Everything in life has fundamentals.
Learn the fundamentals and you can understand future concepts.
When studying wealth, most people see the surface level options: Jobs, businesses, 401k’s, bitcoin, etc.
What people DON’T see are the driving forces behind how to use them; coupled with assumptions based on their past.
The Wealth Triangle, which was pioneered by my personal mentor Dan Lok, is here to remove the confusion and get you on the path to financial confidence.
You read that right, financial confidence, not freedom.
Financial Freedom is creating enough passive income to pay for your expenses.
Financial Confidence is knowing that if you were to go broke one day, you could get it all back the day after.
Both are great, but in the worst case scenario that your money streams dried up, which one would you rather have?
The path to wealth starts when you realize you are short on skills.
Throughout high school and college, I went from job to job never figuring out what I really wanted to do.
The one thing I DID notice, was that my skills were increasing. I started getting some life experience and began learning more and more people skills until I eventually found myself in a sales position.
Now, sales isn’t the only high-income skill, but it is a simple one that anyone can learn if they applied themselves.
So let’s break down what high-income skills are:
Dan classifies these as any skill that generates over $100,000 a year.
So what’s so special about these high-income skills?
Anyone who has created wealth in their lives – Steve Jobs, Bill Gates, Grant Cardone, Gary V, Dan Lok – have all figured out one thing:
You will never save your way to becoming rich, you have to increase the amount of income you bring in year after year.
It’s not sexy, but increasing your income by increasing your skills and knowledge is a consistently proven road to wealth and success.
The second part of the wealth triangle is what Dan calls a scalable business.
Now here’s a disclaimer: You do NOT have to build a business to get rich.
There are plenty of people who have just learned a high-income skill and knew where to put their money (we’ll get to that later).
I’ll even go as far as to say most people SHOULD NOT build a business.
The reason is simple: Most people aren’t cut out for it.
In this day and age, entrepreneurship has sex appeal. It’s the “cool” thing to do.
Everyone’s hopping on board just because they see an ad of some 18 year old making six figures and creating “financial freedom” for him/her self.
Sure, these stories are out there. But what people don’t understand is that going from a job where you’re being told what to do everyday, to building an actual business and figuring out every next step on your own isn’t something many can do.
This isn’t to say it’s not possible or that building a business is the right or wrong path, just be aware that it’s not for everyone.
Back to explaining scalable businesses.
If you’re going to start a business, start with the end in mind. The biggest and most successful businesses are the ones that reach the most people.
Say you were thinking about starting a restaurant. You’re already limiting your reach since you can only serve one city/state at a time.
Now, of course, you can build it up and franchise it, but it’s going to take years to even break even, and overall, you’d just be starting off on the wrong foot.
The right business to start? An online business.
Start-up fees are low, your reach is global, you can outsource work all over the world, and if you didn’t know this yet, the internet is still in its baby phase.
Once you make the money, your goal now is to hold onto it and multiply it.
To get to this point, a few things has to have happened:
- You’ve invested into YOURSELF by learning skills and knowledge that generates 6 figures annually.
- You have financial confidence
- You’ve saved a lot more than you’ve spent
- You’re ready to have your money work for you
At this stage, don’t be too eager.
Just because someone else has invested into something, doesn’t mean you should as well.
Investing is a skill.
Never invest in something you don’t fully understand and do lots of research on what pay the best returns.
The way Grant Cardone calculates a deal is this: He will only invest in something if in the worst possible outcome, he can still make money on his investment.
Just something to keep in mind.
If you follow this blueprint, I have no doubt that you will eventually become rich. Or at least free from the shackles of money.
It may take a few years, but I can promise you it’ll be faster than working at a job you hate until you’re 75, you only have $100,000 saved up, and one day you may have to go back to work.
What kind of life is that?
Don’t settle for living comfortably or living the same life as everybody else.
Work on your high-income skills, start a business if it makes sense and you truly want to add value to the world, not just make money, and save to invest.
Get rich, and let me know when you get there.