A few weeks ago, I was at a conference when I struck up a conversation with an older businessman. As we talked about the economy, I mentioned how it was really important for people to constantly adapt in an ever-changing world.

The businessman turned to me with a surprised look. “I’ve been with my wife for forty years, and I’ve worked at my company for the same amount of time. I know just about everything there is to know about what’s important in my life. I don’t really think stepping out of my comfort zone will teach me anything new that actually matters.”

I disagree. The world around you is always changing. People change. Businesses change. What helps people make more money and lead better lives is their ability to discover and adapt to these changes. To do this, you need to step outside your comfort zone.

It isn’t easy – after all, we’re creatures of habit. We don’t like change. With that in mind, let’s start small. Here are eight baby steps to help you move out your comfort zone.

1. Reconnect with an old friend: It’s hard to meet good people, so try to stay in touch with those you already know. Once a month, pull out your Rolodex and find someone interesting that you haven’t touched base with in awhile. Call them and ask them out to lunch. If they aren’t available, try someone else. Meeting long-lost people is a great way to have new conversations – and who knows, you might even rekindle an amazing friendship or a business connection.
2. Join a Group: A few years ago, I bumped into an old friend who was part of a basketball league. It didn’t seem like my kind of thing but I decided to give it a shot. I ended up a making a bunch of new friends and getting a great new exercise routine. Ask your friends what they were currently involved in. If that doesn’t work, take a look online (www.meetup.com is a great resource) and find some groups that interest you. You’ll be glad you did.
3. Contact Someone Random: I’m not saying to just start spamming or telemarketing random people, but perhaps there’s someone you admire to whom you’d like to reach out. One of my friends, an aspiring economist, wrote a letter to Nobel Prize Winner Milton Friedman and actually got a personal response. Don’t be afraid to reach out; after all, what do you have to lose?
4. Try working with different people: At work, that might mean getting involved in a project with a new group. This is a great way to improve your interpersonal skills while getting to know new people. Note: don’t rush into doing this if it will hurt your long-term career prospects.
5. Take a walk: I personally love walking. It allows me to exercise, reflect on life, and get in touch with nature. The next time you feel like plopping on the couch and watching TV, try taking a walk instead. Let the fresh air clear your head, give you some new perspectives, and hey, maybe even some great business ideas!
6. Ask how others are doing: The best conversations come up when you try to learn about other people. It gives them a chance to talk about their lives and gives you a chance to learn. It strengthens relationships and makes you more empathetic. Best of all, it doesn’t cost you anything but a little bit of time. In short, it’s a great way to build your personal brand at almost no cost. This is one thing I don’t do often enough and am actively working to fix.
7. Spend more time around kids: A few months ago, I was telling my little cousins about a social gaming business idea. The business model was targeted at young children and I wanted to get their feedback. I was really excited about the concept, but five minutes in my cousin interrupted me. “That’s stupid,” he exclaimed. My immediate reaction was frustration. How was telling me that my idea was stupid constructive in any way. Kids say the darndest things! But then I realized that many of my friends and colleagues may have actually felt the same way, but they just didn’t say it with the same bluntness. The great part is that this bluntness often help us realize basic truths about the world and about ourselves.
8. Volunteer: It amazes me how much better we feel when we do something selfless. Volunteering gives us purpose and direction in life, and often helps us better understand ourselves and what is truly important to us. Not a bad return on investment…especially when the goal was to help others!

How do you plan to step outside your comfort zone? Please share in the comments

“I don’t feel like going running today…I’m too tired.”

“I can’t believe that Jessie made so much money on his last company. I am way smarter.”

“She’s so annoying…I can’t believe she said that to me. If I had my way, I’d give her a piece of my mind.”

We all make excuses. It’s a natural way to let out our frustration once in a while. The problem is when it becomes a habit.

Excuses are a high-effort, low-reward activity. Whining doesn’t actually solve anything; it just distracts up from the real issues. Instead of spending the time complaining about something, why not spend time fixing it? Great businesses weren’t built by pointing fingers and talking behind someone’s back has never improved a relationship.

