A post hit the top of Hacker News yesterday with the title “Create value for others and don’t worry about the returns.” It generated over 300 comments, most of them surprisingly civil, which tells you it struck a nerve.
And it made me think about something I have been wrestling with for years: what if the best financial strategy is not actually a financial strategy at all?
Before you close this tab — I know how this sounds. I know it sounds like the kind of thing someone with a trust fund says at a dinner party. “Just create value, man. The money follows.” Easy to say when your rent is paid. I get it.
But hear me out, because the data actually supports this more than you might think. And I am not talking about vague platitudes. I am talking about measurable, documentable financial outcomes that correlate with value-first thinking.
Disclaimer: This article is for informational and educational purposes only. It does not constitute financial advice. Always consult with a qualified financial advisor before making investment or career decisions. Past returns do not guarantee future performance.
The Paradox of Chasing Returns
Let me start with a number that haunts me: according to DALBAR’s 2025 Quantitative Analysis of Investor Behavior, the average equity fund investor earned 4.1% annually over the past 20 years, while the S&P 500 returned 9.7% over the same period. The gap? About 40,000 on a 00,000 investment over 20 years.
Why the gap? Not because investors picked bad funds. Because they chased returns. They bought what was going up. They sold what was going down. They watched CNBC at 3 AM and made decisions based on feelings instead of fundamentals.
My financial advisor friend Tom — who has been in the industry for 22 years and has the stress wrinkles to prove it — puts it this way: “The people who do best in my practice are the ones who set up something reasonable and then go do literally anything else with their time. The ones who check their portfolio daily are, without exception, the worst performers. Without exception.”
That “going and doing literally anything else” part? That is where the value creation comes in.
What “Create Value” Actually Means (Practically)
When I say “create value for others,” I do not mean start a charity. I do not mean work for free. I mean something much more specific and much more self-interested than it sounds.
I mean: solve problems that people will pay you to solve, and focus on getting better at solving them.
That is it. That is the strategy.
Here is why it works financially:
Income Growth Beats Investment Returns for Most People
A study published in the Journal of Financial Planning found that for individuals earning less than 00,000 annually, the single highest-impact financial lever is income growth, not portfolio optimization. Getting a 15% raise has more impact on your 10-year net worth than switching from a 7% annual return to a 10% annual return on a 0,000 portfolio.
And what drives income growth? Being good at something people need. Creating value.
Sandra, a software developer I know, spent three years obsessing over her stock picks. She would spend 10 hours a week on research, analysis, Reddit threads, technical indicators. In those three years, her portfolio modestly outperformed the S&P by about 1.2 percentage points annually.
Then she redirected those 10 hours per week into building a SaaS tool that solved a specific problem for e-commerce businesses. Within 18 months, the tool was generating ,200 per month in recurring revenue. Her 1.2% portfolio outperformance on a 0,000 portfolio was earning her about 60 extra per year. Her value creation project was earning 0,400 per year.
She still feels a little stupid about the first three years, which honestly makes me like her more.
The Compounding Effect of Reputation
There is a financial concept that does not get enough attention: reputation compounds.
When you consistently create value for others — clients, employers, your community, your industry — your reputation grows. And reputation is the most valuable financial asset most people never think about, because it does not show up on a balance sheet.
According to research from LinkedIn Economic Graph (2025), professionals who are referred into positions negotiate 12-18% higher starting salaries than those who apply cold. Referrals come from reputation. Reputation comes from value creation.
Derek, who runs a small consultancy, told me about his pricing journey: “When I started freelancing, I charged 5 an hour and had to hustle for every client. Ten years later, I charge 00 an hour and have a three-month waitlist. Nothing changed about the hours in my day. What changed is that I spent a decade building a reputation for solving a specific type of problem better than anyone else in my niche.”
He did not get there by optimizing his Roth IRA contribution schedule. He got there by getting really, really good at one thing and letting that value compound through relationships, word of mouth, and track record.
But What About Actual Investing?
