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41 Comments

If you're so smart how come you're not rich?

Does anyone else feel this way?

I don't know about you, but I am smart. I know I'm smart, I am told that I am smart, I do smart things but . . . I am also old, and all my life I have worked (mostly) for people who were not smart as me, and somehow they:

  • were my boss

  • had a better/faster career

  • or .... they owned the company

I am old now, but I can still kick some ass, and that's what my intention is.

When I was younger I was:

  • insecure: some of that shit still lingers.

  • anxious: yeah, this is related to the shit above, but I wanted to highlight it. And while I am over it, some of that shit still lingers

  • more smarterer #LOL

  • more courageous, in a way. Now that I am less anxious and more secure, I seem to have lost the hump!

Any tips for me how to overcome the snart-complex, kick my own ass, and start making money?

  1. 32

    I am also old

    looks at profile and sees you're 38
    looks at self
    cries

    First of all, 38 is not old! Statistically, most successful entrepreneurs are older than you are. The average successful entrepreneur is actually ~45 and older folks are nearly twice as likely to build high value businesses than the younger generation.

    Now that we have that out of the way...

    I share a lot of this sentiment. There are plenty of examples of people building massive fortunes by happenstance, but for most of us, that doesn't happen, and certainly isn't something we should plan on.

    There are a few tips I've learned in my "old" age:

    1. Find a niche that you are truly passionate about. Learn everything you can about it, be the person who knows it the best. Then either develop a novel product in that niche or be a consultant. This is what I've done: I spent 15 years building / leading software startups and now I help companies that don't know how to build software crush it.

    2. Network really, really well. Meet tons of people and keep in touch with them. I am terrible at self promotion, but of the millions of dollars that have gone through my hands the majority of it has come from knowing the right people. This is why the American dream is bullshit -- it's not just about working hard, you really have to be connected to decision makers. It takes time and effort, but anyone can do it. By many definitions, I'm an introvert: I find social interactions exhausting; but I've learned that so much of my career depends on this that over the last 5+ years I've really invested in learning how to (to quote Dale Carnegie) Win Friends and Influence People (seriously, if you haven't read that book, do it -- it's 100 years old now but as relevant as ever).

    3. This one is a bit controversial, but: lie. Or maybe a different way of looking at it: "fake it till you make it." I have always seen things as black and white; honest or dishonest; but the reality is that the world is shades of grey and not everyone sees the world the same way as I do. That said, be careful because nothing turns me off to someone more than knowing they are full of shit. It's an art.

    4. Go work for one of the FAANG companies, take your $250k salary (and equity) and invest it.

    EDIT:

    1. Be comfortable taking risks. Not all of them will pay off; in fact most won't, but if something does, it can pay back tenfold.

    2. Diversify. Don't put all your eggs in one basket, but also don't spread yourself too thin. Try a few things, see what sticks, ditch the things that don't work and invest in the ones that do.

    That's probably just the tip of the iceberg, but those are a few things that come to mind for me.

    1. 3

      LOL. Thank you, good insights there!

      1. 3

        @ryanvanderpol's answer is a very, very good answer. I always like to sum things up, and in my mind it's this. You should translate the following to something that makes sense for you in your life.

        1. Make or buy things so you own things that make money.

        OR

        2. Convince people who own things that make money to give you money.

        Depending on your circumstances [2] might be easier than [1], but eventually you will want to get to [1].

        Notice I didn't say how much money in either case.

        An e-book and shares in an index fund belong to [1]. Having a job or freelancing belongs to [2].

        Starting a company is [1] and [2] combined.

        I'm 34 soon if that matters to you. I've mostly been successful at [2], but I keep taking shots at [1].

    2. 1

      I totally hate FAANG companies and their business model, recollecting personal data and making some shady stuff with it, I would never work there.

      I rather prefer building my SaaS that gets me 500$/month and can grow then working there.

      1. 2

        No argument from me on that. There's a reason why I have never and will never work for one of them, but the fact is they pay really well, and OP wants to make money for being smart ¯\(ツ)

        1. 1

          Yea, actually you dont need to be smart, you just need to pass the interview, do your job well, and have the right soft-skills.

          Why do people think that people working at FAANG are superhumans or something like that, their just normal people, with degree or without it, their just put in the time to crack the interview, e.g leetcode.

          For me, working for someone else isn't smart, that's being average.

          Building your own stuff, thats smart!

  2. 6

    I'll answer this with the assumption that you are in fact smart.

    Most likely the reason you're not rich yet is because you're not spending enough time doing. You're smart, so you rather spend time thinking about stuff, instead of literally realizing ("bringing into reality") your ideas.

    And there can be again a few reasons, why you're not spending enough time doing:

    1. You're too smart and are talking yourself out of your endeavors again. You're theorizing, why it won't work at some point and always finding a logical reason for that.
    2. You're afraid: What if this, what if that? Again, usually, those questions and doubts come up, because you're thinking too much about it
    3. You're not effective/efficient enough in doing. Just because you're smart, it doesn't mean you know how to do effective work. It also doesn't mean you have the discipline to close YouTube for a full day. Or maybe you just have anxiety.
    1. 1

      Came here to say this. 👆

      It is the double-edged sword of intelligence.

