What if the real definition of wealth had less to do with your income and more to do with your peace of mind? That’s exactly the premise explored in this conversation, which challenges the traditional markers of success and redefines what it really means to be rich. It all starts with a surprisingly simple but powerful equation: passive income greater than your burn (aka, your spending).

Take two people—one a high-flying investment banker earning millions, and the other, a retiree collecting coins from trailer park washing machines. One is constantly stressed, financially strained despite the massive paycheck. The other lives with financial peace, even on a modest income. The difference? Passive income. The banker’s burn exceeds his cushion. The retiree’s doesn’t. That, in its essence, is what real wealth looks like.

Wealth isn’t about how much you make. It’s about how little you have to do. Financial freedom is the ability to eliminate the “shoulds” from your life—the parties you should attend, the meetings you should go to, the people you should please. When you’re financially secure, you get to focus solely on the “musts” and “wants.” That’s liberation.

So how do you get there?

Start with focus. Forget the glorified chaos of side hustles. They’re only useful for exploration—not long-term security. Put your energy into becoming exceptional at something in an industry with high employment. When you’re great at your main hustle, you don’t need distractions. In fact, the time and effort spent on side hustles often dilute your chances of truly excelling at your main game.

Then comes stoicism. Recognize what’s in your control—your spending, your saving, your discipline—and let go of what isn’t. Life throws curveballs. Markets crash. Companies fold. Your job is to manage what you can: how much you save, and where you put it.

Speaking of where, keep it simple. Low-cost index funds. ETFs. Reinvest over time and let compound interest do its magic. It’s slow. It’s boring. But it works. If you’re 25 now and disciplined enough to put away $1,000, you’re setting your future self up for tens of thousands—or more. Compound interest is quiet but relentless.

And for the love of all things rational, diversify. Never go all-in, no matter how shiny or promising an opportunity looks. That “10x” startup might end up as a total zero. If you never put more than 3% of your net worth into one investment, then even a loss is just a bruise—not a mortal wound. Diversification is your financial Kevlar. You might get hit, but you’ll get back up.

But here’s a truth many overlook: building wealth isn’t just a financial game—it’s a full-person project. The myth of the ruthless billionaire is overplayed. Most self-made wealthy people are high-character individuals who built alliances along the way. You won’t get rich alone. You’ll get rich because people want to work with you, want to give you opportunities, and want to see you win. Generosity and integrity are not just moral values—they’re strategic advantages.

And maybe the most counterintuitive idea of all? Sometimes, what feels like giving your kids less is actually giving them more. Instead of shelling out $62,000 a year on private school from age 4 to 18, consider public school plus disciplined investing. That decision could turn into $5.3 million by the time they’re 35. If they miss out on Ivy League credentials but inherit financial freedom? That’s not a loss—it’s a legacy.

The road to wealth isn’t about flash or frenzy. It’s focus, stoicism, time, discipline, and humility. It’s resisting the urge to show off and learning the strength of showing up—for your future self.

The good news? The steps to get rich are simple.

The bad news? They’re slow.

But the ultimate reward isn’t just money—it’s peace, autonomy, and the rare gift of saying “no” without consequence.

Credits: Based on insights from entrepreneur and NYU professor Scott Galloway, shared on the Modern Wisdom podcast with Chris Williamson.