increase output to buy time freedom, which is achieved by leveraging your efforts.
• 💡 **Types of Leverage**: Utilize labor, capital, code, and media to amplify your work and create wealth. Code and media leverage, in particular, are accessible and powerful in the digital age.
• 🔗 **Building Credibility**: Develop accountability and credibility by taking responsibility for successes and failures, which makes you more valuable and less replaceable.
• 🛠️ **Getting Started**: Focus on taking the first step rather than perfect planning. Action generates momentum and leads to learning and improvement.
• 🏆 **Grit**: Success often comes to those with the perseverance and resilience to keep pushing forward despite challenges and failures.
• 💭 **Overcoming Overthinking**: Shift from thinking about 'how' to 'starting'. Taking action on ideas is more important than having a flawless plan.
• 💰 **Investment Strategy**: Proper investment of money is critical for financial freedom. It's important to understand the best practices for investing to secure wealth.
• 🌟 **Adaptability**: Successful ideas often pivot from their original concept. Being adaptable and open to change can lead to breakthroughs and wealth creation.

Q & A

What are the five high-income skills mentioned in the script?

The five high-income skills mentioned are: 1) Developing specific knowledge, 2) Understanding the difference between being wealthy and rich, 3) Leveraging time and output, 4) Building credibility and accountability, 5) Focusing on getting started rather than perfect planning.

What is specific knowledge according to Naval Ravikant?

Specific knowledge is a combination of all your talents, interests, and experiences that makes you unique. It's rare, invaluable, and cannot be easily replicated or replaced by others or automation.

How does the script define being wealthy versus rich?

Being rich is having a high income, but when you stop working, your income stops too. Being wealthy means owning assets that generate money even when you're not actively working.

What are the four types of leverage mentioned in the script?

The four types of leverage are: 1) Labor leverage, 2) Capital leverage, 3) Code leverage, 4) Media leverage.

What is the significance of credibility in building wealth according to the script?

Credibility is significant because it makes you appear less replaceable, giving you more leverage and allowing you to offer more value. People are more likely to trust and work with credible individuals.

How does the script suggest overcoming the fear of failure?

The script suggests that failure is a part of life and that admitting mistakes and failures builds credibility. It encourages seeing failure as an opportunity to learn and improve.

What is the importance of taking action over perfect planning?

Taking action is more important than perfect planning because it leads to real progress and learning. The script suggests breaking the bigger picture into smaller sections to facilitate starting.

What is the role of grit in achieving success as per the script?

Grit is the ability to keep pushing forward even in the face of challenges and obstacles. It's the perseverance that plays a significant role in success more than intelligence.

How does the script explain the concept of leverage in relation to wealth creation?

Leverage amplifies your input or effort, allowing you to achieve a greater output. It can transform small efforts into large impacts, such as creating content or software that can reach millions with minimal additional cost.

What is the script's advice on investing money for wealth building?

The script suggests that investing money correctly is crucial for achieving real freedom. It recommends checking out a specific video to learn the optimal order to invest money in 2024.

How does the script describe the process of getting started on a new venture?

The script advises breaking down the process into smaller steps and focusing on taking the smallest step towards the most important goal. This creates a feedback loop that motivates continued action.

Outlines

00:00

💼 Developing Specific Knowledge for High Income

The speaker emphasizes the importance of developing specific knowledge to achieve financial freedom and work from anywhere. This type of knowledge is unique, not taught in schools, and is acquired through deep curiosity and obsession with a particular subject. The speaker's personal journey with video games led to a career in finance and content creation. Specific knowledge is a combination of one's talents, interests, and experiences, making it rare and valuable. It is contrasted with regular knowledge, which is common and easily replaced. The speaker advises building specific knowledge to stand out in the market and command a premium for one's skills.

05:00

💰 Understanding Wealth vs Riches and Leverage

The speaker distinguishes between being wealthy and being rich, highlighting that wealth involves owning assets that generate income without active work, unlike riches which rely on a continuous income from work. The concept of leverage is introduced as a means to amplify one's efforts and increase output. The speaker mentions four types of leverage: labor, capital, code, and media. Code and media leverage, in particular, are highlighted as modern ways to scale output with minimal additional cost, using examples like creating content once for potentially unlimited viewership. The speaker also discusses the importance of credibility, which is essential for success with leverage, and encourages embracing failure as a learning opportunity to build credibility.

