From: alexhormozi
Inversion thinking is an effective problemsolving techniques popularized by Charlie Munger, a personal hero to the speaker [00:00:06]. Munger delivered a seminal talk on “how to live a miserable life” to illustrate this concept [00:00:10].
Definition and Process
Inversion thinking involves solving problems in reverse [00:00:16]. Instead of asking “How do I have a good marriage?”, one would ask “How would I destroy my marriage?” [00:00:20]. After listing all the ways to destroy it, the next step is to do the exact opposite [00:00:28].
Why it Works
Our brains are inherently better at identifying problems and threats than they are at finding solutions [00:00:30]. This is an innate, evolutionarily designed ability [00:00:35]. By harnessing this natural inclination to foresee every possible problem and threat, one can then flip that in reverse to discover solutions [00:00:45].
Applications
This thinking process can be applied to various aspects of life, including:
- Business [00:00:50]
- Marriage [00:00:51]
- Personal merit [00:00:50]
- Financial goals [00:19:58]
- Career [00:19:53]
- Body/Health [00:19:56]
By focusing on how to destroy these areas, and then doing the opposite, success can be achieved “by accident” through avoiding common pitfalls [00:20:06]. The key is to concentrate on not making “stupid mistakes” that most people commonly do [00:20:16].
The 28 Ways to Stay Poor (and Their Inversions)
The speaker presents “28 ways to stay poor” as a direct application of inversion thinking to mindset changes for achieving financial goals [00:00:56]. By understanding how to remain poor, one can then reverse these behaviors to achieve financial success [00:01:01].
Here are the 28 ways to stay poor, followed by their inversions for achieving success:
Procrastination and Inaction
- To Stay Poor: Start tomorrow [00:01:37].
- To Not Be Poor: Start today [00:20:25].
Knowledge without Application
- To Stay Poor: Read lots of books and then do nothing [00:01:50].
- To Not Be Poor: Read books and apply what’s in them [00:20:27].
Seeking Guidance
- To Stay Poor: Take advice from poor people on how to be rich [00:02:06].
- To Not Be Poor: Take advice from rich people on how to be rich [00:20:28].
Relationship Dynamics
- To Stay Poor: Pick a spouse who makes you feel guilty for working [00:03:33].
- To Not Be Poor: Pick a spouse who makes you feel awesome about working [00:20:30].
Response to Failure
- To Stay Poor: Fail once, quit forever [00:03:11].
- To Not Be Poor: Fail once, then try again [00:20:34].
Perception of Fairness
- To Stay Poor: Think that the world is fair [00:03:37].
- To Not Be Poor: Assume the world is unfair and act accordingly [00:20:35].
Blame and Complaining
- To Stay Poor: Blame your circumstances and complain [00:04:01].
- To Not Be Poor: Never blame your circumstances; instead, thank them for making you who you are [00:20:38].
- To Not Be Poor: Instead of complaining, do something [00:20:42].
External Dependence
- To Stay Poor: Expect the government (or other people) to save you [00:05:05].
- To Not Be Poor: Expect no one to save you except yourself [00:20:45].
Valuing Others’ Opinions
- To Stay Poor: Value the opinion of others over your own [00:05:22].
- To Not Be Poor: Value your opinion over those of other people [00:20:49].
Avoiding Discomfort
- To Stay Poor: Avoid discomfort [00:06:29].
- To Not Be Poor: Seek out discomfort [00:20:51].
Tolerating Mediocrity
- To Stay Poor: Tolerate mediocrity from yourself and others [00:07:02].
- To Not Be Poor: Tolerate nothing but excellence [00:20:53].
Breaking Promises
- To Stay Poor: Make promises, break promises (to yourself and others) [00:07:56].
- To Not Be Poor: Make promises, keep promises [00:20:54].
Waiting for Perfection
- To Stay Poor: Wait for perfect conditions [00:08:54].
- To Not Be Poor: Wait for the worst or imperfect conditions and act anyway [00:20:56].
Prioritizing Appearance over Substance
- To Stay Poor: Prioritize looking rich over being rich [00:09:31].
- To Not Be Poor: Be willing to look poor [00:10:17].
Misplaced Effort
- To Stay Poor: Avoid working on what matters most [00:10:29].
- To Not Be Poor: Work on the things that matter most; ignore the rest [00:21:05].
Saying vs. Doing
- To Stay Poor: Say you’re going to do something and then don’t do it [00:11:17].
- To Not Be Poor: Say you’re going to do something and then do it [00:21:08].
Following the Crowd
- To Stay Poor: Do what everyone else is doing [00:11:28].
- To Not Be Poor: Do what no one else is doing [00:21:11].
”Doing Your Best” vs. “What It Takes”
- To Stay Poor: Do your best, not what it takes [00:11:58].
- To Not Be Poor: Do your best and make it above what it takes to be successful [00:21:14].
Talking vs. Acting
- To Stay Poor: Talk more, do less [00:12:35].
- To Not Be Poor: Talk less, do more [00:21:20].
Constant Starting, No Finishing
- To Stay Poor: Start something new today, start something new tomorrow, repeat; always leave half-built bridges [00:13:09].
- To Not Be Poor: Start something new today and keep at it until you are good [00:21:22].
External Validation
- To Stay Poor: Believe what other people think about you more than what you think about yourself [00:14:00].
- To Not Be Poor: Don’t believe what other people think about you more than what you think about yourself [00:21:29].
Repeating Mistakes
- To Stay Poor: Make a mistake, then repeat the mistake again and again [00:14:16].
- To Not Be Poor: Learn from mistakes and adapt. (Implied from the general principle and other points)
Being Replaceable
- To Stay Poor: Be replaceable [00:15:07].
- To Not Be Poor: Be irreplaceable [00:21:32].
Stopping What Works
- To Stay Poor: Find something that works, then stop doing it [00:15:48].
- To Not Be Poor: Find something that works and don’t stop doing it, even if you get bored [00:21:34].
Poor Hiring
- To Stay Poor: Hire dumb people [00:17:14].
- To Not Be Poor: Hire smart people [00:21:42].
Assumed Knowledge
- To Stay Poor: Assume you are always right [00:17:44].
- To Not Be Poor: Assume that you are always wrong and be willing to learn [00:21:44].
Spending Habits
- To Stay Poor: Spend more than you make [00:18:49].
- To Not Be Poor: Make money and spend less than you make [00:21:47].
By flipping these rules, one can establish a winning mindset and avoid common pitfalls, leading to success [00:20:09].