42 Essential Takeaways for Wealth and Financial Freedom

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1. "He who gives the money has the power." When you give money, you gain control over the recipient.
2. Never trade reputation for money, as reputation compounds over time and cannot be regained.
3. Money loves speed, wealth loves time, and poverty loves indecision.
4. We can always make more money than we need, so we should prioritize learning and growth over short-term financial gains.
5. Someone who is self-made has often taken risks and learned to navigate uncertainty.
6. Where attention goes, money flows.
7. Your home life and business life must be aligned in terms of finances.
8. Ignore money advice from poor people, as they often lack the wealth and experience to provide accurate guidance.
9. It's always easier to buy than to sell, so be extra cautious when buying.
10. Money is fickle and sticks to the person who pays the most attention.
11. Poverty can teach valuable lessons, but we must learn to apply them to achieve financial freedom.
12. Frugality drives innovation, and constraints can lead to creative problem-solving.
13. Think twice before spending and once before investing.
14. Money flows to the person who needs it the least, and leverage comes from not needing the other person.
15. We make money, not the other way around.
16. It may be an amazing opportunity, but it's not necessarily our amazing opportunity.
17. Control the money flow wherever possible.
18. Always have a "oh" fund to ensure you have a safety net.
19. Ignorance is the biggest eroder of wealth, as not knowing how to make money can cost you significant amounts.
20. You get paid for the value you create, times your ability to negotiate, divided by how hard you are to replace.
21. Mistakes love a rush decision, so pause and think before acting.
22. Leverage comes from not needing the other person, whether it's a monetary need or a need for validation.
23. Markets take longer to adjust than expected and then move faster than anticipated.
24. Money is a game, and to win you must know you're playing one.
25. Don't bet the empire on a single opportunity.
26. Do a starter deal with new faces to mitigate risk.
27. Trust is worth more than a bigger return, and lubricates deal velocity.
28. Money is not a zero-sum game, and we can work together to create a win-win situation.
29. Never take a standard deal; always look for better terms.
30. Expect low risk, amazing returns.
31. Think in terms of how long an investment will take to double or triple, rather than internal rate of return.
32. Diversification is a hedge against ignorance, and it's only risky if you don't know what you're doing.
33. (Skipped)
34. Returns are in the terms, and understanding the terms of an agreement is crucial.
35. Use "house money" whenever possible, where you can recoup your principle and still have money in the game.
36. Always know how to get your money back, and make sure you have a clear plan.
37. Cash flow is King, both personally and professionally.
38. Buy for the long term, and always think about what you would do if you couldn't sell your investment.
39. FOMO (fear of missing out) means slow down and take a second to think before acting.
40. If you can't afford to lose the money, then don't use it.
41. Peace of mind can be bought and sold, and it's essential for making good decisions.
42. Diversification can be thought of both horizontally (across different industries) and vertically (across different capital stacks).

Source: 42 Recession Proof Money Hacks (2023), Alex Hormozi