Invert Part 1: How Not To Make Money

October 30, 2012

I’ve listened & read so much Charlie Munger recently that I can hear his voice in my head. One of his famous sayings is borrowed from mathematician Jacobi: “Invert, always invert.”

Charlie mentions how a lot of problems can be solved not by figuring out a solution, but rather what not to do. We should think through problems forwards & backwards.

One of my favorite Munger speeches (they’re all my favorite) is: Prescription for guaranteed misery in life. He quotes Johnny Carson’s previous speech on things to avoid & adds his own recommendations.

Anyways, in that spirit – here’s my: How Not To Make Money.

My main goal is to be financially free by making my own passive income streams. Thus, these tips are focused on that rather than for 9-5 workers.

1. Don’t do any work
2. Don’t focus on cash producing activities
3. Don’t sell anything
4. Don’t help other people solve their problems
5. Don’t deserve it (borrowed from Munger)
6. Don’t try anything different or new
7. Be distracted by news, current events, gossip, etc
8. Sleep all day
9. Don’t learn how to invest money in stocks
10. Don’t learn personal finance lessons
11. Always pay a higher price than the thing is actually worth
12. Fail slowly & less often
13. Don’t learn from other people’s mistakes
14. Eat a lot of sugary junk food often & induce lethargy
15. Be ultra pessimistic & lose all hope
16. Take each failure personally
17. Just know that success is only meant for others
18. Always take advice from family, friends & neighbors on making money
19. Get rich quick schemes really work, try all of them
20. Accumulate high credit card debt
21. Delay paying bills as long as you can & ignore taxes completely
22. Never read books written by successful people
23. If something has worked in the past, never repeat it

These are all the ones off the top of my head & it’s a little depressing that I do almost all of these activities!

Sometimes, it’s not what we should do but what shouldn’t that gets us where we need to go. Maybe this will be the kick in the ass I need. : )