The term ‘new rich’ or ‘nouveau riche’’ is commonly used as a derogatory term towards those who have made their money in their own generation as opposed to having ‘old money’ passed down through generations.
But seeing how the world has changed in the last 50 – 100 years, it’s akin to Arthur Kinnaird saying ‘only gentlemen play football’ in the Netflix series ‘The English Game’.
In fact, I’m not even keen on the term ‘new rich’, but wanted to address it as it first became known in millennial circles when Tim Ferriss coined its new definition in his book ‘The 4 Hour Workweek’
He talks about the ‘freedom multiplier’ which he defines as control over the 3W’s;
- What you do
- When you do it
- Who you do it with
The new rich are those who have the greatest control over all 3W’s.
It may seem like a pipe dream to have complete control over what you do, when you do it, and who you do it with, but I’m here to tell you it’s completely doable.
Right now throughout the world, we have a mental health and economic crisis on our hands.
The pandemic is grinding to a close. A war has broken out in Europe threatening a nuclear catastrophe and showcasing the worst of human cruelty. Inflation is at (a recent) all-time high and a recession across the West is looming. So many businesses and jobs were lost through Covid, people are struggling to make ends meet.
Suicide, divorce, and counseling cases have shot through the roof and governments are doing little to mitigate the growing unrest.
And yet, more money than ever is being invested into the world of Web3.0. The crypto market is already worth $2.1trillion, almost 20% of the entire gold market.
Every week there’s over $500million (probably more) invested into crypto companies and funds, and still, the ‘normies’ (the bulk of the population who are not crypto nerds) don’t even know the difference between a bitcoin, a stablecoin or what the heck an NFT actually is.
Your average man or woman on the street has no idea whether they are coming or going.
- Is the economy growing or shrinking?
- Do we have more control over our lives and decisions or less?
- Are things going to get worse or better?
- How long is this all going to last?
The answer is, that as long as you’re a slave to that which you can’t control, your confusion will last forever.
You’ll never know who’s truly in control, what the markets will do, how the government will respond, or how things will pan out.
You’ll forever be focused on the price of gas, your food bill, whether bitcoin is moving up or down or whether you’re suddenly going to get slammed with a tax bill you can’t afford.
In order to create your own freedom multiplier and join the new rich, you need to focus on what you can control; and that my friend is to become the captain of your own ship.
The most reliable route to wealth is, and always has been, to become a master of your own destiny and build your own business.
Until recently, however, that meant massive outlay, overheads, bank loans or VC funding, or a complete investment of all your savings.
But I’m not talking about taking big risks and yet again being a slave to someone else’s money.
If you look around you, the new rich, or as I like to call them, lifestyle entrepreneurs, are everywhere.
- The influencer couple traveling the world in their RV,
- The solo traveling photographer, backpacking across South East Asia,
- The self-published author who spends 6 months of the year writing from a cabin in Lake Como,
- The print on demand 22-year-old flying business class,
- The podcaster celebrating the birth of their first child with a 3-month sabbatical
- The TikTok superstar being able to buy their parent’s house for them so they don’t have to pay a mortgage anymore
Becoming part of the new rich is about setting yourself apart from the general passiveness of life and becoming less preoccupied with consumerism and owning the latest ‘stuff’ and more interested in sucking the juice out of life.
Becoming part of the new rich is about investing in the experience economy, fueling our minds and bodies with that which serves us, and taking full control and responsibility for how we live our lives and spend our time.
A British friend of mine recently climbed Mount Kilimanjaro.
After spending months training from her apartment in Spain, she took a solo trip over to Tanzania and with the help of what appeared to be awesome guides and a great tour company, made a harrowing journey up the side of this 6000m mountain.
She enjoyed it so much, that later this year she’s heading back to Tanzania to work voluntarily for a women’s organization, dedicated to empowering disadvantaged and marginalized women, through activities and education, to fulfill their potential.
I’m not sure what she’s up to business-wise at the moment, but a few years ago she built an audience teaching people how to present webinars and speak on stage, monetizing via selling ebooks and video courses.
