Mastering the Wealth Triangle by Dan Lok should be taught to every kid in the nation.
It’s a profound insight by Dan. These dope principles ring very true in my entrepreneurial journey.
Its lessons like these are the reason why I’ve been following Dan’s teaching so closely as of late.
My entrepreneur journey has followed this concept to a T.
Wanna read my case study?
The wealth triangle perfectly explains why the local lead generation business that we are coaching to others have such high success rate.
Dan explains it as the essence of 15 years of business experience. He's been a millionaire mentor since he turned 30.
His core teaching, the Wealth Triangle, is his formulation of what enables people to both acquire wealth and keep it.
It explains the who, where, what of money.
Its the path of getting rich & staying rich.
Here's the deets:
The first thing you need: Get High-Income Skills
Skills pay the Bills.
Your pay is directly proportionate to how much value you’re able to deliver to the marketplace with your skills.
Dan defines a "high income skill" as a skill that can earn for you at least $100K-$120K per year. So basically $10K per month.
I couldn’t agree more.
I used to make only $35K per year, hoping & wishing for a better life, so I would be consuming personal development material, which there is nothing wrong with that, but just having mindset alone is not enough.
I wish someone back then would of told me that “hey you need to go get some high-income skills”
One of my all-time favorite Dan Lok Quotes “you need both mindset & skills”
"You need both Mindset & Skills"
My life changed permanently when I actually invested in a mentor that taught me the high-income producing skill of SEO (Search Engine Optimization) & combining that with local lead generation marketing. Learn about this coaching program here.
I quit my $35K a year job, & now I was working for myself from home making $10K per month within 7 months of learning that new skill set.
This advice is amazing if taken seriously, it would resolve so much confusion & questions about entrepreneurship.
One of the most common questions I hear is:
“Hey, I have some money saved up, what should I invest in?”
The correct answer is to go get high-income skills.
AKA: Invest in a course, mentors or go to a seminar.
Invest in Yourself!
But you might be asking:
Why this should be your number 1 option instead of going out and investing in a business right away like real estate?
Here's Dan's answer to that:
"Because in business a lot of unpredictable shit can happen like what are you gonna do if your tenant moves out and you can’t find a new tenant, & then the toilet breaks? now you’re losing money & you can’t even afford to fix your own toilet!" - Dan Lock
or the economy could tank & everything could go to shit.
But if you have a high-income skillset, you can always count on yourself to produce finances to support your life or a new business.
"Formal education will make you a living; self-education will make you a fortune."
Your skills are your skills. Nobody can take that away from you. Your skills give you financial confidence.
That knowing that even if they were to take away everything away from you, you know you can get back to where you were at.
Its a powerful knowing to have, & no doubt changes the kind of person you’re on a deep level.
Another awesome Dan Lok quote
“Don’t seek financial freedom, seek financial confidence”
Dan Lok continues to hone his skills.
& its obvious to tell, his presentations / communication skills are top level, yes he is trading in time for dollars, making about $15K per speech or more. It is okay because these skills give him financial stability.
Second Piece: Scalable Business
Now Dan doesn’t believe everyone needs a scalable business.
If you have high income skills & make smart long term investments you can be doing very very well.
Just look at someone like Floyd Mayweather.
However if you’re an entrepreneur at heart then one of the key things is to get into a scalable business.
Restaurants are not scalable business. There is too much overhead, staff, the building, so much management, etc
Scalable business is a business that you can grow without a lot of infrastructure, hiring a lot of people, without a lot of overhead.
Why is a scalable business so important?
Your high-income skills provide you with income.
Your scalable business provides cash flow. Its being able to make money in life without trading in your time.
I talk about this all the time, this is why I love the local lead generation business.
You’re making money while you sleep.
Every lead generation site I build & rank, it begins generating income for me month after month and there’s virtually zero maintance or overhead required, so I can scale this business.
Third Piece: High Return Investments
Dan Lok defines a "high return investment" as an investment that will provide for you at least 10% annual return, year after year.
The purpose for this is not to provide you with income but it builds your net worth.
You get to this level, when your passive income streams are spitting out so much money you don’t know what to do with it.
Until you get there Dan recommends investing back into your business to grow your scalable business. He feels that investing in your marketing of your business should be the most important thing to invest in.
I agree with him 100%.
If you could spend $500 in marketing and get a client at $1000-$2000 per month, then that 200-400% return on investment.
Then why the hell would you invest in some sort of mutual fund that gets you few percentage at best?
High-Income Skill is you making yourself money.
Scalable Business is people you hire & systems making you money.
High Return Investments is money making you money.
Why Dan Lok’s Wealth Triangle is so profound?
The Wealth Triangle teaches you what to do with your money so that you can begin multiplying it.
It also answers the age-old question “What business should I start or invest in?”
Dan’s answer “NONE”
your first step should be to develop your High-income skills.
Make that $10K per month first.
The problem with most entrepreneurs is they jump into a business with no prior background, sinking their life savings into it without first developing high-income skills.
Next thing you know the biz doesn’t pan out as they had hoped & now they’re drowning.
High-Income skills give you the stability.
Stable high-income gives you the finances that you can invest into your business. This is the key.
With the local lead generation business, it is a high-income skill plus it’s also a scalable business.
Which explain the high success rate of the students within the coaching program.
To expect you can just jump into some business when you have no prior experience or having any real high-quality skills that can deliver tremendous value to the marketplace, just doesn’t make any sense.
The marketplace is self-correcting.
It’ll separate the wheat from the chaff.
Even Dan Lok admits that at first he failed at so many businesses over and over again going further & further into debt.
From vending machine, real estate, network marketing, you name it, he tried it all.
It was only after he invested in a mentor that taught him high-income skills, he was able to finally build his first successful business.
Dan learned the skill of copywriting, then used those skills to become a marketer for businesses.
This was exactly my secret to success in building my own online marketing business that’s now doing over $50K per month.
Which in my opinion is one of the most sought-after skill on the internet.
Dan Lok believes in continuing to sharpening his high-income skills.
More high-income skills you have, the more income you’ll generate, the faster you can scale your business.
Here's the best business to start in 2021: