My First Million
The best business ideas come from noticing what's working and doing it better, faster, or for a different audience.
“I am the safety net”
What It Means
Personal earning ability and skills are more reliable than external financial safety nets
Why It Matters
Enables more aggressive financial strategies by reducing psychological dependence on savings
When It's True
When someone has proven ability to generate income and rebuild wealth through their skills
When It's Risky
During health crises, major life changes, or industry disruptions that could impact earning ability
How to Apply
Evaluate your own skill-based earning potential when making investment decisions
Consider human capital as part of your overall asset allocation
Use this confidence to take appropriate risks while maintaining basic emergency funds
Example Scenario
“Entrepreneur feels confident investing aggressively in growth assets because they know they could rebuild wealth through starting another company if needed.”
Related Knowledge
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.
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.