I describe wealth from a technical standpoint as having passive income that exceeds my expenses, 40% savings, and taxes.
The point I achieve this is the point that I am financially free. My time is not obligated to be traded for money for my own survival and those I produce for financially.
From a functional standpoint, I describe wealth as just that. No obligation to trade time for money. Also, it is the ability to treat money the way I treat oxygen. To just live and not think about it. To be free from it because of the abundance of its existence in my world. That’s wealth.
How is wealth achieved?
Now that all sounds great, but the reality is it is easier said than done. Most of us can dream about that state all day long, but it doesn’t mean it is going to happen for us.
Today, I want to share how to get there. The fact is, it’s a LOT of work. But so is life. Work is only noticed when the results aren’t there. When I work a LOT and it pays off a LOT, I tend not to be concerned about the amount of work I need to do.
So, yes, it is a lot of work and it is hard. But it’s also simple. There is a difference between something requiring a great commitment and something being confusing or unknowable. I want to emphasize that wealth is not confusing and it is not unknowable.
What do I need to know about wealth?
Well, first I need to know where I am in relation to wealth.
Picture a scale like the one I’m about to show you here.
At the top is wealth. The ability to no longer trade time for money.
And as we go down the scale, the amount of time exchanged and the amount of money earned lessens and lessens.
Until we reach the bottom of the scale which is poverty. Notice, in poverty, I also do not have to trade time for money, but I am also less able.
Wealth and poverty have the same achievement, but different abilities.
Scale of Wealth
- Wealthy (money received with no time traded)
- Well off (money received greatly exceeds time traded)
- Comfortable (money received slightly exceeds time traded)
- Middle Class (money received barely exceeds time traded)
- Stressed (money received = time traded)
- Broke (money received is slightly less than time traded)
- Poser (money received is less than time traded, but acts like one is wealthy)
- Insolvent (money received is a great deal less than time traded)
- Lazy (minimal money is received and minimal time is traded)
- Poverty (no money is received and no time is traded)
Depending on where I’m at on this scale, it is going to be more work for me to get wealthy. That’s just the fact.
For me personally I started out at the bottom. We all did. As a baby, I traded no time and got no money. As my life progressed, I began to progress up the scale. I stalled out at lazy for a while. Then I was insolvent for a while. I spent my time being broke and stressed. And finally I started exceeding the time I was trading with money. I could have decided to stay in comfortableness, but I progressed. I’m now well off. I’m not wealthy yet (passive income exceeds expenses, 40% savings, and taxes) and I still have a lot of work to do.
But the fact is I went from the bottom to near the top and I’m 27. I want to show you what I’ve learned on how to get there fast!
It starts off with a triangle.
I’ve learned a lot of great things form a triangle. Wealth is no different.
I picture a triangle and in the top corner we have Income. The bottom left corner we having Saving. The bottom right corner we have investing.
As we drag each corner out, the triangle expands in size, representing the expansion of a person’s wealth.
It’s important to note that expanding any corner of this triangle would grow the size of the triangle overall.
Just like shrinking any corner of the triangle will shrink the triangle overall.
But in order to really go fast, the Income corner is the most important for growing the other two.
Expansion towards wealth…
Starts with me increasing my income. The more I can earn, the more I can save, and the more I can save, the more I can invest, which increases the amount I earn and save and the cycle just continues exponentially.
This is such a powerful concept and I believe if simplified and implemented would make anyone wealthy.
Why aren’t more people wealthy?
Well there are a few reasons for that.
First, is that we are told it is complicated. It’s not. I just showed you how to do it in 3 steps. But the industries that sell and manage wealth need it to be complicated because if it wasn’t they’d be out of a job.
Second, is that on the scale of wealth, many people get stagnant. I’ve done it and I see it all around. It’s insidiously easy to get stuck on that scale. For me to just get above being stressed on the scale was a ton of work and most people aren’t doing the work.
Third, is that when it comes to the triangle, people tend to shrink one or more of the corners. Think even of the concept of retirement. Retirement says when I get wealthy I stop earning. That’s me shrinking 1 corner and the most important corner of my triangle. This means my entire triangle will begin to shrink and I won’t build wealth.
What about not trading time for money?
You may be thinking, why get to the point I can retire if I’m just going to keep working to earn income?
Well here is the thing. Time is made up. Money is too.
They are what is known as an arbitrary. A made up fact inserted into an equation to make the equation make sense. The problem with arbitraries is they complicate things.
Let’s simplify what time really represents. It is a measurement of motion and action. So let’s just call it what it is. I’m trading my motion and action for money.
But money is an arbitrary too. It’s also made up and is really just representative of an exchange of value. So let’s call it what it is as well. Money is value.
So at what point in time would I want to stop exchanging my motion and action for value?
For me? Never. I would never want to cease being valuable to those around me.
The reality is I won’t be obligated to trade time for money in order to merely survive. But I’ll be free from the obligation to go exchange my actions for massive value without considering my own financial necessities!
That’s wealth! Having enough passive income to exceed my expenses, 40% savings, and taxes to the degree that I realize “trading time for money” is a game, not financial slavery. And when it becomes a game it becomes fun and when it becomes fun I want to keep playing.
And that is why wealth is simple!
If you want to learn more about concepts like this and how you can progress up your own wealth triangle, click here.
Own Your Potential,
Jerry Fetta helps create financially educated and wealthy families who navigate their economic futures with certainty and help build prosperous communities around them. If you’d like to experience this for yourself and your family, then get more information about Jerry Fetta and Wealth DynamX by going to Membership.JerryFetta.com