Here’s a personal story: Several years ago I stumbled upon Quick Sprout, a blog by entrepreneur Neil Patel. When I first read Neil’s bio, I was very impressed. Here’s a guy who’s my age and he’s already accomplished so much; he’s a multimillionaire, an in-demand speaker, and consults for a number of high-profile clients. The first thing that I thought was, wow, this guy is really inspiring.

The next thought was not as pleasant. All of a sudden, my own accomplishments didn’t seem as meaningful. I’ve achieved nothing compared to Neil.

But wait. Neil’s situation was different. He got lucky, stumbling upon a great business model while he was still in college. If that had happened to me, I’d be rich too. But I can’t copy him now; the market’s changed and it’s too late. So it’s totally fine if I haven’t yet achieved the things I want to…

Suddenly I stopped myself. How could I be thinking like this?

This type of unproductive thinking is called the “Shrug Effect.”  Instead of figuring out how to incorporate success into our own lives, we waste time figuring out the “differences” that allow others to be successful instead of us. This allows us to “shrug” our concerns away.

We often look at successful people with a sense of awe. How did they get to where they are? It must be some innate quality that we just don’t have. Or maybe it’s that Harvard Business School diploma that got them the connections they need.

In reality, most successful people have failed more often than they’ve succeeded. But when we hear about them in the media, we usually only see the successes – the fancy degrees, millions of dollars, whatever it might be. That’s one of the things I love about Neil’s blog; he’s completely upfront about his failures and uses them as an opportunity to learn. To me, this is something we can all learn from to make us more successful.

As I thought about it more, I realized two things. First of all, Neil’s not that different from me. We both grew up in middle-class Indian families in California. We both have a college degree and an entrepreneurial background. I’ve had the exact same opportunities for success, and thinking otherwise isn’t going to move me in the right direction.

The second thing I realized is that it’s never too late. We always have a chance to accomplish things if we put in the time and effort. The last thing we want is to be saying that we should have tried to do something we really wanted to do. Excuses might make us feel better in the short run, but eventually we’ll end up regretting it.

With that in mind, here are four techniques (courtesy of Zen Habits) that can help transform your frustration into focus.

1. Define Your Goals: Take a few minutes to understand what you want to accomplish. Make a list of important tasks that you can realistically get done in the short term. Once you’ve made your list, stick to it. If you find yourself getting distracted, refocus by taking a look at your list.
2. Define Your Motivation: The best way to get motivated is to ask yourself a few questions. Why are you doing something? What is the end goal? Why is it important? Defining your motivation will help you understand why you are doing something, which is a major step in overcoming resistance.
3. Get Started: I wrote a while ago that the hardest part of anything is getting started. Once you get moving, it’s a lot easier to keep going. If you don’t start, you’ll never be in a position to finish. So why are you still reading this? Go and get started! =). Cut down on the “If’s and buts” in your vocabulary. It’s easy to say “I’d do it but…” or “I’d try it if…” but this thinking gets us nowhere. If you really want to accomplish something, the “ifs” and “buts” are just going to get in the way.
4. Make a List: Identify specific things you can do to change the situation. Think about which of these ways makes the most sense and give it a try. If it’s working, keep it up. If not, don’t be afraid to try something else.

If you constantly approach your problems this way, you shouldn’t have any time left for whining, and you’ll be amazed at how much more you accomplish.

So what are you waiting for? Stop complaining and start doing!

I recently got this e-mail from a good friend:

“Hi Vik. I need a bit of advice. I have this co-worker who is a total jerk. He keeps bad-mouthing me and generally gets in the way of my productivity. I’ve made some efforts to fix the situation; after all we’re supposed to be helping each other, but nothing works. What should I do?”

I like to think that most people are nice and generally mean well. But every once in a while, you get someone in your life who is a real jerk, someone that you just can’t deal with. This could be a boss, a co-worker, or an acquaintance. Most people reason that this is part of life – they just have to put up with certain people.

My approach is different: Lose the Jerks

Seriously. Jerks get in the way. They drain your energy and make you less productive. The more you invest in making failed relationships work, the more time you’ll waste….and the less money you’ll make.