Over the last few years, I’ve watched her hike Macchu Picchu, dance her way across Spain, come to my wedding in Thailand, and travel all over the world.
I wouldn’t like to speculate but I’m pretty sure the last thing on her mind is owning a Tesla or being able to purchase a bored ape (NFT currently worth $350k).
What she owns is far more valuable; full control over what she does, where she does it and who she does it with!
Another good friend of mine is currently touring Thailand. As I live in Phuket right now, we’ve been able to meet up several times for dinner and to exchange business ideas.
He started by bootstrapping a business selling on Amazon. He built a strong brand which he transferred to his own ecommerce store on Shopify and now, via influencer marketing campaigns, runs extremely lucrative and profitable collaborations with popular creators in his niche. (I secretly think he’s going to be able to sell his business and brand for a lot of money in a few years).
He travels when he wants to, where he wants to, with who he wants to, and works his own hours when most convenient to him.
Given the choice of buying a Ferrari or taking a 12-month road trip around Australia, I’m pretty sure I know which one he’d choose.
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These are not hard and fast rules you need to follow. The whole point of the freedom multiplier is that you live life according to your own rules, however, there are some general principles worth considering;
- Lifestyle Design First – The point of investing in yourself and becoming a master of your own destiny is so that you can design your life how you want it. This means prioritizing your ideal lifestyle over and above money simply as a vanity metric. Rather than hustling 24/7 to become a millionaire, work only the hours you need to, to fund your ideal lifestyle.
- Health First – By focusing less on building the biggest bonfire and more on spending time with loved ones or engaging in passion projects, the goal is to create less stress and more fun in your life. This will certainly have a positive effect on your health and well-being, and ironically will probably lead to building a bigger bonfire!
- Relationships First – By building your own lifestyle business, you’ll free up time from working 9 – 5, or spending hours on the daily commute and working overtime to pay the bills. Instead, you’ll be able to grow your communities and be around people who energize and fulfill you, leading to more opportunities and growth.
- Social accountability – As your lifestyle business grows you will naturally start to generate more than your ideal lifestyle requires. Rather than heading back down the consumerism route and buying things for the sake of it, invest in businesses that are changing the world, donate to causes you feel strongly about and help those who can’t help themselves.
- Remember – For the new rich money is simply a route to creating more freedom, not something to create a noose around our necks!
Thankfully for all of us, and even since Tim wrote and published his book which popularized the term lifestyle design, starting a lifestyle business and designing your life how you want to has become infinitely easier with the advancement of technology.
The experience economy is exactly what it says. It’s about spending your hard-earned cash on experiences rather than stuff.
Experiences such as spending time with loved ones or exploring the world or your home country. Having the time and money to learn a new sport, language, or hobby, or spending time engaging in activities you enjoy, rather than having the latest Tesla or Nike shoes.
Don’t get me wrong, I’m all for flying business class or staying in a nice hotel, but the point is to use money for the experience it can give you, rather than getting caught up in the hype of the latest and greatest ‘thing’ and just buying stuff for the sake of it.
The first step in joining the new rich is by ignoring the incredibly clever corporate marketing campaigns aimed to keep you passive and distracted (and poor by the way), and to change your mindset, so your priorities are less about owning things and more about experiencing things.
When I went backpacking across India pre-pandemic with my sister, we met a lovely lady called Geetika at the Jaipur Cooking School.
All she wanted was to be closer to her children who lived in another part of India. However, she felt tied to the house and the school, etc.
When I asked her what it would take to move closer to her children, she wasn’t sure. She just knew it was what she wanted but was sure it would be too hard to make happen.
Often the things we think might be hard are far easier to execute if we have a clear plan.
If you’re not happy, identify what it is you want specifically and change your circumstances.
I understand it takes some work, but surely it’s worth it to create a happier life? Why stay somewhere or keep doing something you’re unhappy with?
You may not be able to change everything you want all at once but as long as you can start to move in the right direction, it’s amazing how doors will begin to open to support your journey.
The first step is in identifying what you do want (rather than what you don’t). So often we stay stuck because we know what we don’t want, but we haven’t clarified what our ideal situation is.
