Scott Galloway's new book, The Algebra of Wealth; Examples of good and bad business correspondence; A dangerous reminder for why bike safety is so important

1) I just finished listening to the new book by my friend and NYU professor Scott Galloway, and I highly recommend it.

It's called The Algebra of Wealth: A Simple Formula for Financial Security. And it's especially good for any young person and anyone who wants a good primer on finance and investing.

Galloway echoes the two key things I highlighted in my April 30 e-mail, Tips on the "first step" of securing a successful financial future.

Step one, I wrote, "is to build relationships and skills that lead to a successful career, characterized by consistent and growing income." And then step two is "spending less than [you] earn."

Galloway goes into greater detail on both of these subjects in his book and adds a particularly important piece of advice regarding the former to young people: Follow your talent, not your passion, when making career decisions.

He throws a much-needed bucket of cold water on those who aspire to be actors/entertainers, YouTube or Instagram influencers, and professional athletes – pointing out that the odds of building a successful career in the "vanity economy" are close to zero.

Here's an excerpt from his book on this:

If someone tells you to follow your passion, it means they're already rich. And typically, they made their fortune in some unglamorous industry like iron ore smelting.

For most young people, "follow your passion" isn't actionable. By one estimate, only 20% can even identify a singular passion they want to follow. If you have one, it's probably in one of the creative fields, industries that are notoriously exploitative of young, idealistic workers. Only 2% of professional actors make a living from their craft, the 97th percentile of YouTube creators generate enough views to make a mere $15,000 per year. What's much more likely than finding success following your passion is that making your passion a career will spoil it, turning it into a thing you do for (little) money, not love.

Sustained, rewarding passion is something you build, like wealth, by applying hard work to your talents. Unlike passion, talent is observable and testable; it can be more readily converted into a high earning career, and it gets better the more you exploit it. Your mission is to find something you're good at and apply the thousands of hours of grit and sacrifice necessary to become great at it. As you get there, the feeling of growth and your increasing mastery of your craft, along with the economic rewards, recognition, and camaraderie, will make you passionate about whatever "it" is. Follow your talent and passion will follow.

I do quibble, however, with the book's subtitle: "A Simple Formula for Financial Security."

There is no simple formula: You need to do a lot of things right, beyond what I think are the "big three." I wouldn't say it's a "formula," since a lot of factors are involved, but these three steps are:

1. Build a successful career, characterized by consistent and growing income.
2. Live beneath your means such that you're a net saver every year.
3. Invest your savings wisely.

Galloway covers all of these in depth, but also adds many other things like marrying the right person and keeping your marriage healthy, because there are few things that can set you back financially more than a divorce.

Galloway is always putting out insightful content, and I keep up with what he has to say as much as I can. Here are some links for related and recent content from him:

• The Rational Reminder podcast episode: Scott Galloway: The Algebra of Wealth
• The Learning Leader Show podcast episode: The Algebra of Wealth
• Galloway's podcast, The Prof G Show: The Algebra of Wealth
• A TED Talk: How the U.S. Is Destroying Young People's Future
• A related essay: War on the Young

2) Speaking of my April 30 e-mail, which featured my 25-year-old daughter Emily sharing the techniques she has used to network her way into four jobs since graduating from Wake Forest three years ago...

Emily recently shared with me two direct messages she received from people who were applying for jobs at her company, Artlist, asking for an informational interview.

They are great examples of good – and bad – business correspondence.

The first person wrote:

hey Emily, i see you are an AM at Artlist. i got an interview request can I talk to you a bit about your experience there so far? thanks!

The other wrote:

Hi Emily, happy Friday!

I hope your new role with Artlist is going well. My name is [name], and I am currently in my third round of interviews for an Account Manager opening with you all. My role play is scheduled for Wednesday, and I wanted to reach out and see if you might have ~10 minutes to connect beforehand so I can ask a few questions about the position and Artlist in general. Not a problem if you're swamped and don't have the time, but happy to make myself available whenever suits your calendar, if you're open to it.

Thanks for your consideration, and I hope you have a great weekend!

What a difference, eh?

The first person clearly took only a few seconds to dash off something informal and riddled with typos. If someone isn't willing to invest 30 seconds to type a proper message, why should she waste 10 minutes talking to them?

The second person didn't make these mistakes. Emily agreed to speak with him... and he ended up getting the job.

3) Many of my friends and family often worry about the risky, adventurous things I do... but I always tell them that they're worried about the wrong things.

For example, there are certainly big risks involved in summiting hairy peaks like the Matterhorn, the Eiger, and The Nose of El Capitan... but I only do adventures like these maybe two weeks a year in total.

On the other hand, I ride my bike on the streets of Manhattan pretty much every day – and these streets have become a lot more dangerous in recent years.

It used to be that I only had to worry about vehicles and pedestrians. But now there are twice as many dangers with the proliferation of people on electric scooters and delivery guys on high-speed electric bikes.

On Wednesday, I was reminded of the risks when I was clipped by the red car in this picture while crossing Park Avenue at 91st Street on my bike:

I had come to a stop at the median on the left, saw that the light had just turned red, waited and double-checked carefully to make sure the black car (nose of it on the left) had stopped, and rode across in the crosswalk. The light had been red for at least four seconds.

As I did so, the red car was zooming up the middle lane, apparently trying to catch up to the green lights (which doesn't work on Park Avenue anyway) – and we didn't see each other because the black car was between us.

Fortunately, the driver hit the brakes and I was moving quickly enough that he only hit the back part of my rear wheel lightly. So while it jolted my wheel, it didn't knock me over or damage the bike.

But it was scary... and my heart was pounding as I screamed at the driver, "What the @&*# were you doing?! The light was red!"

I escaped unharmed, but a pedestrian would have likely been killed for two reasons:

1. The bright, blinking lights on my bike and helmet probably caused the driver to see me and hit the brakes an extra millisecond more quickly.
2. The pedestrian would have been hit right in the center of the car.

The near miss underscored why I'm a bike-safety nut – and why I encourage everyone I know who rides a bike to also take extra precautions.

Here are the key things I do to reduce my risk while riding:

I own this Specialized street bike. At $1,350, it's expensive... but it's light, maneuverable and, critically, has hydraulic disc brakes – so I can stop on a dime, even in wet weather. Here's what it looks like:

I always wear a helmet – and not just any helmet, but this Lumos one with bright, blinking lights (I just bought a new one for myself and have purchased a number for friends). Here's a picture from the Amazon listing (currently $150):

I have two very bright, blinking white lights on my front handlebars and one red one facing backward on my seat stem. Here's one of the front ones (another picture from the Amazon listing, where it's currently $64):

And here's the pair I bought from Unit 1 ($150 for two lights, plus a charging case):

In short, I'm a Christmas tree while on my bike – with five bright blinking lights on at all times. It might startle people sometimes, but it's keeping me (and them) safe!

This equipment is expensive, but I ride so much that spending extra is worth it to stay safe. I'm quite certain it has saved me from serious injury and maybe even death multiple times!

Best regards,

Whitney

P.S. I welcome your feedback – send me an e-mail by clicking here.