The Algebra of Wealth: A Simple Formula for Success

Temperance is to me the most important virtue because it is the one most tested by modern culture. Capitalism is fueled by our lack of self-control, our obsession with status and consumption. And not just in the obvious sense of super-sized fries and luxury handbags. Western society encourages indulgence not only in spending but also in emotional o

The more situations in which we can train ourselves to make the desired habitual response, the more cognitive and emotional energy we have to take the reins on the most important decisions and reactions, and the most difficult ones.

Capitalism’s genius is inventing new things for us to spend money on that feel like needs, not wants.

(A survey of 121 studies3 found that a variety of popular diets, no matter what theory they promoted or which celebrity promoted them, showed no effect on weight after a year.)

Another tool to consider is Gallup’s CliftonStrengths,

We cannot control our environment, but we can control how we respond.

As Carl Jung put it, “You are what you do, not what you say you will do.”

VALUE = (Future income + Terminal value) × Deduction for risk

Morgan Housel put it, “Doing something you love on a schedule you can’t control can feel the same as doing something you hate.”