The Last Safe Investment

What if the safest and most rewarding investment isn't a stock, a bond, or real estate – but you, yourself?

1. Shift Focus from Finances to Yourself

Traditional approaches to financial security often involve extensive savings, reliance on investments, or securing well-paid jobs. However, all these depend on external factors like market stability, job security, and economic conditions. The book argues that this approach leads to risk and uncertain outcomes. Instead, the authors recommend centering financial security around the one thing you fully control – yourself.

By focusing on building your wealth-generating abilities, you reduce the risks tied to external factors. But this isn’t just about money. True wealth, as defined in the book, involves freedom, love, creativity, and personal growth alongside financial stability. The self-focused approach leverages these broader aspects to create a life that’s both fulfilling and financially secure.

The authors present a framework called SAFE (Self-Amplifying Financial Ecosystem) that provides disciplines for a well-rounded financial strategy. SAFE emphasizes using these principles not just to build financial assets, but also to enjoy life today, rather than deferring happiness until retirement.

Examples

• Savings are at risk in fluctuating stock markets; investing in personal skills isn’t.
• A well-paid job can be lost, but becoming highly skilled ensures future employment options.
• Learning to reduce stress through personal growth can also lead to financial savings.

2. Link Happiness to Financial Productivity

Consumer culture often tells us that buying more will make us feel better. This mindset can drive excessive spending, leaving us short on savings. Understanding what truly makes you happy and refining your choices based on that can help you save more and live better.

The book introduces the concept of the "Happiness Exchange Rate." This is the amount of joy you gain for every dollar you spend. When you identify purchases or activities that provide lasting happiness – as opposed to fleeting pleasure – you adjust your habits toward true value. For example, a lunch date with loved ones may provide more joy than impulsive gadget shopping.

Moreover, this discipline requires examining the reasons behind your purchases. If you’re buying new clothes to cope with stress, investing in stress management methods like yoga or therapy is a better alternative. Such activities carry long-term benefits for both health and financial stability.

Examples

• An expensive dinner feels wasteful if spent stressing over work versus bonding with loved ones.
• Emotional spending on clothing to cope with stress doesn’t solve the root issue; therapy might.
• Long-term savings and joy are better supported by investing in hobbies or fitness activities.

3. Cultivate Interpersonal Skills for Leadership

Interpersonal skills, like networking and the ability to influence others, are essential for positioning yourself as a leader in any environment. Workplace value isn't just about technical skills; it’s about how well you work with and inspire others. Leadership often comes down to empathy and the ability to engage with people emotionally.

The book tells the story of a software engineer named Raj who created a networking community from scratch to boost his career. This illustrates how strong social connections can leave a lasting impression, leading to opportunities not immediately apparent. Influence, in particular, is a cornerstone of leadership. When you connect with others’ values and emotions, you can motivate them to align their efforts with shared goals.

By investing time in building empathy and mastering these abilities, you enhance your reputation and effectiveness in almost any role. These traits make you an indispensable asset within workplaces where collaboration and teamwork are key.

Examples

• Raj built a community from scratch and transitioned to a leadership role in tech.
• Managers who empathize with their teams often increase productivity and morale.
• Building trust and understanding with colleagues can lead to promotions or opportunities.

4. Creativity Provides Career Longevity

Creativity is another skill often overlooked but deeply valued in workplaces. While machines excel in efficiency, they struggle with innovation. Thus, nurturing creativity allows you to remain competitive in the workforce, even in technologically advanced environments.

The authors highlight the story of Marcel Duchamp's conceptual artwork, "The Fountain," to explain how innovative ideas redefine success. True creativity often stems from exposure to differing perspectives, even if stepping outside your comfort zone feels difficult. By consistently practicing creativity, you can adapt to changes in industries and markets.

In business contexts, creativity manifests as innovation. By fostering this skill, individuals can secure themselves as assets that drive progress and overcome challenges. Creativity can help refine workflows, develop new products, or steer organizations through volatile change.

Examples

• Marcel Duchamp’s urinal art transformed the art world despite its unconventionality.
• Cross-cultural exchanges provide professionals with fresh problem-solving techniques.
• Businesses reward employees who introduce innovative solutions to longstanding problems.

