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Generosity, Abundance, and the Wisdom of Crowds
Welcome to the Growth Guide, a weekly newsletter where I share actionable ideas to help you Be Better, Achieve More and Become Financially Free.
Clint Murphy
March 09, 2023
Be Better
This week on the Growth Guide Podcast we talked to Derrick Kinney, author of Good Money Revolution: How to Make More Money to Do More Good.
We talked about How Money is Good because you can use it for good. You can use it to change the world:
Connect your cash to a cause
Your money to a movement
Your profits to a purpose
We also dove into the Good Money Framework and the 3 levers of money:
Earn more
Save More
Crush Your Debt
Listen to our conversation here: The Growth Guide Podcast
Achieve More
People with a scarcity mentality tend to see everything in terms of win-lose.
There is only so much; and if someone else has it, that means there will be less for me.
A scarcity mindset can lead to feelings of isolation, unhappiness and a lack of fulfillment in life.
An abundant mindset can lead to feelings of joy, fulfillment and a sense of purpose in life.
It is possible to move from a scarcity to abundant mindset:
Take action
Practice gratitude
Share with others
Focus on possibilities
Challenge limiting beliefs
Surround yourself with positivity
You can read more about having an abundant mindset here.
Become Financially Free
Where does the accuracy of market prices come from, if not from a few determined investors who know they are right?
It comes from the faulty opinions of a large number of investors who err independently.
The Wisdom of Crowds says decisions made in groups are often better than could be made by any single member of the group.
An example of this involves a group’s collective ability to accurately guess the number of Jelly Beans in a jar.
Jack L. Treynor, a finance professor, ran this experiment with students and he found the average of the students’ guesses beat all but one or two of their guesses.
Now, apply this same concept to stocks to understand how the stock market works.
Market efficiency refers to the degree to which market prices reflect all available information. If markets are efficient, then all information is already incorporated into prices and so there is no way to “beat” the market.
The key is that independent and unbiased thinking is required to potentially beat the market and the odds are against you.
A Thought
Life is simple.
It isn’t easy, but it’s simple:
Know what you want
Understand what it takes
Do the work. Day in. Day out
A Question
What do you want and have you started the work to achieve it?
Etc.
I had the pleasure of being on the Hodler’s Podcast this week.
We talked about goals, habits and financial freedom amongst other things. Have a watch and listen here and let me know what you think.
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