      To add my 2 cents here:
      You can find a shortcut to 'doing' by partnering with a doer.

      • Someone you respect (and thus not undermine).
      • Someone you trust (so you're not afraid to share your ideas/vision/strategy).
      • Someone that is not afraid to tell you to make up your mind (so you actually make decisions).

      In any case. Good luck!

  3. 5

    the correlation between intelligence and "success" is actually pretty low in general.

    A big reason for that is because besides being good at your skill, you also need to be able to communicate effectively, market and sell yourself, learn to make connections and actively use these skills to build out a network.
    These are skills that you have to learn, not innate talents, but most people never bother to work on these.

    Intelligence is also an overused and over-glorified concept. All people have strengths in some areas and weaknesses in others. It's very hard to compare 2 people and say "one is smarter than the other".

    If it's just money you're after I would suggest doubling down on your career, make sure you deliver measurable results in whatever you do that can be traced back to business metrics. (aka "I increased page load speed by 20% by doing this and this resulting in a 10% lower bounce rate and a 2% increase in revenue in the following month"). Do this for a year and present yourself in that light and you'll be set. Get into the top 20% of your field and you'll make much much more than the average.

    If you want freedom and fulfilment starting your own company is a great idea. Just find a problem you're having and create a solution for it. The hard part is sticking with something for 2+ years with very little revenue, but if you can stick that out you'll already have done more than 99% of us.

    If you're looking to be more confident I suggest that you stop worrying about your intelligence and your age. Be comfortable with the fact that there will always be people who are better than you and that you'll never be good at everything.

    Finally, make sure you're not falling for the Dunning-Kruger effect. Intelligence is great but ultimately always trumped by knowledge. Good luck!

  4. 5

    I think being smart is not enough. You can be really smart and decide to live in the woods, as that might be best for the planet and for your being. You have to be driven to solve a specific problem or really have a reason to earn the money you dream of. Just saying "yeah, it would be nice to have $1mil" is not enough, you need to internally have a drive towards reaching that goal. You also must know that wanting something is not enough, you also have to take action and move towards your goal. Waiting for money to fall out of the sky is not going to get you any closer to your goal.

    The first question you have to ask is "do I really want to make money? why?". The answer could be as simple as to just prove yourself that you can.

  5. 4

    how many times have you failed?

    if the answer is < 3 that's your answer.

    the dumb people who try beat the smart people who are smart.

    got no tips. other than get some attempts under your belt.

  6. 2

    Smart(er) people may decide that the juice isn't worth the squeeze. If you have ever read "Your money or your life", one of the underlying themes is that we essentially trade money for life energy. A lot of smart people decide that being a business alpha ( e.g. VP of Engineering, CTO ) isn't worth time away from family. A lot of people simply don't have the time or do not want to trade their time to get money, either working for themselves or someone else.

    But maybe grounded in your question regarding the pursuit of a business, being smart means a lot of things. You can be mathematically smart and have low emotional intelligence. You may be really good at finance and accounting but have no idea how to convert a lead to a sale. Combine that with luck, timing, market trends, and connections, and you simply have to many variables to predict "riches"

    Success is like rolling a bunch of dungeons and dragons dice with each dice representing the variables above. Some people hold better dice than others. You roll them and you may or may not find success regardless of the dice you are holding.

  7. 2

    Are you handsome/beautiful to?
    .
    .
    You can't have all!

    1. 3

      oh god no! I am ugly AF!

      1. 3

        okay! You have still a chance to be succesful !😄

  8. 1

    Wow, so many good answers, I will just chip in with something that I realized and it changed me completely. I did exactly what I was told to do, worked hard, studies hard, was kind to people, read a lot, started and failed at startups, joined and quit corporates, learned new skills, taught myself coding, then design, then practiced sales & growth... well you get an idea, I did every single topic & advice you will get here or on any other forum and I am still not rich and successful. BUT! I realized why:

    1. First of all, there is no guarantee or exact steps you need to take to get there. Sometimes it's luck, sometimes privilege, sometimes opportunity or a person you meet in your 40s or a lottery ticket. Luck, location & timing play a tremendous role here.

    2. Most of people chase success & money instead of focusing on a craft they like and enjoy. Which is not their intrinsic motivation. Which means they give up easily. Which results into unfulfilled potential & projects. People who enjoy the process, do so despite being looked down at by others, earning nothing for years, no status game for decades, no insta-dopamins, no Techcrunch article and that's why they succeed, cause they are not doing it as a status / wealth chase. Those who do usually give up very early. Naval talks about it here: https://pca.st/uvtxuiqv

  9. 1

    Lofty goals are overwhelming, so I like to break them down into itty-bitty pieces. I then slowly and dramatically check the item off as I get them done. The physical act of writing that checkmark is ridiculously satisfying.

  10. 1

    There are 2 "smarts", like in school: "code-smart" and "business-smart".

