At the end of Felix Dennis’s book, How To Get Rich, he outlines eight “secrets” to getting rich.

In terms of actionable advice on wealth creation, these are right up there with Naval Ravikant’s must-read How To Get Rich tweetstorm, along with his accompanying podcast episodes. Felix was a publishing tycoon and the creator of Maxim magazine, so he knows a thing or two about wealth.

Despite the name, though, the reality is there are no secrets to getting rich. There are only models that move you in the right direction.

Here’s Felix admitting this:

“Looking for the ‘secret’ to getting rich is not a sensible exercise. If there are such secrets, then I have never discovered them. But, as humans love lists and ‘secrets,’ here is my best shot at a very short list. A kind of ‘secret’ recap. The essence, if you will, of what I have learned along the way.”

So, take this with a grain of salt. But also understand if you use these principles for long enough, good things will happen.

Here are the eight “secrets” of getting rich, along with commentary and links to further reading.

1. Analyze your need. Desire is insufficient. Compulsion is mandatory.

To get rich, you must have a compulsion for it. And you must know exactly why you want it.

Wealth will not bring you happiness. Or creative fulfillment, or a clear mind and healthy body. It will not bring you loving relationships. It will not bring you peace.

That’s why you have to consider seriously whether or not it’s something you want to pursue. The irony of Felix’s book, How To Get Rich, is that he spends the first half trying to convince you not to try.

Here’s his warning:

“It is my hope that this book will cause you to consider very carefully whether you are truly driven by inner demons to be rich. If you are not, then my earnest and heartfelt advice to you is: do not on any account make the attempt. What are riches anyway, compared to health or the peace of mind that even a modicum of contentment brings in its wake? In and of itself, great wealth very rarely, if ever, breeds contentment.”

Wealth gives you only one thing: freedom. If freedom is what you want, becoming independently wealthy is the only way to do it.

2. Cut loose from negative influences. Never give in. Stay the course.

Most of your friends and family don’t want you to get rich. It’s not because they don’t love you - it’s because your success brings with it a mirror to their own timidity.

Here’s Felix explaining this:

“They will tell you, if you listen, about the impossibility (not the foolishness) of trying to make yourself wealthy. In doing so, they drain confidence and optimism from you… Two cardinal fears rule their concern. Firstly, they fear that you are placing yourself in harm’s way—and, to them, that cannot be a good thing. Secondly, they fear that if you should succeed, you will expose their own timidity to the light of day.”

Getting rich is a lonely undertaking. Most people you meet with have no interest in it. That’s why the internet is such an important tool to connect with those on the same path you are. Use it to keep up your confidence and remind yourself why you’re on the journey.

And always remember, success is nonlinear. It comes in fits and starts, and it’s darkest before dawn. Stay in the game.

3. Ignore “great ideas.” Concentrate on great execution.

Ultimately, what you end up doing is a lot less important than how you do it.

Execution beats obsession every single time. From Henry Ford to Bill Gates, Felix writes:

“Their ability to take chances and to subsequently exploit initial success counted more than their inclination toward a particular industry. Their execution of a strategy trumped the subject of their obsession.”

Great ideas are a dime a dozen. But when you pair a great idea with above-average execution, that’s when things heat up.

4. Focus. Keep your eye on the ball marked “The Money is Here.”

It’s much easier to fill a bucket of water from a river than a puddle. Just the same, it’s much easier to get rich in a growing industry flush with new cash than it is to get rich in a shrinking one on its way out.

Felix admits that if he had kept his eye on the money, he would have made much more of it:

“Instead of rushing to where the money was, I kept on digging in the relatively poor pit of ink-on-paper until the money, reluctantly, came to me… If you wish to become rich, look carefully about you at the prevailing industries where wealth appears to be gravitating. Then go to where the money is!”

Felix reminds us that new industries offer three things:

• availability of risk capital

• ignorance

• the power of a rising tide

If you position yourself correctly, you’ll find yourself making money just by luck. That’s where you want to be.

5. Hire talent smarter than you. Delegate. Share the annual pie.

There are only so many hours in the day. So, to get rich, you need leverage. This includes capital, labor, code, and media. You should delegate and automate as many tasks as you can to robots on the internet with code.

But if you do hire labor, Felix says to make sure they are smarter than you:

“As an owner, or an owner in training, you must always be alert for the telltale signs that here is a candidate for promotion and delegation. They are smart. Perhaps smarter than you are. They work hard and they appear to love the work they do… They want your job. Especially in the early days of your company, delegation and promotion are among your most powerful weapons in getting rich.”

If you have trouble delegating, getting rich will be hard for you. Learn to let go and let others excel at what they do best.

6. Ownership is the real “secret.” Hold on to every percentage point you can.

Equity is everything. It’s the only way you can disconnect your inputs from your outputs by owning a piece of a business or product. That’s how you get rich while you sleep.

You can get equity in a few different ways:

• You can own equity in a business that you start.

• You can own equity by buying a piece of a publicly-traded company (a stock) on the open market.

• You can own equity in a start-up company that you invest in privately (via Angel.co, for example).

• You can own equity in a product or a piece of intellectual property (IP) like a book, script, or other artwork.

I’ll say it again: Equity is everything. Here’s Felix:

“Nothing counts but what you own in the race to get rich. If you haven’t much skill, or much wit, or much talent, or much luck, and yet you insist on owning more than your fair share of any start-up or acquisition, then you can become rich. If you take what you’re given, you will probably not get rich.”

In all likelihood, you will not get rich working for someone else. This realization made me reconsider my entire “career plan.” If you don’t own anything, you’re forced to trade time for money for the rest of your life. And that’s what I’m trying to avoid.

7. Sell before you need to, or when bored. Empty your mind when negotiating.

Never forget what your goal is: to get rich.

So if you can make a great sale on something you’ve built, do it. It’s better to sell from a position of strength than wait until you need the cash:

“Try to sell before you have to. You’re an entrepreneur. Your companies are not your ‘babies,’ they are tools for acquiring wealth. Try to sell them before they peak. Buyers require what is called ‘blue sky’ (further growth) to get excited and offer a great price.”- Felix Dennis

8. Fear nothing and no one. Get rich. Remember to give it all away.

Fear destroys ambition far more effectively than any obstacle you’ll encounter along the way. To get rich, you must master your loss aversion demons and learn to take smart risks repeatedly.

There are a few things that can help conquer fear:

• Define your fear of the unknown.

• Try living out your worst-case scenario.

• Learn to take small actions to curb fear.

• Realize you fear a downside that doesn’t really exist.

Felix’s advice?

“Fear nothing. Another easy-to-say and impossible piece of advice. Tough luck, chum. Life’s a bitch and then you die. Get used to it. It isn’t going to change anytime soon… You cannot banish fear, but you can face it down, stomp on it, crush it, bury it, padlock it into the deepest recesses of your heart and soul and leave it there to rot.”

There is it - Felix’s eight “secrets” to wealth creation. Start now.

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SOURCES

Dennis, Felix. How to Get Rich: One of the World's Greatest Entrepreneurs Shares His Secrets. Penguin Publishing Group. Kindle Edition.