Why Too Much Efficiency Kills Your Creativity

Two Phases of Creativity

Creativity isn’t something that only “creatives” need. Anyone who creates useful ideas is always in high demand.

And in our services-dominated economy, we need to be creative to succeed.

  • Sharing a helpful idea during a work meeting
  • Making your pitch unique for a client
  • Creating “original” art
  • and so forth

Netflix is a great example of being competitively creative in today’s high-paced world.

In the early 2000s, Netflix was a struggling DVD-rental subscription service with little creativity. Netflix co-founder Reed Hastings tried to cut his losses by selling the business to Blockbuster, then a major video and game rental store. But Blockbuster declined.

With the country going through a recession, Hastings had to lay off 30% of his staff.

This forced him to rethink things. If Netflix were to survive, it had to be creative and think of new ideas. It wasn’t just about efficiency anymore. They had to do everything differently.

In an interview1Source: L.A. Times, Hastings looked back at some of Netflix’s low points. And he reflected:

“If you think of the last 300 years, we’ve had factories providing enormous economic value, and so a lot of our society has the factory as the model of the organization. Very top-down, very process, very efficient.

But it’s not the right way to run a creative organization. An organization that needs new ideas needs to be able to make mistakes.”

Nowadays, productivity books and blogs are everywhere (you’re reading one right now). This shows how much people want to live a productive lifestyle. But we can also overdo it.

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The Perfect Time to Start Investing: When Prices are Low

start investing and risk

As I’m writing this in October 2022, the S&P 500 — which tracks the top 500 companies in the United States — was at its lowest since March 2020.

Meanwhile, the global inflation rate is at a level we haven’t seen in 40 to 50 years. On top of that, we have a list of other global challenges, ranging from climate issues to war. It’s not looking good.

To people without experience with investing in the stock market, it seems extremely risky to start investing when prices are low.

The assumption is that stocks are down for a reason. On the surface, that seems true. When there’s unrest in the global economy, stocks are generally lower, which is actually a positive thing for long-term investors.

But it’s perceived as bad. They assume that investing is somehow more dangerous when prices are low. But the relationship between risk and reward is not a complicated topic at all.

Put simply: When perceived risk is high, expected returns are high because real risk is likely low. 

Let’s break that down.

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5 Passive Income Ideas to Get Inevitably Rich

Passive Income Ideas Get Rich Slowly

In 99 out of 100 cases, it takes years to get rich. But since the media loves highlighting that one person who got rich overnight with a few passive income ideas, many of us have a screwed-up idea of how people get wealthy.

While we know that get-rich-quick schemes never work (otherwise they wouldn’t be called that), most folks don’t know that building wealth is not that complicated.

The problem with getting rich is that it takes time. And in this impatient world, people just don’t want to wait. They want to be rich now.

But if you decide to go against the grain and commit to building long-term wealth, you will inevitably become wealthy if you do one thing: Increase your net worth every year.

The best way to make that happen is to have multiple income streams. If you only have one or two income streams right now, that’s fine. With consistency and time, you’ll eventually get there. It doesn’t happen overnight.

If you’re serious about building wealth over time, you will accomplish that goal because you control your behavior. When executed well, the following passive income ideas will increase your net worth gradually.

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You Have “Enough” Money When You Can Afford 2 Needs

enough money

Do you have “enough” money? A study found that the ideal income for a typical American family to have “emotional well-being” is around $60,000 to $75,000 annually.1Source: Nature Journal of Human Behaviour

In an interview, Warren Buffett said he would be “very happy” with $100,000 a year, despite his billionaire net worth.2Source: CNBC Meanwhile, John Bogle, the pioneer of modern index investing and founder of the Vanguard Index Fund, says “enough” is “one dollar more than you need.” Which I think is also a good definition.

The truth is that “enough” depends on our personal circumstances.

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