The Algebra of Wealth

Chapter 1: Stoicism

What kept me from economic security for much of my life was a stubborn belief that I was exceptional. The market reinforced this. I was starting companies, being profiled in magazines, and raising tens of millions for my start-ups. I was (obviously) on the verge of tens, if not hundreds, of millions as I was (obviously) exceptional. Getting close a couple times only reinforced the belief.

Convinced of my imminent jump to light speed, I ignored the idea of living below my means or saving and investing. The IPO or acquisition would be any day now. I could have easily saved $10,000 to $100,000 per year in my twenties and thirties, but why sacrifice when so much more is right around the corner? Right? Wrong. The dot bomb of 2000, a divorce, and the Great Financial Recession meant that every time the ball looked to be headed for the fence, it would veer foul. And then, at 42, my first son was born.

Angels singing? A Hallmark Channel moment? On the contrary. I was so nauseous I couldn't stand upright. It wasn't the blood and screaming that rendered me useless, but the wave of shame that washed over me. I had fucked up. I could have easily had a few million dollars in the bank, and I didn't. I had failed. Until minutes earlier, I could handle that, because I'd only failed myself. What I couldn't handle was the realization that I had failed my son.

My failure was constructed from poor choices, but it wasn't from a lack of knowledge. I had an MBA, I'd raised many millions of dollars in capital, made payroll every week, and delivered profits every quarter. I understood money. I just wasn't any good at it. I was not alone in this. A study of UK consumers found that while both financial illiteracy and a lack of self-control contributed to people getting over their head in debt, the data showed "a stronger role for lack of self-control than for financial illiteracy in explaining consumer over-indebtedness."

Economic security doesn't

Scott Galloway

Profoundly insightful and a joy to read. Few explain complicated topics better than Scott Galloway.
Morgan Housel, New York Times bestselling author of The Psychology of Money


The decisions you make at the beginning of your professional life have a compounding impact on your chances of success, and this invaluable guide will steer you toward an optimal outcome.
Annie Duke, bestselling author of Thinking in Bets


The Algebra of Wealth is a book that is about far more than investing and wealth. It s about how your life choices play out in your financial standing and wealth, and Scott delivers his lessons with humor and panache. I cannot recommend it strongly enough!"
Aswath Damodaran, professor of finance, Stern School of Business, NYU


Not only does Scott walk you through the vital steps to gaining financial independence, he provides compelling advice on how to build character, relationships, and an interesting life.
David Solomon, CEO of Goldman Sachs


This is the type of high-impact financial advice that will actually get you to where you want to go.
Lyn Alden, financial analyst and author of Broken Money