If I ever find myself stuck in this place I take myself away for an afternoon & start daydreaming.
If time, money, family, commitments, etc weren’t a barrier, what would my life look like?
Where would I be, who would I be with, how would I be living?
I try to visualize in as much detail as possible.
The clearer my outcome, the more of a plan I can put in place.
Once you’ve identified the life you’d ideally love to live, you need to calculate how much you need to live it.
The chances are it costs far less than you think it will.
When we first started traveling around South East Asia 11 years ago we were financially free at $3k a month. Some friends of mine were house-sitting around the world having a whale of a time for only $2k a month.
We often think of financial freedom as being seven figures or above, but for many of us, if we’re happy to shed the societal norms of a mortgage, car, and the latest plasma screen TV, we can be financially free on substantially less.
Create a sheet like this to work out your ideal lifestyle budget;
If you don’t know some of the numbers find out!
Google is your friend, plus ask people already living your ideal lifestyle how much certain things cost so you can get a good idea.
If your ideal lifestyle doesn’t involve private jets & Ferraris I challenge you to go beyond $10k a month!
I bet you’ll come out not even close!
You’ll soon find you need nowhere near seven figures to live an amazing life.
So now you have a specific figure you need to create your new rich lifestyle, you can go about building your lifestyle business to make it a reality.
A lifestyle business is not about sacrificing now so you can live well later.
It’s about generating an income doing something you enjoy and are happy to do for years to come if necessary.
There are 7 key steps to starting and growing a lifestyle business;
- Choose your business model
- Choose your niche
- Define your target audience & brand ideal
- Plan for profit
- Build your audience
- Develop your assets & funnels
- Scale & Diversify
See my epic post How to Start a Life Changing Lifestyle Business for a step-by-step process.
A huge part of joining the new rich and becoming master of your own destiny is in how you think.
If you have an abundance mindset this whole premise will sound doable and exciting to you.
If you have a fixed mindset it likely all sounds pie in the sky.
To support the right frame of mind you need to fuel your mind and body with energy giving sustenance!
- Curating your social media feeds so you only see positive, idea-fuelled posts from peers and mentors who excite & motivate you.
- Reading books, watching videos & listening to podcasts by inspirational and unique people who choose their own paths rather than following the status quo.
- Attending conferences on or offline, and networking with or interviewing people who are living the kind of life you want to lead
- Looking after your health, moving every day if only for a walk, protecting your sleep as if your life depended on it (because it does), and consuming energy giving foods & liquids
The more energy sources you feed your mind, the more it will energize the body and vice versa!
‘Anything worth having is worth working hard for’ is something my Mum used to say to me growing up.
These days it’s not that it’s hard work to build a huge following on TikTok for example. It’s uncomfortable work.
Leaving your job to pursue a blogging career will take you out of your comfort zone.
Leaving your family & friends to solo travel across South America is uncomfortable.
Any major change you attempt to make in your life will mean leaving your comfort zone.
It’s what makes it so hard!
- What if it doesn’t work?
- What if it wasn’t really what you wanted?
- What if you made a mistake & things got even worse?
The chances are none of the above will happen and if they do then you’ve simply found another route you’re not happy with and it’s back to the drawing board to try again.
As Winston Churchill said ‘Success is not final, failure is not fatal; it’s the courage to continue that counts’.
The likelihood is that life will change for the better. You will feel more in control of your future & you will not only improve your own circumstances but also the circumstances of those around you.
11 years ago my husband (then partner) sold everything we owned and with the princely sum of around $1000, a couple of credit cards, and our 4-year-old tucked under our arm, set off on the journey of a lifetime.
We’ve traveled & lived in 30+ countries, staying a little too long in Phuket seeing my daughter through school.
We’ve made money, lost money, and made money again. We’ve had great times & terrible times. Times we’ve supped champers and times I honestly didn’t think we’d survive emotionally or financially.
But through it all, we’ve had control of what we’ve done, where we’ve done it, and who we’ve done it with and I wouldn’t change a thing.
Take the leap my friend! Join the new rich & suck the juice out of life rather than letting life suck the juice out of you!