Live Below Income

A strategy for building wealth focused on maintaining lifestyle expenses below income, based on Scott Galloway's experiences and insights.

Core Philosophy on Wealth Building

• Living below means is critical for wealth creation
• It's not how much you make, it's how much you spend and your ability to create a delta
• Even extraordinarily talented people often struggle with living below means
• Financial security comes from consistent saving and investing over time

Key Components for Financial Security

• Create an "army of capital" through regular investing

  • Can start with as little as $50-100 per month
  • Put money in tax-deferred or tax-efficient vehicles
  • Diversify investments
  • Let time compound returns

• Focus on steady wealth building

  • Made more money from investing than from businesses
  • Emphasizes importance of tax-efficient investment vehicles
  • Values diversification over concentrated bets
  • Prioritizes not getting poor over getting rich quickly

Maintaining Financial Security

• Keep debt levels low or nonexistent
• Always maintain ability to start over if needed
• Focus on creating regular cash flow streams
  • Having steady income provides psychological comfort
  • Multiple income streams preferred over one-time windfalls
  • Regular cash flow helps maintain lifestyle consistency

Common Mistakes to Avoid

• Putting all money into one venture
• Not diversifying after initial success
• Living at the edge of means
• Focusing only on making money without considering preservation
• Neglecting to build steady income streams

Psychological Aspects

• Financial anxiety can persist regardless of wealth level
• Important to maintain financial literacy and attention to money
• Regular monitoring of investments and expenses necessary
• Being "good at money" requires consistent attention and thought
• Understanding interest rates and market conditions crucial for long-term success