As the right-hand man of Warren Buffett, this 98-year-old man insists that if you “save” these 3 things, you can hardly change your life.
Charlie Munger is one of the most famous investment moguls of all time. Since meeting and working with Warren Buffett, he has always been an effective right-hand man and a wise partner of the sage of Omaha, contributing to building the mighty Berkshire Hathaway empire as it is today. At the age of 98, he is holding an estimated fortune of $ 2.3 billion (according to Forbes 2022).
With his experience in the book “Poor Charlie’s Almanack” Munger reveals the perspective of life through the eyes of a financial expert. Accordingly, he said if you want to become rich but don’t have money and relationships, you have to be more generous with these 3 things:
1. Generosity in mentality
The first generosity mentioned in Poor Charlie’s Almanac is psychological generosity. The author’s intention is to keep the mind stable, give yourself more opportunities and not be too strict about everything.
The reason is very simple, when a person does not have money and relationships, you will easily fall into a state of sadness. If you are too strict with yourself, just one thing is not as planned, your mentality will easily collapse. A person who does not have a financial launch pad, whose relationship is easily broken can hardly do great things.
Munger also had an unsatisfactory starting point. When he was a lawyer, he also fell into poverty, had no relationship, had no money, and carried more debt. However, he was very generous in his mind, giving himself more opportunities to relax and stabilize his mind. This helps Munger calmly handle the difficulties that are happening even though he has no money or relationships.
At this point, many people will say that at the end of the wall, it is difficult for anyone to be so calm. But in the book Poor Charlie’s Almanac mentioned a quite effective method. That is to think about 10 years from now, if you have a generous heart, what results will you get. At the same time, you also think about that period of time, what if you keep narrowing your mind in a gap?
From here, make a comparison to see that if you are generous in your mind, you will have better results that gradually overcome narrow thoughts.
2. Be generous to everyone
The second generosity mentioned in Poor Charlie’s Almanac is being appropriately generous to everyone. The less money and relationships you have, the more generous you have to be to people to be more likely to expand the relationship. The key to building a relationship is to show kindness to others.
Usually, we often have the mentality of receiving first for later. That is, you want others to be generous to you. After receiving kindness, you will help in return. In fact, this mindset greatly influences relationship building. If the other party also has such thoughts, harming people will be very difficult to reconcile.
So how do we overcome this mentality so that we can actively be generous with everyone? One method mentioned in Poor Charlie’s Almanac is thinking in terms of benefits.
This means you can think ahead about the benefits you’ll get if you take the initiative to be generous to someone in advance. There is a high probability that you will get more generosity from the other side. So as long as we think this way, we will be generous and proactive to connect with people.
3. Be generous with knowledge
The third generosity mentioned in Poor Charlie’s Almanac is that of intellectuals. To date, Munger has mastered more than 100 mental models. If he was not willing to generously acquire knowledge, he could hardly have done this.
Munger and Buffett spend 70% of their sleepless time reading, a sign of intellectual generosity.
The generosity of knowledge can make you rich faster. Because the basic logic of becoming rich is actually the result of a large amount of knowledge accumulated by you.
If you are not a person who has a habit of reading, you can still start the habit today. The content of the book Poor Charlie’s Almanac mentioned the level reading method. Reading a book is like climbing a mountain. First, you read 10 pages a day. After one tier, you move up to reading 20 pages a day. Gradually increase the number of pages, once a habit is formed, your knowledge base will naturally expand.