10:00

🚀 Overcoming Inaction and Embracing Grit

The speaker addresses the common issue of overthinking and inaction, suggesting that focusing on starting rather than perfect planning is crucial. They recommend breaking down goals into smaller, actionable steps to create a feedback loop that fosters continuous action and improvement. The concept of 'grit' is introduced as a key determinant of success, defined as the perseverance to keep going despite challenges. The speaker contrasts the grit of successful individuals like Mark Zuckerberg and Steve Jobs with those who give up at the first sign of failure. The narrative encourages viewers to pivot and persevere, as many successful ventures have evolved from their initial ideas.

Keywords

💡Financial Freedom

Financial freedom refers to the state where one's income from investments or assets is sufficient to cover their living expenses without the need for continuous work. In the video, the speaker shares skills that led to their financial freedom, emphasizing the importance of generating income beyond a traditional 9-to-5 job.

💡Specific Knowledge

Specific knowledge is a unique combination of skills, talents, and experiences that cannot be easily replicated and is highly valuable in the market. The speaker illustrates this by discussing their obsession with video games in high school, which eventually led to a career in finance and content creation, showcasing how specific knowledge can be developed through personal interests.

💡Leverage

Leverage is the ability to amplify one's efforts to achieve greater results. The video discusses different types of leverage, such as labor, capital, code, and media, explaining how they can be used to increase output and wealth. The speaker uses the analogy of throwing pebbles into water to describe how leverage can turn small efforts into significant impacts.

💡Wealth vs. Rich

Wealth is defined as owning assets that generate income passively, while being rich refers to having a high income that ceases when work stops. The video emphasizes the importance of building wealth over just increasing income, as it provides financial security and the potential for passive income.

💡Accountability

Accountability is the willingness to accept responsibility for one's actions and their outcomes, both positive and negative. The speaker discusses how taking accountability for failures and successes is crucial for building credibility and trust, which in turn can lead to more opportunities and wealth.

💡Grit

Grit is the perseverance and passion for long-term goals despite obstacles and setbacks. The video highlights the importance of grit in achieving success, as it enables individuals to continue pushing forward even when faced with failure, which is a common theme in the stories of successful entrepreneurs like Mark Zuckerberg and Steve Jobs.

💡Credibility

Credibility is the quality of being trusted and believed in, which is built through consistent actions and accountability. In the context of the video, credibility is essential for gaining trust from others, which can lead to more opportunities and the ability to leverage one's skills and knowledge more effectively.

💡Investing

Investing is the act of allocating resources, such as money, with the expectation of generating an income or profit. The video touches on the importance of investing as a means to build wealth and achieve financial freedom, suggesting that without proper investment strategies, one's efforts to earn money may not lead to lasting wealth.

💡Passive Income

Passive income is money earned with little to no effort after an initial work investment. The video discusses how creating passive income streams, such as through investments or digital products, can lead to financial freedom by allowing individuals to earn money without actively working.

💡Time Freedom

Time freedom is the ability to manage one's time independently, without being constrained by the need to work for income. The video script mentions that having money essentially means having stored time, which can be exchanged for more freedom, highlighting the importance of time management in achieving financial goals.

💡Action

Action refers to the process of taking steps towards a goal, rather than just planning or thinking about it. The video emphasizes the importance of taking action over excessive planning, suggesting that starting small and iterating is more effective than getting stuck in the 'thinking zone' without making progress.

Highlights

Developing specific knowledge is crucial for financial freedom, which can only be learned by pursuing your passions and obsessions.

Specific knowledge is a combination of talents, interests, and experiences that make you unique and irreplaceable.

The law of supply and demand explains the value of specific knowledge in economics, where high demand and low supply lead to premium pricing.

Understanding the difference between being wealthy and rich is key; wealth generates income without constant work.

Leverage is essential for increasing output and includes labor, capital, code, and media as its types.

Code and media leverage, through software and content creation, allows for effortless scaling and zero marginal cost reproduction.

Building credibility is vital for success, as it influences trust and decision-making in business.

Accountability, taking responsibility for successes and failures, builds credibility and reduces replaceability.

Shifting focus from 'how' to 'getting started' is a key skill for turning ideas into action.

Grit, the ability to persist through challenges, is more important than intelligence for success.

Breaking down goals into smaller steps creates a feedback loop that motivates continuous action.

Investing money correctly is a critical component of building wealth and achieving financial freedom.

The video provides a guide on the optimal order to invest money in 2024 for financial success.