I’m not saying to cut people out of your life just because you have a bad first impression. Everyone is different – some people might take time to open up or act friendly. But always be looking for patterns; if things are getting out of hand, make an effort to fix the problem. If that doesn’t work, then try to figure out ways to reduce your interaction with that person.

What if my boss is a jerk? What do I do then?

Ok, I know that you can’t just “lose” your boss. But if you’ve already made a strong effort to improve the situation, you need to look for alternatives. Don’t be afraid to explore transfers or other work opportunities if you have to. These little experiments may end up paying off big time.

A few years back, one of my friends was working as a computer scientist for a major corporation. Her immediate boss was really tough to deal with and consistently decreased the productivity of everyone in her group. As a result, she was unable to grow. Many companies were hiring in her field, but the problem was she had gotten comfortable and didn’t really want to deal with the issue.

She ended up spending three long years stagnating at the company before finally leaving for another opportunity. With a little effort, she could’ve lost the jerk and moved on…but for whatever reason, she held back. Today she says it’s one of her bigger regrets.

A word of caution: Going out of your way to “lose the jerks” is a last resort – only use it everything else has failed and you still can’t deal with the problem. Don’t rush into an emotional decision; take time to figure out if “losing the jerk” really is the best choice. And if it is, go for it. Don’t let emotions stand in the way. You should never be afraid to do what is best for you.

How do you deal with the jerks in your life? Please share in the comments

The next day he was extremely sore, but he insisted on “pushing through the pain.” He went in for another two hours…and ended up pulling his hamstring muscle. He was sidelined for a few weeks, and he never really gave the gym another try.

It was really too bad. He genuinely wanted to get in shape, but the immediate setback really dampened his enthusiasm.

A better approach is to take baby steps: crawl before you walk, and walk before you run. If you haven’t been to the gym in awhile, don’t try to push yourself too hard on the first day. Ease yourself into a routine; do a little bit each day. Over time, your body will get more used to the workout and you’ll be able to step things up a notch. This way, you’ll minimize the chance of injury and maximize your chances of success.

Of course, getting into a good workout rhythm is different from expanding your network and personal brand. These goals are even 

more long-term, and it’s important to constantly be taking little steps in the right direction.

Spend time with a different group of people: Once a month, try to make some new friends. Find people who are outside of your immediate social circle and call them up for lunch. The best part about this is you may even make some amazing relationships or business connections.

Try a different job function: Most people are very good (and are comfortable doing) one or two job functions. See if you can get an opportunity to try something new. For example, if you are an engineer, you might ask to go on a sales call to help explain the more technical aspects of your product. You’ll build confidence and you’ll develop some new skills along the way. As a bonus, your boss will probably like the extra initiative.

When in doubt, just ask yourself “what’s the worst that could happen?” You’ll be amazed at how a little perspective will help you feel more comfortable.

Stop procrastinating: There are two reasons we procrastinate – laziness and fear. Remember that if you are scared of something, putting it off isn’t going to solve the problem. In fact, the stress will only build up over time.

Instead, just do it! Tackle the tough stuff first and get it out of the way. This will relieve your mind of the stress of waiting for something bad to happen.

Over time, you’ll feel more and more confident, and can start taking larger steps. This positive loop will eventually produce big results.

Just remember, any step, no matter how small, is better than doing nothing at all.

Fast forward five years. We’re set in our ways. Somewhere along the journey, we stopped learning and growing.

How do you fight this complacency? Here’s one trick I use: every so often, take a moment to think about your “True Net Worth.”

Your True Net Worth is what you have left when you strip everything else away – all of your relationships, all of your money and assets. You’re back to ground zero. It’s hard to imagine, but when you take away all the fancy trappings, this is who you are as a person – personality, skills, and enthusiasm.

So how do we boost our True Net Worth? Here are a few ideas:

Become More Aware:

Even though the economy is sluggish, I truly believe that there are more opportunities available than ever before. The question is where to find them, and the only way to do this is by keeping your eyes open.

A couple of years back, one of my good friends got a call from his friends back home in Tennessee. They ran a rifle and ammunition business and were actively looking to expand. My friend saw an opportunity, and leveraged his skills in online marketing to generate more than $3 million in revenues in his first year. This never would have happened if he hadn’t put two and two together.

