WHY YOU NEED TO KNOW ABOUT THE WEALTH TRIANGLE

There is a principle of wealth that can make you extremely wealthy once you understand it. It’s
actually made up of three pieces and called the wealth triangle.

This concept is created by the successful entrepreneur and marketing expert Dan Lok.

Let’s have a look at each corner of the wealth triangle…

1. High income Skills

The first corner of the wealth triangle is about developing your high income skill. A high income skill
is defined as a skill that has the potential to make you over $100.000 a year. In this case you are
selling your time for money. But you are selling it for good money.

Examples of (what can be) high income skills are copywriting, consulting and social media marketing.

Developing a skill like this gives stability to your life. Because the skill is not easy to learn and once
you master it you will possess something that can’t be taken away from you.

2. A Scalable Business

The next corner of the wealth triangle is a scalable business. This is defined as something that you
can grow without a lot of infrastructure. It could be an internet based business like an ecommerce
business.

While a high income skill provides you with income your scalable business, if set up correctly, will
provide you with cash flow. The cash flow should rise as you continue to scale.

3. High Return Investments

This is the last corner of the wealth triangle. Here we define a high return investment as an
investment that will provide you with an annual return of at least 10% year in and year out. This is a
big goal that requires you to take some risks. But it is a goal that everyone can achieve.

The ultimate purpose of high return investments is to build your net worth. You should NOT look into
high return investments before your scalable business makes so much money that you basically don’t
know what to do with the cash coming in.

Many people start investing before they have built the proper financial foundation. Let’s say they
invest in real estate. Their margins may be so small that they will have to go into foreclosure if a
tenant unexpectedly moves out. Then instead of learning a correct lesson from that experience more
often than not they will conclude that “real estate doesn’t work.”

What Makes The Wealth Triangle Concept a Little Bit Different?

Most advice you see online encourages you to start your own business as soon as you possibly can.
The message is “You can’t get rich without owning your own business.” There is much truth in this
statement. It will be difficult to go from 6-figures to 7-figures in revenue without having a scalable
business.

Famous author Robert Kiyosaki has built an empire around his Rich Dad brand. His concepts has
influenced the entrepreneurial world enormously in recent years. It was Kiyosaki that came up with
the so-called cash flow quadrant.

The quadrant is made up of Employee, Self-employed, Business owner and Investor. Kiyosaki points
out that it’s better to be a business owner or investor since they have money work for them while an
employee or a self-employed simply works for money.

At first the advice to “work on your skills first” seems to contradict the cash flow quadrant. Why not
start out in the business quadrant immediately?

High income or not, your critics will say that you are just trading time for money and they are right
about the fact that this is not passive income.

But when you practice the wealth triangle and work on your high skill first you can later use that skill
as a leverage when you build a business or start investing.

In one of Mr. Kiyosaki’s books his fictitious rich dad even advise him to get a sales job. Sales is clearly
a high income skill that all successful entrepreneurs must master.

Less than 6 percent of the population reach an income level of $100.000 or more. You’re clearly at
the top of the income bracket when you get there.

Can A High Income Skill Be Turned Into a Scalable Business?

The objective answer to the question in the headline is yes! We see it all the time on the Internet. A
successful copywriter like John Carlton has turned his expertise into information products that he can
sell with high profit margins.

On the other hand we see many beginners that has just started their own business create courses
and eBooks about Internet marketing. They are building their new business on something they only
have a theoretical knowledge about.

While there are exceptions this approach to starting an online business will most often fail. And that
is simply because they don’t know how to market their own course on online marketing!

Stacking On Your Success

Let’s say you’re a successful social media manager. You know Facebook advertising, you have helped
several clients successfully launch products online. You know what it takes! When you launch your
own product you’re not starting from scratch. Instead you’re stacking on your success.

To reach an income of $100,000 or more also says something about a person’s character and work
ethics. When you reach this level you probably got many pieces of the success puzzle already in place
and are ready for the next level.