Scott Galloway’s Advice To Make Millions In Your 30s & 40s

Scott Galloway’s Advice To Make Millions In Your 30s & 40s

Don't follow your passion (00:00:00)

  • Don't follow your passion, follow your talent.
  • The sexier the business, the lower the return on investment.
  • Find your talent and develop mastery in it.
  • Mastery will bring you economic success, camaraderie, prestige, relevance, and joy.
  • The key is finding your talent and committing to developing mastery.
  • Mastery in any field with a high employment rate will bring you financial security, camaraderie, prestige, relevance, and joy.
  • Don't be afraid to experiment and try different things in your 20s.
  • Find what you're good at and become great at it.

Reverse engineering $160M exit (00:03:08)

  • Scott Galloway's book, "Algebra of Wealth," has become a number one bestseller on Amazon.
  • Galloway credits his success to his team's hard work and his desire for external affirmation.
  • The book explores the common traits between wealthy individuals and those who are not.
  • Galloway used a study comparing companies sold for high and low valuations to shape the business model for his company, L2.
  • He focused on creating a niche, recurring revenue, technology incorporation, international expansion, and defensive intellectual property development.
  • Galloway worked tirelessly in his 40s and 50s to achieve financial security and eventually sold L2 for $160 million.
  • To make millions in your 30s and 40s, Galloway advises focusing on data collection and analysis.
  • Businesses that can collect and analyze more data than their competitors will be more successful.
  • L2 was able to sell for eight times its revenue due to its extensive data collection on competitors.

How to keep top talent in your company (00:07:30)

  • Pitch to potential employees that they will work hard and be rewarded with economic security and increased currency in the marketplace.
  • Offer equity or participation in book deals to create economic upside for employees.
  • Prioritize retention of employees by creating an environment where they want to stay.
  • The number one source of retention is having a friend at work.
  • Encourage employees to socialize and build relationships with each other.
  • This strategy may not be scalable beyond 50-100 employees.
  • HubSpot has created a free business ideas database.
  • The database contains over 50 curated business ideas from the podcast's archive.
  • The database can be downloaded by clicking the link in the video description.

I'm not your friend (00:11:12)

  • Avoid trying to be friends with your employees.
  • Maintain a healthy sense of boundaries between work and personal life.
  • Leave social events before they become chaotic.
  • Realize that as a parent, your role is to be a parent, not a friend.
  • Draw a clear distinction between work and fun with younger colleagues.
  • Focus on building a personal brand and becoming a public figure.
  • Write books and create content that establishes your expertise.
  • Leverage your personal brand to generate financial success.

Scott's best and worst hedge fund deals (00:13:41)

  • After being kicked off the board of Red Envelope, Scott Galloway filed a proxy to replace the entire board with his own slate.
  • He received only 12% of the vote and learned that the world did not want him involved in public companies.
  • Six months later, a hedge fund approached him to rattle the cage of some companies they had stakes in.
  • Galloway's first successful activist investment was in United Retail, a plus-sized clothing brand, where he built their website and replaced the board, causing the stock to rise from $2 to $8.
  • He repeated this success at Sharper Image and Gateway Computer, never losing money in these ventures.
  • Galloway then raised $700 million and became the largest shareholder in the New York Times, joining their board.

Losing $10M every day (00:16:20)

  • Galloway lost $10-12 million of other people's money daily during the great financial recession.
  • The company he was on the board of almost went bankrupt due to the sudden stop in advertising revenue.
  • Galloway decided to leave activism as he didn't enjoy being combative and wanted to focus on making a living.
  • Galloway's career journey involved various chapters and experiments.
  • He agrees that people's 20s should be spent discovering their interests and strengths, but his exploration extended beyond his 20s.

Handle triumph and disasters the same way (00:18:14)

  • Be humble during success, as much of it is not due to personal merit.
  • Be forgiving of yourself during failures, as much of it is not due to personal faults.
  • Stoicism teaches to treat triumphs and disasters as imposters, maintaining humility in success and avoiding excessive self-criticism in failure.
  • Stoicism teaches how to apply its principles to daily life.
  • Stoicism can help people deal with success and failure in a balanced way.

If you can't fix it, you have to stand it (00:20:54)

  • Focus on the things you can control, such as your emotions.
  • Remember that everyone will eventually die and that what others think of you won't matter in the long run.
  • Focus on your relationships with your spouse and children, as these are more important than what others think of you.
  • Consider quitting social media if it is negatively affecting your mental health.
  • Be mindful of the content your children are consuming on social media, as it can have a negative impact on their mental health.
  • In your 30s:
    • Focus on building your skills and network.
    • Take risks and don't be afraid to fail.
    • Invest in yourself and your education.
  • In your 40s:
    • Focus on building your wealth and career.
    • Start a business or invest in real estate.
    • Save for retirement and invest in your future.

Lessons about happiness from the dying (00:24:28)

  • People who are near death often regret not staying in touch with friends, not living their own lives, and being too hard on themselves.
  • Focus on being happy and forgiving yourself.
  • Stoicism: life is about how you respond to events, not the events themselves.
  • Be humble and recognize that success is often due to external factors, not just personal skill.
  • Ignore the market when it tells you you're a failure.

Statute of limitations on suffering (00:25:51)

  • After experiencing failure or setbacks, it's important to put a statute of limitations on your suffering and move on.
  • Don't get stuck in a cycle of self-pity and blame.
  • Seek help if you're unable to move on within a reasonable timeframe.
  • Time goes fast, and skills atrophy if you don't keep moving forward.
  • Churchill: the key to success is the ability to move through failure without losing enthusiasm.