Develop New Skills:

This is a no-brainer, and there’s no shortage of new skills to develop. A good place to start is by figuring out your strengths, and understanding where you might be able to grow the quickest.

One of my favorite examples of this is Andrew Mason, the CEO and Founder of GroupOn. Andrew was a music major in college, and graduated without a job. He quickly realized that in order to make any real money, he needed to develop some skills, so he learnt how to program.

Later on, he used these skills to launch GroupOn, and started learning about how to manage and scale a growing business. These new skills have allowed him to be a successful CEO in a very competitive industry.

Cultivate Your Personal Brand:

It’s great to have skills, but they don’t mean much unless someone knows about them. If you are good at something, don’t be modest! Make sure that people know what you can do and how valuable it is. This sense of expertise is what’s going to command the big bucks.

An exceptional example is Ramit Sethi, at I Will Teach You To Be Rich. Ramit was only 22 years old when he started blogging, and he quickly got featured in the Wall Street Journal. This wasn’t easy; he pestered editors night and day to give him a featured spot, and they finally gave in.

But it was worth it. Afterwards, Ramit’s traffic hit an all-time high. Moreover, he was able to tell people (and clients) that his blog had been featured in this prestigious publication. His consulting and public speaking rates went up and he has never looked back.

How do you plan to boost your True Net Worth? Please share in the comments.

It’s great to meet people, especially successful ones who can help you. But meeting them isn’t enough…your goal should be to build a long-lasting relationship. That’s when you’ll really start getting some value out of your network.

Here are several things you can do to increase your chances of networking success:

Put yourself out there:

Lots of people go to events, but very few make the most out of it. After all, it’s not easy to just casually approach someone and ask for a business card.

Instead, try to engage people in a more detailed conversation. Explain to them what you do and make sure to listen to their story. This makes it much more likely that they will remember you in the future.

If there’s an awkward pause in the conversation, you can use it as an opportunity to get their contact information (a business card, e-mail address, or phone number)

Follow Up:

It never ceases to amaze me how many people collect business cards and then never send a follow-up e-mail. Ideally, you should follow-up with everyone within 24 hours. This maximizes the chances that they’ll remember who you are.

You don’t have to send out a long, detailed e-mail. Just a simple note will suffice. Recap the conversation and give them a few options for staying in touch. You should also include a “teaser” – some reason that they should respond other than to just hang out…which brings me to:

Demonstrating Value:

People are busy. They don’t want to meet up with just anyone. Therefore, you should put yourself in their shoes and figure out what you can do for them. Here are a few ways that you can demonstrate value to prospective contacts:

Introductions: Think about your own network. Is there anyone that could help your prospective contact? If so, offer an introduction. This immediately elevates your communication to a higher priority level.

Advice or Expertise: If you are an expert in a certain area, it’s helpful to let people know that. This way, they are more likely to see value in knowing you. Be willing to share some of your expertise to strengthen the relationship…but at the same time, don’t give away too much for free.

Once you have given people a reason to stay in touch, the next step is to build the relationship by…

Meeting Face-to-Face:

Pick a convenient location: Make sure that you meet someone that’s convenient for the other person. If you care about the relationship, then you want to make things as easy as possible.

Don’t Be Late: There’s nothing worse you can do than being late. It makes it seem like you aren’t taking the meeting (and therefore the relationship) seriously. Better to be insanely early than to even be a minute late.

Don’t Just Talk Business: It’s important to be interesting as a person. Make an effort to get to know the other person and see if you have any common interests. People tend to loosen up if they feel more comfortable around you. Body language is a great indicator of whether someone’s interested in what you have to say.

Offer to Pay: If you’re meeting for lunch or coffee, at least make an effort to pick up the bill. If they resist, tell them they can pay next time.

At the end of the day, the goal is to build a trusted business relationship…and ideally a friendship as well. Think about it: people are much more likely to help their friends out when they need it, so your goal should be to make as many friends as possible.

What techniques have helped you in networking? Please share in the comments.

Have you ever had one of those days where you just can’t seem to catch a break? Those days where you feel like you don’t have a purpose and that nothing really matters?

These are the days that can really hurt us. We might make a bad spending decision or say something inappropriate at work. The last thing we want is to damage our earning ability; this is only going to make things worse!

