As you scan every word of this article you`ll begin to discover new ways of creating wealth and most importantly, ways of staying wealthy.
No point in getting rich if you`re worried about losing it, either.
I’m gonna be breaking down the wealth triangle for you and show you exactly what each section means. By the end of this article, there will be absolutely no doubts in your mind about this strategy.
So, what is the wealth triangle, anyway?
It is a wealth strategy pioneered by Dan Lok, known worldwide as the King Of High Ticket Sales, he`s a millionaire mentor, author of 13 books, and TEDx speaker.
He the creator of the High Ticket Closer™ Program, a live training that takes average people and turns them into high performers with the ability to earn multiple six figures a year.
The program now counts with students in over 120 countries.
Dan has built an 8 figure empire over the years, participates in multiple companies all over the world and has now millions of followers on social media.
Breaking Down The Wealth Triangle
The wealth triangle has three distinct pieces:
- High Income Skill
- High Return Investment
- Scalable Business
Let`s break down each one and explain what they mean…
Don’t just work hard, work hard at working smart. - Dan Lok Click To Tweet
High Income Skill
With a high income skill, you`re trading hours for dollars… high dollars. You`re leveraging your expertise to deliver value to the marketplace.
A high income skill should be your main focus when you`re still trying to become financially independent. It gives you the stability necessary to pay for your lifestyle expenses.
I didn`t say high income job, did I?
What`s the difference?
In a job, your income is dictated by a boss. You`re never in control.
With a skill, your income is controlled by you and the value you bring to the marketplace.
What do you think it`s the difference between a restaurant and an e-commerce business?
A restaurant requires additional infrastructures to grow, opening new locations, hiring new staff members.
With an e-commerce business, assuming your offer converts well, all you have to do is ramp up your ad budget and here you go (kind of).
Let`s face it… not everybody is tailored to be an entrepreneur.
We both know that there`s a lot of gurus out there promoting entrepreneurship but the problem is that most people fail in business because of one simple reason…
They don`t have the skills, in the first place, required to grow and manage a business.
Pretending you want to grow your business, where are you gonna come up with the money to scale it?
Investors, family, friends… maybe!
But when you have your high income skills first, you`re not taking your profits out to eat and pay for your lifestyle. By doing this, you`re slowing the growth of the business down.
There are no dangerous investments, only dangerous investors. - Dan Lok Click To Tweet
High Return Investments
The last piece of the triangle is where you really get wealthy. At this point, you`re not trading time for high dollars, you`re generating passive income while you sleep.
A high return investment is one that has the ability to generate at least a 10% return every year.
Now, we`re not talking about losing money here…
… you`ve got to know what you`re doing.
At this point in the wealth triangle, you want to look for help from a professional or do your own research about what investment suits your situation.
Let`s now recap and look over some of the mistakes people make when trying to implement the wealth triangle strategy so you can avoid them.
*Source: Dan Lok`s YouTube Channel
Wealth Triangle 101 – Common mistakes at the high income skill level:
- Not increasing your earning ability every year
- Failure to master one skill when adding a new one
- Falling into the shiny object syndrome trap
Wealth Triangle 102 – Common mistakes at the scalable business level:
- No high income skill in the first place
- Not suited to be an entrepreneur
- Taking profit out to pay for your bills and other lifestyle expenses
Wealth Triangle 103 – Common mistakes at the high return investment level:
- Greed takes over and you lose a bunch of money
- Investors don`t know their rules of investing and principles to follow
- Handing the money to the “professionals” without having any control of it
The Wealth Triangle Is Not For Everybody
The bottom line is you don`t need to have all the pieces of the wealth triangle to live a comfortable lifestyle.
Having a high income skill and putting your money to work in high return investments, you can do very well.
Whatever your unique wealth strategy is, keep the principles in mind and remember that by reading this far you already know more about finances than most people on this planet.
If you think about it, most of your friends, colleagues and parents don`t have high income skills, scalable businesses and most certainly don`t have high return investments.
I`d love to hear your thoughts…
What takeaways could you draw from this discussion?