Where Scott steals his powerful phrases (00:28:57)

  • Scott Galloway is skilled at using sharp words, phrases, and examples in his communication.
  • He draws inspiration from various sources, including George Carlin, Ricky Gervais, Michelle Wolf, Muhammad Ali, and Madeleine Albright.
  • Galloway believes in surrounding oneself with intelligent young people to gain different perspectives.
  • He emphasizes the importance of truly absorbing and incorporating inspiring ideas into one's own thinking and communication style.
  • In your 30s:
    • Focus on building your skills and expertise in a specific field.
    • Develop a strong network of mentors, advisors, and peers who can support and challenge you.
    • Take risks and experiment with different opportunities.
    • Be willing to work hard and hustle to achieve your goals.
  • In your 40s:
    • Continue to build on your skills and expertise, but also start to delegate tasks and responsibilities to others.
    • Focus on scaling your business or career to the next level.
    • Invest in your personal and professional development.
    • Give back to your community and industry.

Shaan opens his notes app of funny phrases (00:33:09)

  • Shaan collects funny phrases out of context.
  • Examples of funny phrases:
    • Someone who is thick is built like a baguette.
    • To address an avoided topic: "I'm going to address this like an envelope right now."
    • For CEOs with a terrible vision of the future: "If this CEO was the shooter at JFK, he would have died of natural causes."
  • Shaan loves these little phrases and sentences.
  • Shaan introduces the topic of Scott Galloway's advice on making millions in your 30s and 40s.

Scott's anti-excited list (00:34:52)

  • Scott is not excited about current events, products, or trends.
  • He is more focused on the positive aspects of his life, such as his family, friends, and work.
  • Scott believes that grief is a sign of love and loss, and that it is important to appreciate the good things in life.
  • Be a category of one.
    • Don't try to be the best at something that already exists.
    • Find a niche where you can be the best in the world.
  • Be a connector.
    • Build relationships with people who can help you achieve your goals.
    • Be generous with your time and resources.
  • Be a learner.
    • Never stop learning new things.
    • Be curious about the world around you.
  • Be a hustler.
    • Work hard and never give up on your dreams.
    • Be willing to do whatever it takes to succeed.
  • Be a giver.
    • Give back to your community and the people who have helped you.
    • Be a positive force in the world.

“Go live in a city” (00:37:33)

  • Opportunity is a function of density.
  • Get to a place that is crowded with success.
  • Two-thirds of economic growth will happen in just 20 cities.
  • If you're ambitious, get to the biggest city in your nation.
  • Playing against the best players in the world elevates your game.
  • Surround yourself with people who inspire you and elevate your game.
  • Find people you want to be like and establish friendships with them.
  • Rise or fall to the level of your peer group.

Opportunity in America v Europe (00:39:50)

  • The US is the best place to make money, while Europe is the best place to spend it.
  • The American economy is more open to risk-taking and failure than the European economy.
  • Americans are more likely to praise people who try something new, even if they fail, while Europeans are more likely to chastise people who stick out.
  • The American acceptance of failure is unique and allows people to take more risks and start more businesses.
  • Galloway's strategy has been to start nine businesses, get two wins, and move on when necessary.
  • People are more likely to fund someone who has failed in the past as long as they treated their investors well and didn't do anything unethical.
  • Galloway believes that the American acceptance of failure is one of the things that makes the US economy so successful.

The fallacy of hard work over time (00:42:30)

  • Hard work is crucial for success, but working excessively long hours consistently may not be necessary or sustainable.
  • Focus on a few important tasks and delegate responsibilities to others to enhance productivity.
  • Achieving a balance between being in the top 1% and having a well-rounded personal life is unrealistic for most individuals.
  • To reach the pinnacle of success, one must either fully commit to their career or adjust their expectations.
  • While hard work is essential, it should not compromise one's health or relationships.
  • According to Scott Galloway, achieving a perfect balance between work and personal life is a myth.
  • To gain significant influence or financial security, individuals may need to prioritize their career over balance for an extended period.

Money does buy happiness (00:46:56)

  • Financial security is crucial for men, as it impacts their overall well-being and can lead to negative consequences such as health issues and relationship problems.
  • Money does contribute to happiness, with middle-income individuals being happier than those in poverty, and wealthy individuals being happier than those in the middle-income bracket.
  • However, there are diminishing returns to happiness beyond a certain level of economic security.
  • Prioritizing relationships and life experiences over the pursuit of money and success is essential for a fulfilling life.
  • Scott Galloway advises individuals in their 30s and 40s to make the most of their time, cherish relationships, and seek help for mental well-being if needed.

The Algebra of Wealth (00:52:20)

  • Focus on your talent and develop it.
  • Work hard in an industry that pays well in your 20s.
  • Develop the habit of saving early and spend less than you make.
  • Avoid unnecessary consumption and don't try to impress others.
  • Start saving and investing early, even small amounts can grow significantly over time.
  • Diversify your investments to reduce risk.
  • Take advantage of the power of time and compound interest.
  • Remember that getting rich slowly is better than not getting rich at all.
  • The formula for wealth: Focus + Stoicism x Time x Diversification.

If you have a side hustle you need a better main hustle (00:55:33)

  • Focus on mastering one skill or industry, rather than pursuing multiple side hustles.
  • Choose an in-demand industry that may not be glamorous but offers high demand for skilled individuals.
  • Find something you can excel at and develop a passion for.
  • Practice saving more than you spend and diversify your investments.
  • Invest your savings and let them grow over time to build wealth.
  • Scott Galloway, a renowned business strategist, provides guidance on wealth creation for individuals in their 30s and 40s.
  • Galloway's book, "The Algebra of Wealth," offers insights into wealth creation.
  • Galloway stresses the significance of receiving affirmation and support from others in achieving success.

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