For me, the holiday season is a good time to reflect and figure out how I'm going to fight the downward spiral going forward. Here are four experiments I'm planning on trying next year.

Some people say that the goal should be to focus on positive thoughts. But that’s easier said than done; I don’t know about you, but positive thinking doesn’t come naturally to me when I’m feeling down. I started reading more about the issue and something interesting: it’s not about positive thinking, but instead about positive doing. Here are four ideas to help you turn things around.

Have Something to Look Forward To:

It is MUCH easier to get through the day when we have something to look forward to in the near future. Take a moment to think about the little things that are coming up – maybe a night out with your significant other, a friend’s birthday party, or a fun outing with your family.

What if nothing is coming up in your life? Well, then it’s time to change that! Figure out something that you want to do and make plans to do it. When I was younger, my father used to get energized by planning our family vacations. He worked hard in his day job and our vacations were only once a year, but just thinking about them made him happier and gave him much more energy.

Write About Your Loved Ones:

This is an interesting one. Researchers at the University of Arizona found a few volunteers that took time out of their day to write something about their loved ones. Immediately afterwards, they felt substantially uplifted. Once again, this experiment can make you feel like you have purpose, giving you an instant shot of self-esteem.

Do Something Nice For Someone Else:

Many people believe that we have evolved to be purely selfish creatures. Why should we go out of our way to do nice things for others without getting anything in return? But the research shows otherwise; volunteering time or money for the benefit of others makes us feel much better about ourselves. It gives us a greater sense of self-worth and boosts our confidence. I’m not saying to give away all of your time and money, but do what you can; a little goodness can go a long way.

Write Down Your Problems:

There was an interesting research study done a few years back. They did an experiment where people feeling down talked about their problems. Afterwards, the results showed that they didn’t feel any better. But when people wrote their problems down on people, they actually ended up in a much better mood. This is because writing things down helps put things in perspective. For some reason, your problems don’t seem as bad once you see them on paper.

Have a wonderful holiday season everyone! Here's to a happy new year!

Many people dismiss poker as a game of luck. Nothing could be further from the truth. Sure, on a given night some people will get luckier than others, but I have yet to meet the poker player who consistently beats the odds just by running well. Over the long run, just as in business, those who are skilled, focused, and knowledgeable will always beat those who are just lucky.

Click here to view the embedded video.

Making Decisions With Limited Information:

In poker, as in business, you always need adapt to the situation using the information you have. Poker is far from an exact science. Hundreds of books have been written on everything from playing styles to pot odds, but underneath all of these complexities lie two fundamental rules:

1. Stay in when you are ahead
2. Get out when you are way behind.

The secret to winning in both poker and business is find out where you stand as quickly as possible. You can never know for sure, but through disciplined evaluation you can be right more over than not. If you are winning, you should act to maximize your financial upside. On the other hand, if you are beaten, you should play in a way that minimizes your losses.

It is this second rule that separates good poker players from the rest. If you have a winning hand, it’s generally pretty easy to stay in the pot. Where most players tend to lose money is on the hands where they are badly beaten. They hope to “luck out,” but luck is not a sustainable long term strategy. If you are beaten, you’re beaten, and (most of the time) you are not going to catch up.

Business is no different. If a business venture is succeeding, it’s very easy to continue investing time and money – but when people start failing, they often keep throwing good money after bad in an attempt to salvage the situation. This can lead to a dangerous downward spiral. Instead, it’s important to fail fast – if something is not working, you should cut your losses and move on.

Why do we make these bad decisions? Most of the time, it’s because we don’t like to admit we were wrong. It’s never easy to say that we’ve made a mistake, but it’s the first step in getting us back on the right path.

The Importance of Giving Yourself “Outs”

One of the central ideas in poker is the concept of an “out.” Basically, an “out” is a card that will help you improve your hand…when you are currently losing. To win, you have to take some risks (like bluffing for example), and if you’re good, these risks will pay off over time. But sometimes, people will call your bluff, and this is when “giving yourself outs” can help you get lucky and stay in the game.