5. Thrive in Tech Without Technical Expertise

Technical expertise isn’t always essential to thrive in tech-driven industries. Instead, understanding a system’s broader processes and mechanics can provide just as much value. By creating simple mental models, anyone can grasp and contribute to technical projects without needing to know every detail.

Mental models simplify complexity. For instance, envisioning a sandwich-making process by mapping out shopping, assembling, and eating helps visualize inputs, outputs, and steps. In professional scenarios, these same principles can break down complicated workflows, giving even non-experts a working understanding.

The ability to bridge gaps between experts and non-experts makes you a valuable addition to any team. Whether you’re in construction, marketing, or tech, this skill keeps you relevant and employable.

Examples

• Lee Franklin managed telecom construction projects without prior technical knowledge.
• Mental models help marketers understand engineers’ workflows to improve communication.
• Such models assisted businesses in aligning cross-departmental efforts efficiently.

6. Healthy Living Improves Workplace Performance

Physical and mental well-being play a definitive role in work effectiveness. Employees who lack energy, feel overly stressed, or function on poor habits risk lowering their value. Meanwhile, those who care for themselves physically and mentally excel.

Simple acts like better sleep, healthy diets, and exercise contribute directly to workplace confidence, charisma, and longevity. Mental practices like mindfulness can reshape your capacity to focus and remain calm under mounting stress. Interestingly, even building a healthy sex life, as the book claims, may improve creativity and workplace drive.

The authors stress that self-care enhances every aspect of productivity, from decision-making to interpersonal exchanges. People who prioritize well-being transform themselves into more appealing candidates for promotions or leadership roles.

Examples

• Rowan, who was energetic and focused, outperformed Kim, who lacked health habits.
• Employees overwhelmed by daily emails saw improvements in focus through mindfulness.
• A healthy sex life reportedly improved participants' problem-solving at work.

7. Leverage Equity to Maximize Rewards

Smart equity choices can yield massive rewards with little upfront cost. The book gives the example of David Choe, who accepted Facebook shares instead of a traditional payment and became a multimillionaire as a result.

Equity doesn’t always require substantial capital or insider knowledge. Anyone can benefit by taking adviser equity – helping small businesses or startups in exchange for a small stake. Through seminars or mentorship roles, individuals can gain shares that might eventually generate vast returns.

Even if the equity itself doesn’t yield financial success, the relationships and networks built in the process create opportunities. Equity thus serves dual purposes: financial growth and professional connections.

Examples

• David Choe’s shares in Facebook are now worth billions following its success.
• Adviser equity lets skilled individuals gain shares by mentoring startups.
• Networking through such opportunities often leads to valuable partnerships.

8. Build a Tribe for Mutual Support

Being part of a tribe – a supportive, collaborative community – is one of the strongest pillars of financial and emotional well-being. Tribes offer shared resources, mentorship opportunities, and a built-in network for job referrals.

The example of Bryan Franklin’s tribe illustrates this perfectly. When he was injured, his tribe members provided meals, massages, and insurance help. Beyond immediate benefits, such networks contribute to a sense of belonging, boosting overall happiness and fulfillment.

Establishing your own tribe can be as simple as convening like-minded people. With time, these networks evolve into systems that provide both emotional and financial security.

Examples

• Bryan’s tribe offered practical help through insurance issues and recovery.
• Tribes often share economic resources, like carpool systems or homes.
• Members share knowledge about job opportunities and collaborations.

9. Embrace Financial Plans with Flexibility

Rigid financial models fail because they depend heavily on external factors. By comparison, flexible systems – focused on self-growth and direct connections – allow continuous adaptation, regardless of economic shifts.

The SAFE model as described urges individuals to rethink investments. Instead of leashing their futures to market vulnerabilities, people can thrive by continuously developing adaptability, creativity, and human connections.

This holistic approach balances enjoyment today with careful future planning, ensuring financial growth aligns with personal well-being.

Examples

• The SAFE model helps integrate financial and lifestyle priorities seamlessly.
• Adaptability trumps stringent methods during economic downturns.
• Focusing on human value enhances stability beyond market fluctuations.

Takeaways

1. Start a small, values-based tribe by gathering diverse people for regular meetings.
2. Reflect on your spending habits and eliminate low "Happiness Exchange Rate" purchases.
3. Develop one new super skill – like public speaking, networking, or creativity.