5 Core Steps to Wealth Building

By | August 13, 2019

I wanted to talk briefly just about this idea
of the wealth creation journey and building cash. I talked about this idea of step one,
you need to make sure that you get cash flow right before you do anything. I was in a very
fortunate position when we built out the Metastock Programming Study Guide. I was still at home
living with Mum, so I had my rent and my food and everything else covered. So I went straight
into building info product which is a residual automated style cash flow because I had that
covered. When I say cash flow, really what I mean is
have those basics covered. You need to focus your attention there til it is sorted. So
whether or not you need to get a job. Gary Vaynerchuck in a great book called Crush It,
he talks about this idea of, if you need to go work in a supermarket shelf stacking for
$10 an hour where you work from 9 to 5 and everything outside of that is free time where
you can work on your entrepreneurial endeavours, then do that. Do whatever it takes to get
that sorted. The next step, once you get that cash flow
sorted, Iím all about building your own business. So if you can build your own business that
gets that cash flow sorted, thatís where Iíd focus. Then the next step I would look
to automate your core processes. So when I think about what we were doing, we automated
the SEO component. For me, I thought, yes the traffic thing, what can I do to make sure
it is as automated as possible? The reason you do it automated is so that,
just like McDonaldís, you can plug a fifteen year old in. McDonaldís hire fifteen year
olds to run multi million dollar businesses because theyíve got these systems. Itís
just about following a process. You want to do the same so that you can step out of your
business, this is Michael Gerber material, work on your business not in your business.
Thatís really what Iím talking about for automating that core cash flow. From there, the next step is then I like to
do automated cash flow that is a bit more residual. The core thing is almost about delivering
services, so whether or not youíre a fitness person, the way that you might automate the
fitness thing you might create some processes and then you can get other fitness trainers
in to do the fitness training for you. Thatís how you do that. Then the next step might be, well, maybe Iím
going to create a set of DVDs of one of the people running these little fitness sessions,
Rock Hard Abs in Thirty Days or Less or something like that and come out with a DVD or something
like that, a suite of products that can then supplement what it is that youíre doing.
Itís almost like youíre starting to shift into an info product business. Granted you need to take everything I say
with a grain of salt. I donít know if youíve heard the saying if youíre holding a hammer,
everything looks like a nail. For me, info products is where I started and thatís just
worked incredibly well for me. You might do a slight mix on this, but if this resonates
with you, then it might be worth trying something. Once you start to get that automated cash
flow, then you want to invest that into assets. Now start off firstly focusing, building your
assets for business assets. What Iím talking about there is, letís say, weíll just keep
on using Willows as the example, maybe you start to buy websites related to, all around
the fitness area. So maybe you start selling fitness equipment and you might buy some other
business, the fitness equipment that plugs in. We already know youíve got the market,
so now that youíve got the market you need to start to think ok, what can I sell them? Step one is find that market, then you want
to find out what it is that you can sell them. So now that youíve built up that core business
and automated it, now you want to try and start to think, ok, well what else do they
want to buy? Then you start to add businesses in. This is where I was saying, a lot of people
just start digging holes in all different directions and then they start starting businesses
in other areas. Really what you should do is focus. Then after that, you start to acquire assets
in other classes. To get wealthy, you need to invest in real estate, you need to invest
in trading and you should also look at business as well. So business is usually where I like
to start because you generate cash flow and then I like to funnel that money into real
estate and trading. I donít use those asset classes for cash flow, I use them for capital
growth to make sure that your cash grows. Iím not looking to drawing money from it
to make sure that I cover my day to day expenses. I think the reason business is the best place
to start is because you get the best leverage. You get you. You can put more of you into
it and thatís where youíll get the most money back. Itís a little bit harder in something
like, well you can, for real estate, some people do it for cash flow. They might renovate
a house or something like that. So they do the house up and then sell it. But the problem
with that is, I still fell like itís a big capital event. Itís not consistent income
and itís about building that consistent income.

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