Ryan Severus Chin,is an Investor who deals in Private Equity ,an advocate for Social Change and Autodidact ,he took online to share his personal story from generation to generation and analysed how important Networking is in amounting wealth.Read Also: 3 Secrets The Rich Know And The Middle Class Ain’t Aware Of
I have friends both worth tens of billions and friends in the humble middle class.
In the years I’ve known both groups there has been one glaring difference:
The latter group tends to be unaware of the power of networking.
My paternal grandfather was one of the pioneer structural engineers of Singapore. He built up many structures and taught some of the first engineers in our country.
His grandfather was a simple craftsman. The table that I’m sitting under in the photo above was built by him. His handiwork lasted generations.
His father before him was a humble fisherman.
They dreamt of better lives.
They saw how money could give a better life for their children so they saved up as much as they could.
By the time my grandfather came around he was born into a middle class family; No longer needing to craft sturdy wooden tables or gutting fish to get by.
In the 1970’s my grandfather took over his father’s construction company after working in it for many years.
The company brought in big profits. According to my grandmother’s calculations, this amounted to ~$2M in total. Today, that money would be worth a lot more.
My grandfather was a kind and generous man, contrasted by his step-siblings who were lazy leeches. They constantly asked him for money to fund their luxurious lifestyles, which he gave without asking, while they spent like no tomorrow.
They eventually sucked him dry; moving to the UK when he had no more left to offer.
Before his father died, his step-siblings, along with their mother, convinced his dying father to sign over everything to them in his will. When he passed, my grandfather was left with almost nothing.
With their newfound inheritance, his step-siblings enabled their children to start a hedgefund in New Zealand while another started a now famous bread chain in Singapore.
My father watched his father’s financial rise and fall, and saw the need for financial literacy and hungered for a financially better tomorrow.
So after studying in Oregon, Dad came back and joined the banking sector; developing an incredibly sharp eye for sound investments and created financial instruments of his own to leverage himself.
He was so good at leveraging that, combined with a loophole he spotted, he bought a condo for free. Not even then, because the bank ended up paying him 0.5% PA (after inflation) in extra income based on the condo’s price. This was his first major investment decades ago. The condo is valued at $2.8M today.
He did this in his 20’s. Looking back, it is no surprise with a mind like that it that he would have eventually made a career in hedgefunds.
Dad was aware, early on, on the power of the networking effect.
So he networked and made friends in high places.
The average net worth of my father’s close friends would be about $300M. Not enough to be considered filthy rich, but enough to be considered wealthy.
They talk about business, investing, and money. Ideas flow and brainstorming sessions happen every single saturday.
As a result of being well connected, business opportunities have been presented to them that otherwise would not have been.
They travel the world together, mostly playing golf, and do business together.
I don’t think Dad has a single close friend who hasn’t done something spectacular with his or her life.
If there was a single bad influence, I have never heard of him or her.
I notice a similar effect in the circle of friends I have who fall between the $100m-$40B category. The higher the number goes, the more curated their friends are.
People who are ambitious, hard working, highly accomplished, and well connected fill their guests lists. People who do not add value are “dropped”.
Among us, we do business together, trade ideas, and brainstorm frequently. This dynamic wasn’t modelled after my father, but has come naturally.
This is contrasted by my other circles of friends who are in the middle class or lower income bracket ranges. The majority of their friends tend to be those who party a lot more than they work.
From the feedback I’ve gotten, they see networking as distasteful or have no interest in doing so due to different life goals. Yet in the same breath they also tell me they dream of being wealthy.
“Your network is your networth”.
This is a saying that rings true.
Your friends will influence who you are, what you do, and magnify your ability to change the world.
They will open doors for you, bring opportunities to you, and help you discover things you’re capable of that you’d never have imagined.
Or they can bring you down, encourage you to laze around, and influence you to exchange tomorrow for today.
Your network influences who you are, and what you can do.
Meritocracy is a dual sided coin.
The world is both work meritocratic and socially meritocratic.
You can’t just work hard- you must also network well if you wish to be wealthy.