It’s the same in business – few ventures succeed without at least SOME risk. But in most cases, it’s usually a good idea to hedge your bets a little bit.

It’s not the most romantic idea in the world, but it works. Take Mark Zuckerberg, the founder of Facebook. People think he dropped out of college on a whim, but in reality he waited until he had funding from prominent investors. Moreover, he could have gone back to Harvard any time he wanted to if Facebook didn’t work out.

Zuckerberg was smart enough to start Facebook as an experiment and lucky enough to turn it into a home run. Of course, not everyone gets so lucky. One of my close friends also dropped out of Harvard for a year to start a company that went nowhere. Fortunately, he was able to go back to school, graduate with honors, and get a high-paying corporate job. Not a bad set of “outs” to have!

The Dangers of Going On Tilt:

It’s 3:00 AM in Las Vegas. Six weary poker players have grinding it out for several hours. A big hand starts developing as money goes into the pot really fast. Joe looks at his cards and pushes all of his chips in the middle. Another player calls his bet. The cards are turned over. Joe is ahead, but there are still two more cards to come…

Two minutes later, Joe angrily whips out another thousand dollars to buy more chips. “I can’t believe how badly I run,” he mutters. He’s desperate to recoup his losses.

The next hand begins. Joe doesn’t really have anything strong, but he’s still angry from before. He thinks he can bluff everyone out. After all, he deserves a lucky break after the last bad hand, right?

A few minutes later, Joe is down another thousand dollars.

What happened here? In poker, this is called “going on tilt.” You get unlucky, start feeling angry…and all of a sudden you’re making some very bad choices.

But “going on Tilt” isn’t just limited to poker. It happens all the time in our day to day lives. We have a bad day at work, and then get in a silly fight with our loved ones. We get stuck in traffic and end up getting in a shouting match with another driver. One bad result turns into another, and before we know it, we’re throwing away our valuable time and money.

Here are three ideas to prevent you from going “on tilt”

-   Talk to someone you trust and ask them to call you out the next time you’re making a bad choice. It’s a lot easier to turn things around when you hear the concern coming from someone you care about and trust.

-  Take a moment to reflect. It’s amazing how a little reflection can help put things in perspective. Think about the big picture.

-  Take a break. A lot of poker players will do this after a bad loss. Chances are that they’ll be angry, and they are aware of this. So they won’t even try to fight back immediately. Instead, they’ll regroup and wait until they’re ready to play well again.

Are you a poker player? Have you seen any similarities in business?

There are two types of people in the business world: Pirates and Architects.

Architects add value to the world. They design valuable stuff. They create great businesses and build great teams. And they make lots of money.

The ultimate architect is Steve Jobs. He started Apple when he was just a kid, and took it from two kids in a garage to a multimillion dollar computer company. Then, he moved onto Pixar, creating animated movies that made millions of families happy and generated billions of dollars for shareholders. And in the last ten years, he has returned to Apple to execute one of the most amazing turnarounds in business history.

On the other hand, pirates aren’t as interested in making positive difference. Instead, they focus on capturing value for themselves. It sounds selfish, and it is, but here’s the thing: it works.

In the 1980s, a young pirate named Ron Perelman saw an opportunity to take over Revlon, the major cosmetics company. Perelman knew nothing about makeup, but he understood finance, and figured he could make a quick buck by buying the company, making some quick operational changes, and taking the company public.

With the help of his friend Michael Milken, Perelman successfully bought out Revlon. A few years later, he had personally made billions of dollars, making him the richest man in the world at the time.

This works on a smaller scale as well. I was recently talking to an entrepreneur who had personally made tens of millions of dollars investing in foreclosed homes. He was successful because he negotiated lucrative deals with desperate families, taking advantage of their tough financial situation to profit for himself.

I’m not saying that this is right or wrong. It’s simply a choice. Nevertheless, it amazes me that people can make so much money while contributing so little. Perelman was not a brilliant innovator, or even a world-class manager. He was simply an opportunistic businessman who knew how to play his cards right.

Even today, Perelman is more than twice as rich as Steve Jobs.

It got me thinking. For awhile, I believed that people who made the biggest contributions would be rewarded the most. Clearly, I was wrong.

