Algebra of Wealth Formula

Scott Galloway's framework for building wealth combines practical financial advice with life wisdom. Here's his formula for creating wealth over time.

Core Components of Wealth Building

• Focus: Find what you're good at and commit to mastery

  • Don't pursue side hustles - invest extra effort in main career
  • Choose less sexy industries for higher returns
  • Become exceptional at one thing rather than average at many
  • Workshop your twenties to find your talent

• Stoicism: Control what you can control

  • Accept what you can't change, focus on your response
  • Develop emotional discipline around money
  • Live below your means
  • Don't try to impress others with consumption

• Time: Leverage your greatest advantage

  • Start saving and investing early
  • Let compound interest work in your favor
  • Recognize time moves faster than expected
  • S&P returns ~11% annually since 2008 (8x every 21 years)

• Diversification: Create financial resilience

  • Don't put everything in one investment
  • Build "kevlar" protection against market volatility
  • Spread risk across multiple assets
  • Learn from mistakes of concentrated positions

Key Principles

• Wealth isn't about income, it's about spending habits

  • Develop a savings muscle early
  • Resist lifestyle inflation
  • Avoid unnecessary luxury purchases
  • Save consistently over time

• Focus on industries with high employment rates

  • 98% of sectors have 90%+ employment
  • Less glamorous industries often have better returns
  • Pursue mastery in practical fields

• Build economic security before pursuing passion

  • Passion follows mastery
  • Financial security enables pursuit of interests
  • Create stability first, then explore options

• Deploy capital consistently

  • Regular investment in diverse assets
  • Keep adding to investments over time
  • Let money work while you sleep
  • Build an "army of capital" fighting for you

The framework emphasizes patience, discipline, and long-term thinking over get-rich-quick schemes or following passion without practical consideration.