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Three money principles that you must know to get rich

So, let’s talk about the only three money principles that you must know, need to know to get rich and?  Stay rich. The name of the game is not to get rich but to? Stay rich. There are a number of principles. You know, when I look through my own private journal. All the mistakes that I’ve made. I have about roughly probably 29, 30 of them. But I picked the three that I believe are the most critical, which is what I’m gonna share with you today. The king of high ticket sales, world’s highest-paid consultant, media celebrity, acclaimed TEDx speaker, international bestselling author, Dan Lok.

So money principle number one and that is what I call mastering the wealth triangle. Mastering what? The Wealth Triangle. For my inner circle members, I’ve been beating this concept on a million times but this might be new for you. It’s very simple but incredibly profound. You’ll see why in a moment. This is not some theory or philosophy. You will not get this from a book. I develop this, I created this. Basically it’s the essence of my 15-plus years of financial business experience. Experience gained down and dirty, in the channel, roll up my sleeves in the world. This will give you the who, what, why, and when of money.

Here’s how it works. The wealth triangle has three pieces. How many? – Three.  The first piece is what I call high-income skills. What is it? High-income skills. How I define high-income skills is a skill that has the potential to make you over $100,000 a year. $100,000 or sometimes 10 grand a month. However, you want to use it, but $100,000 a year, has the potential to make you $100,000 a year or more per year. In this case, you are trading your hours for dollars or you’re trading your hours for high dollars. You’re turning your skills, your experience, your talents, and you’re delivering value to the marketplace in exchange of money. So, you are selling your time, but for good money.

High-income skills. A number of skills, I’d say my facility, you have Hassan, hard-copy writing, you could be consulting, you could be doing social media management. I have a friend of mine who is actually a ballroom dance instructor and he makes over 100K a year. That’s considered a high-income skill, too. So whatever high-income skill you might be thinking of. Now, why is that important? With your high-income skill it gives income and it gives you comfort. It provides that stability in your wealth triangle. In your wealth triangle.

Now the second piece of the puzzle, the second step is what I call the Scalable business. What is it? – Scalable business. Now, what is a scalable business? Tell me. Something that you can? Repeat. Something that you could grow. Something that you could grow without a lot of infrastructures. Is the restaurant a scalable business? No. No, because every time you want to open a second location. I’ve got to sign a long lease, I’ve got to put in a lot of money, I’ve got to renovate a place. I’ve got to hire a lot of people. Yes? Yeah, break-even funnel, maybe, maybe it’s an internet type business, it could be an eCommerce business. But something you could grow without a lot of infrastructure, or without hiring a lot of people without a lot of overhead.

Now, why is a scalable business important? Because your high-income skills provide you with income. Yes? Your scalable business provides you with cashflow. It provides you with cash flow. That was the second step. Now we can grow it. The third component, that’s what I call high return investment. High return what? – Investment. Now how do I define high return investment? I define high return investment as an investment that will provide you with a 10% annual return, year in and year out.

A minimum of 10%. Minimum 10% year in, not the first year, but year in and year out I consider that a high return investment. In some cases, it could be more. Now, high return investment doesn’t provide you with income, but it builds your net worth. What is it? Your net worth. Your net worth. Here’s the triangle and here’s why it’s profound, so I’ll go into a little bit of detail.

High-income skills you make your money. How many of you got that? Yes? You make your money. This scalable business is now people or systems making your money. Yes? Hello? Yes. High return investments now are making your money. Yes? So, three very, very different things. Now here is the challenge. This will solve all your– You’ve asked me what should I do? What should I invest? A lot of people sometimes come up to me, what business should I start? This will answer all the questions today.

Question number one. Dan, I am just getting started. What business should I start? My reply is none. Don’t start a business when you have no clue and no business plan. Because what is the very first step you should do? Hello? – Develop a high-income skill. Develop a high-income skill first. Make that 10K a month first. Trade hours for dollars, there’s nothing wrong with that. Trade hours for high dollars, because this gives us stability. How most entrepreneurs. They don’t have high-income skills, they just jump into you. They think it’s a scalable business. They sink their life savings into it. You see it a lot on Dragon’s Den or Shark Tank.

I don’t know anything about business, I came up with this amazing idea, I change my house, I put up everything I got, I borrowed from my family and friends. And I have now 2 000 board games in my garage. Dragon, please give me some money. And the Dragon says? No. Which is a joint venture broker? Very good, very good. So what happens is, in business, the same thing with my own career, and over now so many years. Do you have ups and downs in business? Yes? What I said, your cash flow pattern.

Some year you’re good, some year you’re not good. But very early on, since I was back in my early 20s as a copywriter and then moving to consult and coaching and speaking. My high-income skills. Every year I strive to increase my earning ability, with my high-income skills. So although I made some bad investments. I’ve done like 10 tech ventures as an angel investor, lost money on all 10. That tells me I’m not a very good tech investor, right? I thought I’d go into the marketing, but shit, right? So I learned my lesson there like you can’t know why. All 10 lost money. And I’ll share some lessons with you from that.

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