Professor Scott Galloway's recent post called "The Algebra of Wealth" makes the argument that there are four key factors in the creation of wealth: focus, stoicism, time, and diversification. Some of you may argue with his points around diversification. I've heard Warren Buffet and Charlie Munger say before that diversification is really just admitting that you have no idea what the hell you're doing. Because if you did, you wouldn't need diversification to protect you.

That said, I like a lot of the points that Galloway makes on his blog. For one, he calls bullshit on the age-old advice that you should just "follow your passion." Finding something you love to do is important and ideal. I feel incredibly fortunate that I found something (there were pivots) that I want to be my life's work. But that doesn't mean that I didn't and that I don't think about money. As I've said before, I never understood why money is often a taboo topic in architecture schools.

Galloway also takes a stab at defining, what is rich?

"I know a lot of people who make an extraordinary amount of money, but few people who are rich. Rich is having passive income greater than your burn. People on a path to money focus on their earnings; people on a path to wealth also focus on their burn. Joseph Heller said, "It takes brains not to make money." (Note: I think he was casting a favorable light on his starving artist friends). This may be true, but it definitely takes brains to hold onto it (i.e., money).

Professor Scott Galloway's recent post called "The Algebra of Wealth" makes the argument that there are four key factors in the creation of wealth: focus, stoicism, time, and diversification. Some of you may argue with his points around diversification. I've heard Warren Buffet and Charlie Munger say before that diversification is really just admitting that you have no idea what the hell you're doing. Because if you did, you wouldn't need diversification to protect you.

That said, I like a lot of the points that Galloway makes on his blog. For one, he calls bullshit on the age-old advice that you should just "follow your passion." Finding something you love to do is important and ideal. I feel incredibly fortunate that I found something (there were pivots) that I want to be my life's work. But that doesn't mean that I didn't and that I don't think about money. As I've said before, I never understood why money is often a taboo topic in architecture schools.

Galloway also takes a stab at defining, what is rich?

"I know a lot of people who make an extraordinary amount of money, but few people who are rich. Rich is having passive income greater than your burn. People on a path to money focus on their earnings; people on a path to wealth also focus on their burn. Joseph Heller said, "It takes brains not to make money." (Note: I think he was casting a favorable light on his starving artist friends). This may be true, but it definitely takes brains to hold onto it (i.e., money).