It’s true, of course, that getting rich requires years of hard work. You’ll have to learn a lot, build skills, make the right decisions at the right time, and have a whole bunch of luck in the process. But if that’s all we focus on, we miss the most important aspect of how wealth is built: through compound growth.
This compounding happens in your choices, judgment calls, and financial decisions — but it also happens in the assets you own and, often, without you being fully aware of it, let alone doing anything to contribute.
After spending 5.5 years on the rollercoaster of building her own startup, Danielle Morrill ultimately sold the company with no big payday. Before that, however, she’d been the first employee at Twilio, a company that went public in 2016, and the growth of her share of that single stock was enough to retire.
Reflecting on the experience, Danielle writes:
After making my detailed spreadsheet it was undeniable: at a relatively conservative compounding growth rate, I could stop working and cover my expenses with my investment income and I would have more money than I’d ever need to spend in my life. It was very disorienting to have my net worth climb from something I hadn’t worked on since 2012, while my current efforts were amounting to nothing in economic terms.
Understanding that you’re most likely to build wealth on the back of something that grows exponentially is a huge perspective shift, but an important one to make. Otherwise, you might always be working on something, but be so busy hustling that you forget to build and hold stakes in ventures that can still work out after you leave them alone.
As you can see, getting rich is equally as much, if not more, about what you don’t do as it is about what you say yes to. The stock you didn’t sell, the side project you held on to, the old buddy you stayed in touch with.
In the same vein, it’s much harder to point to a set of wealth-building patterns than it is to spot what keeps people from getting rich and rid yourself of these behaviors. Once you’ve unlearned whatever wealth-rejecting habits you might have, all that’s left is to take action and wait for exponential growth to kick in.
Here are five of those habits I’ve spotted in myself and others over the years.