Max Koh Profile picture
29 Sep, 24 tweets, 3 min read
Why you do NOT need to quit your 9-5 job to get wealthy?

Read on...
Because you can marry someone rich. Kidding.

The real reason has to do with:

1. the type of job you pick

2. find other ways to own equity beyond starting a business.

Let's dig deeper...
FIRST: Get a job whose outputs do not match inputs.

Here's why:
So that the time you put in does not determine how much money you can make.

If you're paid based on a fixed salary...

then your income will always have a ceiling.
This applies for most 9-5 jobs.

Whether you're a teacher, accountant, or doctor...
Even the highly paid brain surgeon has an income cap. Why?

because it's pegged to his time.

When he's sleeping, on holiday, or retired - He doesn't get paid.

If he doesnt work, he doesn't earn.
The key is to find a job where your income is pegged only partially to time.

Yes, partially.

There should be another portion being influenced by a less finite variable.
This means roles where you get paid based on results or outcomes.

So you don't just exchange time for money.

usually this means sales or creative elements.
Is there uncertainty? Yes.

But everything in life has a trade off.
I found a job at the start of my career that had an average base salary...

But also a large portion of $$$ came from sales and commissions.
This taught me how to pitch and sell, which are valuable skills.

It also allowed me to exponentially grow my income.
Though my base salary wasn't the highest, my total take home was exciting!

You can put in 1,000 hrs of work and make only a little.

Or you can put in the same 1,000 hrs and make 6 figures or more.
So find roles that allow you to enjoy this arrangement with unlimited upside.

You don't need to quit your 9-5.
NEXT: Own equity through vehicles other than your own business
Most people who quit their 9-5 want to be business owners...

Because they wanna own equity in something valuable.

This is a good way to think.

You don't have to start a business to enjoy that benefit.

There are other vehicles you can use.
Buying a property for investment...

Or buying stocks of companies that you understand.

These are all ways to become an owner or part owner.

And the best part?
You don't have to operate the business.

Of course, if you enjoy growing something from scratch...

Then yes, you have an entrepreneur calling.
But I wasn't like that.

I didn't have anything in mind I wanted to build...

Nor did I have ambitions about being my own boss.
But I badly wanted to get wealthy.

So I could have more choices in life.

Thus I channeled much of my salary into buying stocks of great businesses.

I learnt to invest.
With this approach...

I was still able to achieve financial freedom before the age of 30...

While still keeping my full time 9-5 job.
Lesson? Know your end outcome.

There are other ways to enjoy ownership beyond starting a business.

Know your options.

1. Get a job where inputs are NOT matched to outputs

2. Own equity through other vehicles beyond starting a business
It's possible to reach your $$$ goals even with a traditional 9-5.

I did it.

Entrepreneurship is not a must to gain wealth.

Follow me at @heymaxkoh where I share my journey.

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More from @heymaxkoh

30 Sep
Investing is about connecting the dots.

Many investors fail terribly at this.

So here's a thread on developing Pattern Recognition:
When starting on my investing journey at first...

I only read about the companies that

i) I already owned, or

ii) planned to own
I tuned out all the rest that did not fall into either of the two buckets.

Bad move.
Read 25 tweets
28 Sep
In early 2020, I discovered Fintwit.

I had a 6 figure portfolio.

Since then, I've grown it several fold.

And attained my own version of financial freedom before age 30.

I owe a lot to the investors here.

Here's a list of my favourite tweets I've bookmarked and revisit often:
Preface before I begin:

I come from Singapore and a family with strong asian tradition.

Since young I was taught NOT to talk about myself.

It was boastful to share my achievements in public.

I spent 1 whole year on twitter with a private account, using it only to read tweets.
I only gained courage after:

• watching @david_perell interviews that inspired me to learn in public.

• hearing @AliAbdaal recommend "Share Your Work" in his youtube videos

So here's the top tweets that have influenced my investing philosophy:
Read 29 tweets
27 Sep
Wanna quit your job to start a business? Read this FIRST.

Not everyone is cut out to be an entrepreneur.

Over the years, I've seen many smart people quit their jobs to start a business, only to see them struggle as broke entrepreneurs.

Here's the mistakes they made:
1. Technician vs Owner

Most people quit because they are good at their craft, and think they know what it takes to run a business.

Unfortunately, they don't.

To run a business, you need a range of skills like marketing, sales, operations, among many others. The full stack.
Working IN a business vs ON a business are completely different things.

One of them only requires you be a technician, the other requires you be a manager, operator, and owner all at the same time.

Most people are not prepared to wear so many hats. So they end up struggling.
Read 13 tweets
22 Sep
You don’t need to be the best. You just need to be different.

Instead of trying to be the best at one skill, aim to be decently good at several skills and combine them.

I learnt this from @ScottAdamsSays years ago and it’s fast-tracked my career and income.

Here’s why:
1/ Build your own personal monopoly

Monopoly = a niche that you can dominate.

In most companies, there will usually be somebody else who can do what you do. You're replaceable.

By mastering several skills and combining them, you become the only person who can do A+B+C.
This makes it hard to put you in a bucket.

While there are many who can do either A or B or C, you are the only one who can them all.

Because of this, there is no price anchor or comparison.

You can set your own value and it gives you leverage at the negotiation table.
Read 10 tweets
20 Sep
Best of Josh Tarasoff

@joshtarasoff is an investor who looks at businesses with a different coloured lens.

Knowing he wants to stay low key, I'm grateful he gave me the green light to write about him.

Here's my top 5 mental models from his interviews & letters over the years: Image
1. Bet on change instead of consistency

Classic Buffet: are people going to buy this product 50 years from now? Are people still gonna drink coke?

However, what I learnt from Josh is some types of changes can be predicted with more certainty.

a) Win win win

b) Dual value prop
Win Win Win

When there's a new way of doing things that benefits multiple parties, that change is more certain to endure.

Josh gives the example of Pet insurance benefiting:

• Pet owners (pay less $$)
• The vet (makes more $$)
• The pet itself

The ecosystem fluorishes.
Read 19 tweets
10 Sep
Everytime I see an interview with Fred Liu of @HaydenCapital, I grab my notepad.

The interview that Tilman from @goodinvestingc did with Fred last month had so many investing nuggets.

I took time to transcribe it personally so I wouldn't miss anything. Here's a few lessons:
1/ The importance of being a student of business models to develop pattern recognition:

"All investing is pattern recognition - you need to look at enough data points and patterns to formulate your own idea of what works and what doesn't, and how businesses/ ecosystems develop"
- Constantly deep dive on new businesses I may not have any intention of owning

- The more mental models I can accumulate, the easier it is for me to spot patterns in future

- Opportunities appear as a result of connecting the dots based on what I researched previously
Read 15 tweets

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