    I'm poor because I'm just "code-smart" and I'm a really mediocre coder :(((

  11. 1

    What does "smart" mean? There are many different types of intelligence (verbal, mathematical, spatial, etc.). What's the most important type of intelligence that correlates with success in entrepreneurship? Intrapersonal intelligence, or understanding of oneself! You'll notice in the comments that besides the concrete steps people suggest about starting a business and creating something of value, they're all describing qualities of emotional intelligence like patience, perseverance, dealing with failure and frustration, etc.

    I suggest you read the book Secrets of the Millionaire Mind! :) I also like Awaken the Giant Within by Anthony Robbins.

  12. 1

    How many times have you tried?

  13. 1

    Young son ――

    patience you must have.

  14. 1

    Here's what helped me: be humble and admit to yourself you know nothing.

    Why is that important? If forces you to reach out to people, ask what they're doing, and to begin reading and consuming knowledge. Books, podcasts, blogs, everything.

    Before our accounting business, I provided financial consulting to executives and would provide hourly consulting. One day after I came home frustrated after sitting at a client site for 8 hours, my wife said to me, "Stop trading your time for money. Your a business".

    Light bulb moment occurred. She was right....

    I asked myself, "Why didn't I know that? Why didn't anyone tell me?"

    And I realized at this point it was because I wasn't investing in myself. I wasn't reading. I had capped out.

    Take this opportunity to start reading books, listening to podcasts, and most importantly, taking actions. Take a few risks.

    Enjoy the process of learning again. 🙂

  15. 1

    eventually, you will figure out that how rich you are, has little do with how smart you are.

  16. 1

    Most of the smartest people aren't particularly rich.

  17. 1

    This is more interesting:

    If You’re So Smart, Why Aren’t You Happy?
    https://nav.al/smart

  18. 1

    Old fart her as well, currently 41. However, remember that Colonel KFC Sanders hit the jackpot with his chicken business when he was close to 70! You are never too old, but if you are than it´s by your decision.

    When I was young I was interested just in music, even sung in a Metal band and released a few records. Getting drunk and getting laid were my only concerns, not necessarily the future or making it big somewhere as a CEO.

    Beside that, it´s also a matter of where you grow up and in what surroundings. As for me, a small city in Southern Austria with everything depending on the local steel plant wasn´t a good weay to start.

    Remember, there are people out there that starfted with less, were 100 times dumber and still made it somehow. It should be a call to change if you haven´t made it yet. That and a motivation. ;-)

  19. 1

    It's easy, money is not proportional to your intelligence.

    1. 1

      Actually some of it is. Income is positively correlated with IQ (tho not as strong as people may think). Wealth isn't (apparently).

      1. 1

        Yep, you said it, if you work for someone.

        And BTW, i'm totally against the concept IQ, you can't measure intelligence, it's impossible, its just a flawed system.

  20. 1

    Being smart is only one face of the cube.

  21. 1

    I’m going to offer you some slightly different advice than I’m reading in the comments. First, words matter. Alway remember that and choose yours wisely in every setting. When the avg person reads a post with “how come” in the title, “smart” is not the first description that pops in their head.

    It’s also worth noting that most smart people, just like most rich people, don’t have to tell anyone. They also realize that while they may be smart in some areas, they’re relatively ignorant in others. The same goes for their definition of rich, and they usually recognize that no matter how smart or rich they are they will always find someone smarter or richer. Viewing it as a status is less likely to help you succeed than thinking of it as a characteristic that allows you to scale your success.

    In addition, if your goal is to just get rich then chances are you’ll never reach it. To break it down in product terms, that goal is too broad. What is your definition of rich, what are the thousands of steps you’re going to take to get there, who is providing your riches, why are they giving it to you, how will you encourage them to continue? Those are just a few of the many questions you need to answer.

    My recommendation for you is to find a project/idea/career that makes you happy. One that provides you with luxuries like ownership of your time, and then dive head first into it and give it everything you have. If it succeeds, great. If it doesn’t, take what you learned and put to toward the next one. Rinse, and repeat.

  22. 1

    Are you able to navigate life in such a way that you're able to achieve all your goals?

    Simple as that.

  23. 1

    Hey SMAAART - It's about perspective, mindset, and ability to match the effort with the results you want. Smartness has its category - meaning you can't ask a fish to climb a tree. If you want to sell pencil-drawings, then you should be holding a pencil and not a paint brush.

  24. 1

    That's a very interesting choice of words and statements from someone who is supposed to be so very smart.

  25. 1

    Read "Millionaire Fastlane" by DeMarco

  26. 1

    Hahah, that's classy!

  27. 1

    "Success occurs when opportunity meets preparation"

    I know plenty of smart people that haven't had the opportunity and plenty of opportunistic people that don't have the smarts.

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    This comment was deleted 4 years ago.

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    This comment was deleted a year ago.

    1. 2

      Haha! Love that subtle burn 🔥

      Although going off of his IH username and his flippant tone, I'm sure @SMAAART is not being completely serious about being the smartest person in the world :)

      1. 1

        I just actually laughed out loud at this =D

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    This comment was deleted 3 years ago.

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    This comment was deleted 7 months ago.

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