The importance of leveraging the internet for passive income opportunities, similar to traditional real estate investments.

The video discusses the concept of stored time and how money can be seen as a form of saved time, leading to freedom.

The necessity of taking action over planning and the impact of inaction on the success of ideas.

The video emphasizes the transformative power of admitting failures and learning from them to build credibility.

Transcripts

if you want to be financially free and

make the most amount of money in the

least amount of time I'm going to share

the five high- income skills that

allowed me to travel and work from

anywhere in the world the first Hingham

skill is developing specific knowledge

but specific knowledge isn't just any

type of knowledge you can't learn it at

school pick it up in a book or be

trained for it specific knowledge can

only be learned by pursuing things

you're curious about and irrationally

obsessed with I first discovered mine in

high school I was obsessed with video

games left for dead Team purches 2

Counterstrike I would spend entire

weekends cooped up at home in avoiding

hanging out with friends just to get an

extra hour in it was pretty unhealthy I

know but at the same time I was creating

videos about video games gaming montages

and compilations it sounds like a lot of

work especially on top of school and

classes but for some reason it never

felt like work to me I was just having a

bit of obsessive fun but it's exploring

these obsessions that led me to

eventually work on Wall Street and build

out this YouTube channel in retrospect I

realized that I love video games because

I was always chasing to get the highest

score and win I would practice the same

moves over and over just to improve at

each one which is exactly what you do in

finance and when you create content with

each work or video project that I

finished I learned something new about

financial analysis or content creation

about what worked and didn't work but

more importantly why it didn't work it

became like a a video game trying to

improve each time trying to get the

highest score and winning over time this

Obsession allowed me to build my

specific knowledge according to nval

raii Kant specific knowledge is the

combination of all your talents

interests and experiences it's what

makes you you it's your replaceability

Factor build your specific knowledge

because it's by definition something

that's rare invaluable and cannot easily

be replicated or replaced by others

including automation or AI in economics

this can be explained by the law of

supply and demand basically when you

have specific knowledge or skills that

are in high demand but there's a low

supply of it you can position yourself

to solve problems that few others can as

a result businesses and individuals are

willing to pay a premium for you on the

other hand regular knowledge is

something that can be taught at school

or learned from a book The problem is if

you can Master a subject just by reading

and studying it so can millions of

others and when there are millions of

others who can do the exact same thing

you will be easily replaced the next

high- income skill requires you to

understand why you want to become

wealthy instead of Rich if you're rich

you have a high income but when you stop

working your income stops too meaning

you will need to constantly trade your

time for income the problem is you only

have so many hours in a day which limits

how much you can earn the only options

are you have to work harder or work

longer neither of which sounds fun but

if you're wealthy you own assets that

generate money even when you're not

actively working when I realized this I

dedicated myself to building out this

next high income skill but first if you

want to build a wealthy healthy life

sign up for my free Weekly Newsletter

reinkable link below when it comes to

money most people Overlook how we

transfer time when you have money you

essentially have stored up time that you

can exchange this allows you to be more

free than someone who has no time AKA

they're so busy that they can't go a day

without working because they need the

money and the only way to get to this

place of time freedom is to

significantly increase your output so

you can buy it and to do this you need

to gain leverage basically Leverage is a

concept that amplifies everything that

you do imagine you're throwing pebbles

into a calm body of water each Pebble

you throw represents your input your

effort into whatever you're doing and

when your rock hits the water the ripple

effect is the output Leverage is what

can transform your Pebbles into Boulders

and 10x the size of your ripples

Nal V recan said there are four types of

leverages you can use but personally for

me only one worked the first is labor

leverage basically the ability to hire

people John rockerfeller once said I

would rather earn 1% off 100 people's

effort than 100% off my own efforts

having more people on your team allows

you to build your wealth and accomplish

more than you can ever do yourself the

second type is capital leverage

basically having access to money you can

pay for advertising Jo exclusive

networking club or even just invest in

assets that can grow over time chances

are the first two types of leverages

aren't accessible to most people because

of what they require but the next two

types of Leverage transform the

traditional way of doing things that

allows so much more wealth to be created

in the past two decades in the old days

you had to buy real estate to get

passive income while you sleep now the

internet enables the same effect the

third and fourth type of Leverage is

called code and media Leverage which is

creating software and creating content

respectively this allows you to scale

your output easily all you need to do is

produce something once and the impact of

it can compound over time with zero

marginal cost to reproduce it again

before the internet if I wanted to share

why pineapple pizza is amazing I would

need a physical place like a classroom

that maybe 30 people can fit inside of

and I would need to do it every single

time a new group of people wanted to

listen but now with content lever all I

need is a camera a computer record it

once and millions of people can watch

and listen but even before I started

making YouTube videos I still had media

leverage at the time I wasn't sure if I

wanted to put my face on the internet so

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there is one one significant problem

