When we’re young, we should invest enough time and effort to learn and master a small set of know-how, that is specialized knowledge and skills, helping us make a living easily later on. If it can help us generate very high income, we can put aside a little every month and invest in income-generating assets such as rental properties or stocks.
Otherwise, the skill set will generate sufficient income to live comfortably at middle-class level. In this case, we can have more free time and effort to invest in other projects, whether it is business ventures or another more valuable skill and knowledge. These new know-hows will reinforce our earning potential in the future or it can help us live what we believe – follow our hobbies for example.
These two kinds of know-how can reinforce each other or can be different from each other depending on our choice. Together, they form our portfolio of skill sets. One is a cash-cow that makes money with little maintenance in terms of time and effort. The other is a star which might create significant impact in the future or satisfy our dream – live a nice life.
This strategy is similar in business. Many companies, in fact, have cash cows and stars. They earn cash from their cows, then feed and nourish their stars. Business people called this strategy: growth-share matrix. You can check it out on Internet.
In learning, we do the same. This is called Learning Strategy.