My First Million
The best business ideas come from noticing what's working and doing it better, faster, or for a different audience.
Personal Capability as Safety Net
Viewing your own skills, knowledge, and earning ability as the primary financial safety net rather than relying solely on savings or investments.
Decision Rule
When evaluating financial risk, ask 'If I lost everything, could I rebuild it?' rather than 'Do I have enough savings to weather this?'
How It Works
Reduces over-conservative financial behavior by recognizing that human capital is often the most valuable and resilient asset, enabling more aggressive wealth-building strategies.
Failure Modes
Overconfidence in ability to rebuild during health crises or major life changes
Ignoring industry-specific risks that could impact earning ability
Underestimating psychological impact of losing accumulated wealth
Example Decision
“Entrepreneur decides to invest aggressively in growth assets because 'even if I lose this money, I'm confident I could rebuild it within 3 years using my business skills.'”
Related Knowledge
Most people should focus on starting and selling a business rather than stock picking for wealth bui
Investment education should focus on index fund basics while business education should focus on company building and exi
Wealth Preservation Framework
A conservative investment approach focused on maintaining purchasing power and reducing stress rather than maximizing returns, typically used after achieving a significant financial milestone.
Second Derivative Spending Rule
A cash management principle where you never spend business income directly, but only spend the investment returns generated from that business income.
Investment Thesis Litigation Framework
A systematic approach to evaluating competing investment or business theories by collecting multiple expert perspectives and weighing evidence like a legal case.
Systematically evaluate and optimize personal investment allocation through peer feedback
Clear understanding of current allocation, identification of blind spots, actionable feedback from trusted peers, and refined investment strategy aligned with goals.
Convert entrepreneurial success into sustainable long-term wealth
Financial independence where investment returns can fund lifestyle indefinitely without touching principal, plus continued income from new ventures.