with leverage regardless of whether you

choose Capital labor code or media

leverage the problem is you will not

succeed if you lack credibility when you

hear that Jeff Bezos Bill Gates or Oprah

plan to start a new business chances are

you're going to believe that it's going

to be successful even before you learn

anything about it you attach trust

because these people in their names

their brands they carry a certain level

of power and credibility and to have

credibility you need to work on your

next High income skill building

accountability basically taking

responsibility for everything you do the

challenging part is is it's a

double-edged sword because you need to

take credit when things succeed but also

when things fail and I'll be the first

admit I failed plenty of times I've

started several businesses from clothing

companies to Tech startups that never

reached the amount of success I was

looking for but each time that that

happened I learned something new whether

I needed to reach better product Market

fit where I needed to prioritize my

distribution channels or being able to

admit that the product just sucked

Thomas Edison once said I have not

failed I have found 10,000 ways that

don't work the problem is we're socially

hardwired not to fail in public because

we don't want to be judged and

criticized but I think that's a missed

opportunity because failure is a part of

life and at least for me people who can

admit their mistakes and failures are a

lot more credible than those who hide

behind their reality at any moment when

someone else has to decide whether to

work with you or not that pivotal

decision is based on your credibility

the more credible you are the less

replaceable you seem giving you more

leverage and allowing you to offer more

value the next high- income skill is

what separates those who succeed and

those who fail so two years ago one of

my closest friends told me his dream of

becoming a writer he's been thinking

about this for years but he never knew

where to start he had convinced himself

that he needed someone or something to

guide him in the right direction and no

matter how hard I pushed him to

encourage him to start he just couldn't

he was stuck in the thinking Zone

basically it's the Zone where plans and

strategies are formed and one of two

things usually happen one you think you

need to craft a Flawless Plan before you

start to minimize failure and while you

come up with this plan the idea remains

in a state of theory and in action or

two you feel so great that you came up

with a perfect plan that you feel like

you've already accomplished it without

lifting a finger so you just end up not

doing anything the next hom skill

involves shifting Focus From the how to

Simply getting started for every person

that takes action there will be hundreds

of others who had similar ideas but just

didn't act on them you want to be that

one in 100 not the other 99 that are

looking and thinking that could have

been me I found that the easiest way to

start anything is by breaking the bigger

picture into smaller sections like if I

focused on the finished production the

first time I ever made a YouTube video

it would have been impossible to start

instead I just asked myself what can I

do right now to take even the smallest

step towards achieving the most

important goal my first step was

outlining the video idea then I planned

out each footage and then I recorded it

and so on this creates a feedback loop

that forces you to continue because

action generates quantity which

generates quality which generates

motivation which in turn can create more

action according to a 2007 research

study this next high income skill plays

a bigger role in success than

intelligence and it all begins with this

question do you think Mark Zuckerberg

was the only person to think of Facebook

or that Steve Jobs was the first person

to think I wish there was a way we can

carry our thousands of songs in our

pocket before Facebook there was frster

Myspace and second life before the iPad

there was yep creative Nomad and eye

audio so what was the one common High

income skill between Mark Zuckerberg and

Steve Jobs they had grit basically it's

the ability to keep pushing forward even

in the face of challenges and obstacles

let's say you spend weeks working on

something but it fails what do you do

chances are most people are just going

to give up because they don't want to

experience another failure after pouring

their heart into something again but if

you were gritty you'd know that you only

have two real options you can either

improve it or you can work on something

else some of the most successful

individuals in the world pivoted their

idea several times before it became

successful Instagram was originally an

app that let people make hangout plans

YouTube started as a dating site

Nintendo originally sold physical cards

but these skills are only one component

to Building Wealth if you don't invest

your money correctly you will never

achieve real freedom and I get it it's

confusing should you pay off your debt

first max out your 401K where should you

invest but it doesn't have to be

confusing check out this video to learn

the optimal order to invest your money

in 2024 and I'll even share what I'm

personally investing

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