So what actually matters? What is the secret sauce that made some of these pirates so successful?

As I read more about Perelman, I learnt a few interesting things about him…and about pirates in general.

First of all, pirates are amazing negotiators. They understand how to put themselves in the shoes of the other party. They have a deep understanding of any situation, and are constantly thinking about how they can turn it to their advantage.

Secondly, pirates are very impatient. This may seem like a weakness, but it’s actually an unusual strength. By being impatient, pirates are constantly motivated to maximize results.

Finally, pirates are extremely focused on making money. They view changing the world as a distraction, a side effect at best. It sounds cynical, and it is, but it’s this focus that allows them to beat out the competition.

It all depends on your goals. If money is really important to you, then being a pirate is the way to go. Find opportunities and squeeze the value from them. You will do well if you do it right, and honestly, it’s probably the easier road to wealth.

But if your goal is to make an impact, then consider being an architect. This is the only way to make the world a better place. It’s a tough path, but with hard work and a little luck, you can certainly be successful and significant at the same time.

Which are you, a pirate or an architect, and why?

When I was in college, I had one goal: make a lot of money. Then, after I was rich, I could do what I really wanted to do.

Throughout high school and college, I kept asking myself that question: what is my reason for being here…and I could never come up with a definite answer. I was interested in many things: personal finance, entrepreneurship, education, and music.  How was I supposed to find out my primary passion when I had so many different interests?

I started to think differently after reading “The Monk and the Riddle” by Randy Komisar. Randy believes that focusing on just one passion will actually polarize you. You’ll be forced to give up things you genuinely enjoy. The result: lower happiness and decreased productivity.

This made a lot of sense to me. I realized that part of my frustration was that I was afraid to give up interests. Lots of people say that you’ll never be great at something unless you focus on it one hundred percent. Randy challenges this assumption and instead advocates focusing on a portfolio of passions. Find several things that you enjoy and work towards achieving goals in all of them. Our purpose on earth isn’t just to do one thing; there is plenty of time to pursue meaningful opportunities in different areas.

So how do we prioritize? How can we identify a group of activities that makes us happy while still providing us with a good income?

The answer came to me while I was reading Good to Great, the business classic by Jim Collins. Collins talks about a fascinating idea called “The HedgeHog Concept.” The basic idea is to figure out a company’s future strategy by analyzing the intersection of the following three things.

1. What are your strengths? What are the things that you’re really good at, and with practice can become even better?
2. What are you passionate about? What are the things that you really enjoy doing?
3. What is your economic engine? Simply put: how are you going to make money?

While Collins’ book focuses on large organizations, I realized that the hedgehog concept can also be applied to individuals. Looking at the intersection of these three areas can help you define career and life goals, setting you on the path towards earning more money.

Figuring out your strengths

I’m a big believer in playing to your strengths, but it’s not always easy to figure what they are. In general, people aren’t good at self-evaluation – we think we’re good at the stuff we WANT to be good at, not the stuff we’re actually good at.

The best way to figure out your strengths is testing. Don’t just assume that you are good at something. For example, I used to think I was good at memorizing facts. It took a couple of bad grades in my college history classes to teach me that I wasn’t actually that good.

Understanding your passions

When Thomas Stanley was researching his bestselling book, The Millionaire Mind, he found that 80% of millionaires believe that their success is at least partly due to pursuing their passions. Money and security are motivators, but they’ll only get you so far. People who are passionate will go above and beyond to find success.

Conceptualizing your economic engine

This is simple: how are you going to earn money doing what you do? There is no shortage of ways to make money. If you are more entrepreneurial, you can create and market a new product or service. The world today encourages new and unique business models.

For example, there are more than half a million people in the U.S. who make a living blogging. Many people have leveraged the power of the internet to develop personal brands in niches. With tools like Facebook and LinkedIn, it is easier to get in touch with the right people to grow your business.

But entrepreneurship isn’t the only way to make money. There are plenty of organizations – companies, universities, nonprofits – that need diverse talents. Don’t be afraid to create your own opportunities – do some research and reach out to the organizations where you can really make an impact.

No matter who you are or where you want to be, you CAN figure out a way to make money.

What do you love, and how are you going to get paid for it?