How can I make more money if I don't have a high-paying job?

You can make more money by focusing on creating value and capturing a higher percentage of it. This can involve freelancing, starting your own business, building software, or writing a book, rather than just having a single contracted job.

Is sales a bad thing, and how can I overcome that belief?

Sales is often perceived negatively, but it can be reframed as a service. A successful sale is a win-win transaction where both parties benefit. Overcome negative associations by seeing it as offering value and making an offer, not forcing a purchase.

What's the best way to learn skills to increase earning potential?

The most effective way to learn valuable skills today is through self-learning using online resources like YouTube, online courses, books, and podcasts. Formal training is often unnecessary for many high-income skills.

Are starting a business or investing really that risky?

Not necessarily. The risk depends on your approach. Sensible investing in index funds and building businesses with validated ideas or service-based models are far less risky than perceived. In fact, having a job can be riskier due to lack of control.

What incorrect beliefs about money are taught by school and society?

Schools and society often instill beliefs that a job is the primary way to make money, that sales are sleazy, that formal training is the only way to learn skills, and that business and investing are inherently too risky.

Key Moments

The psychology of making money

Ali Abdaal

Education3 min read22 min video

Mar 19, 2026|4,956 views|434|45

Ali Abdaal Ali abdal

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Key Moments

TL;DR

Unlearn harmful beliefs about money: jobs aren't the only way, sales serve, self-learn skills, and business/investing can be managed risks.

Key Insights

Money is made by creating value and capturing a percentage of it, not solely through a traditional job.

Sales should be viewed as a service, a win-win transaction, rather than a sleazy or adversarial interaction.

Skills crucial for making money can be acquired through self-learning via online resources, not just formal education.

Starting a business or investing is not inherently riskier than having a job; the approach determines the risk level.

Challenging societal beliefs about wealth, sales, and learning is essential for increasing earning potential.

Rethinking the connection between effort, value creation, and financial reward is key to achieving financial freedom.

Rethinking the Definition of Making Money

The traditional belief that a job is the primary means to earn money is a significant limitation. The video reframes money-making through the equation: Money = Value Created x Value Captured (%). A job is just one way to execute this equation. Money is fundamentally an exchange of value, where value is created by solving problems or fulfilling needs. Understanding this equation allows for a broader perspective on earning potential beyond salary expectations.

Value Creation and Capture: Beyond the Employee Role

While employees create value for their employers, they only capture a percentage of it. Entrepreneurs and freelancers, by contrast, have more control over the value they create and capture. This involves taking on responsibilities like customer acquisition and business operations. By embracing these roles, individuals can increase their earning potential by capturing a larger share of the value they generate through their skills and efforts.

Deconstructing the Negative Perception of Sales

Societal conditioning often portrays sales as sleazy or manipulative. However, the video argues that sales are fundamentally about service and mutually beneficial transactions. A successful sale occurs when both parties benefit: the buyer receives something of value, and the seller receives compensation. Reframing sales as a service, where one makes an offer rather than forcing a transaction, is crucial for overcoming psychological barriers to earning money.

The Power of Self-Directed Skill Acquisition

The belief that skills must be acquired through formal education (universities, courses) is outdated. The internet has democratized learning, making self-teaching the most effective way to gain marketable skills. YouTube, online courses, books, and podcasts offer accessible resources for learning virtually any skill, from coding to copywriting, which are essential for increasing earning potential in the modern economy.

Addressing the Perceived Risks of Business and Investment

Fear of risk associated with starting a business or investing often stems from societal narratives and poor execution. While some approaches are indeed risky (e.g., speculative single stock picks), sensible strategies like investing in diversified index funds or starting service-based businesses with validated ideas have historically proven to be relatively safe and effective wealth-building methods.

Challenging Conventional Wisdom for Financial Growth

Having a traditional job can paradoxically be riskier than entrepreneurship due to external factors beyond an employee's control, like company restructuring. Conversely, running one's own business, even with market fluctuations, offers greater control and visibility over one's financial future. By unlearning limiting beliefs instilled by school and society, individuals can unlock their true earning potential and achieve financial freedom.

Mentioned in This Episode

●Software & Apps

●Companies

●Organizations

●Books

●People Referenced

Unlearning Limiting Beliefs for Financial Growth

Practical takeaways from this episode

Do This

Understand money as value created and captured, not just a result of a job.

View sales as a service and a win-win transaction.

Embrace self-learning for acquiring valuable skills.

Approach business and investing with a nuanced understanding of risk, focusing on sensible strategies like index funds.

Control your financial future by creating value and capturing a larger percentage of it.

Leverage online resources like YouTube, online courses, and podcasts to learn new skills.

Consider starting a service-based business or businesses with validated ideas.

Invest in diversified assets like index funds for long-term wealth growth.

Avoid This

Believe that a traditional job is the only way to make money.

Associate sales with being sleazy or adversarial.

Think that formal training is the only path to acquiring skills.

Perceive business and investing as inherently too risky without understanding the details.

Randomly pick stocks or make high-risk, unvalidated business ventures.

Fear making offers or talking about money; reframe it as providing service.

Limit your learning to formal educational institutions.

Common Questions

Money is made through the equation: Value Created multiplied by Value Captured as a percentage. This emphasizes creating value for others and capturing a portion of that value, rather than solely relying on a job.

Topics

Risk Management Mindset & Self-Improvement Business & Entrepreneurship Value Proposition Skill Development Financial Literacy Wealth Creation Investment Strategies Sales Strategy

Mentioned in this video

Books

Feelgood productivity

The speaker's book, which he uses as an example when discussing sales as service.

Companies

Trading 212

A platform for managing investments, sponsoring the video, offering features like no commissions, fractional shares, and a cashback card.

YouTube

Highlighted as a powerful, free resource for self-learning a vast array of skills, including those relevant to making money.

People

Brad Clonce

A researcher who has studied money scripts taught in childhood, highlighting how early beliefs shape financial attitudes.

Media

The Wolf of Wall Street

A film mentioned as an example of media that can frame sales in a sleazy, adversarial way.

Organizations

Cambridge University

The speaker's alma mater, mentioned to illustrate that even prestigious institutions don't solely teach the practical skills needed, with YouTube often being a primary resource.