I am not saying ignore your finances. That would be irresponsible, and this is a finance website, so I would be undermining my own existence.
What I am saying is: the investing part should be simple, automated, and require minimal ongoing attention. The Bureau of Labor Statistics reports that Americans spend an average of 3.8 hours per week on personal financial management. For most people, 30 minutes per month would be more than enough if they had a sensible system in place.
Here is what that system looks like, according to most credentialed financial planners:
- Emergency fund: 3-6 months of expenses in a high-yield savings account (the Federal Reserve’s 2025 Survey of Consumer Finances found that 37% of Americans cannot cover a 00 emergency expense — fix this first)
- Retirement: Max your employer 401(k) match, then Roth IRA, then additional 401(k) contributions. Target-date funds if you want truly zero-effort investing
- Debt: Pay off anything above 7% interest rate before investing beyond the employer match (see Consumer Financial Protection Bureau guidance on debt prioritization)
- Automate everything: Set it up once, revisit annually. Done.
That is it. That is the financial plan for 90% of people. The Certified Financial Planner Board’s research consistently shows that complexity in personal finance correlates with worse outcomes, not better ones. The best plan is the simple one you actually follow.
Once that is on autopilot, redirect every ounce of financial energy into creating value. Into getting better at your craft. Into solving bigger problems. Into building things that help people.
The Math That Changed My Thinking
Let me run some real numbers. Say you have two people, both starting at age 25 with identical 0,000 salaries:
Person A: The Optimizer
Spends 10 hours per week on financial optimization. Achieves 11% average annual return (beating the market by about 1%). Invests 00/month. Salary grows at 3% per year (average).
Person B: The Value Creator
Spends 30 minutes per month on finances. Achieves market-average 10% return via index funds. Also invests 00/month initially. But redirects the time into skill development and side projects, resulting in 7% annual salary growth (Bureau of Labor Statistics data shows top-performing employees see 5-8% annual increases through promotions and job changes).
At age 45:
- Person A’s portfolio: approximately 32,000 (impressive!)
- Person B’s portfolio: approximately 80,000 (because higher income = higher contributions over time)
- Person B also has a higher salary (32K vs 08K), a stronger professional network, and more career options
The optimizer outperformed the market. The value creator outperformed the optimizer. And the value creator did it while spending roughly 95% less time thinking about money.
(Full disclosure: these are simplified projections. Real results depend on tax situations, specific investment choices, career trajectory, and about a thousand other variables. The point is directional, not precise. Consult a qualified financial advisor for personalized projections — seriously.)
When This Advice Does Not Apply
I want to be honest about the limitations of this framework, because I think too many personal finance writers present their ideas as universal truths.
This “create value first” approach works best if:
- You have your basic financial safety net in place (emergency fund, manageable debt)
- You have time and energy to invest in skill development or side projects
- You work in a field where value creation can translate to income growth
It does not work as well if:
- You are in a financial crisis — focus on stabilization first (the National Foundation for Credit Counseling offers free financial counseling)
- You are close to retirement — portfolio management matters more when you are drawing down, not accumulating
- You have a windfall to invest — 00,000 sitting in cash needs a proper investment strategy, not a “just create value” handwave
The Real Return on Value Creation
The Hacker News post that inspired this article got it almost right. “Create value for others and don’t worry about the returns” is great advice, but I would modify it slightly:
Create value for others, automate your basic financial plan, and then stop worrying about the returns.
The returns will come. They always do when you are solving real problems for real people. But they come as a side effect of being useful, not as a direct result of financial optimization.
Tom, my advisor friend, has one more line that I think about a lot: “In 22 years, the wealthiest clients I have are not the ones who picked the best stocks. They are the ones who built the best businesses, the best careers, the best relationships. The stock market was just where they parked the money they made from being really, genuinely good at something.”
I am not sure I can argue with 22 years of evidence.
(And before anyone emails me — yes, I still check my portfolio. Once a quarter. For about 15 minutes. Then I close the tab and go write something that might actually help someone. The returns seem to be taking care of themselves.)
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