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Mental models and building wealth

I rely heavily on mental models as a way to coalesce my thinking around particular ideas.

The world is complex and models help me organize ideas and concepts into packages I can remember with relative ease. In many ways, they’re like games. Games are filled with rules, pieces, tactics and strategies – but we don’t remember how to play a game piece by piece, rule by rule. We remember our tactics and our strategy as it is refined over the times we’ve played.

We learn new games by relating them to old games… and life is one big game, just has more significant consequences. And they’re all based on putting complex situations into mental models that are easier to understand and use.

And today, I want to share a few resources that I find helpful whenever I build and renovate these mental models.

First, a refresher on mental models:

Mental Models: The Best Way to Make Intelligent Decisions (109 Models Explained) [Farnam Street] – “This guide explores everything you need to know about mental models. By the time you’re done, you’ll think better, make fewer mistakes, and get better results.”

The Five Pillars Of Wealth Building [Darius Foroux] – “Any type of pursuit in life consist of a few fundamental ideas and concepts. For example, theory and experiment have been the two pillars of science for centuries. Those fundamental concepts have solidified our understanding of the world.

It’s the same for wealth building. I’ve identified five pillars that support our understanding of how to responsibly build wealth. You’ll see these concepts everywhere personal wealth is created.”

This ties in nicely with the idea of mental models and this 30-minute video by Ray Dalio on the Principles of Success:

I like to watch that video once every few months as a good refresher.

And before you go, something fun — It’s been a while since we’ve gone to Trader Joe’s but we’re a fan of a lot of their products in our home. Some of the products on the list feel like filler (bananas? organic brown rice? c’mon…) but it has a few goodies on it.

The 50 Essential Trader Joe’s Foods [Thrillist] – “There’s a reason Trader Joe’s has become America’s favorite grocery store, and it has nothing to do with those Hawaiian shirts. The chain has come a long way since opening in Pasadena, California back in 1967, growing to an empire and drawing hordes of shoppers on the strength of its affordable, store-brand offerings, which rotate often and include everything from coffee and booze to healthy meals, unexpected snacks, incredible cheese, and internationally focused entrees that have helped evolve the American palate. It has legions of devoted fans. Even haters can’t help but find something to love within its aisles.”

Happy Monday!