We have always being pressed on the need to build multiple streams of income, enjoy the job we do and build efficiency. While I do agree and in my own journey try to abide by those principles, I have never really found the best way to articulately contextualize why all of these matter. In this digest reflection, I tried to summarize the learning from a recent content I found on YouTube from Myron Golden.
While the principles have always made sense, the teaching provided a very practical and foundational framework to navigate the works of personal finance, investments, career, fulfilment and earning journey.
Disclaimer: 1st time coming across his teaching in my YouTube surfing journey (a pass time and hobby of mine😉)
Key takeaways
1. Creating wealth has more to do with you and perspective around how wealth is created.
2. Four windows of wealth with different perspective and introspection.
3. What you see is more dependent on your perspective than reality. Reality is fixed.
4. How we look at money or get money will depend on how we think about money.
5. To be fulfilled in life, you need;
◦ Creation – Create stuff other people value. Create.
◦ Connection (people) – Connect with other people. None of us have all the source. We all need each other for different aspects of life. Inspire.
◦ Contribution – Do something for people that can’t do anything for you. Legacy.
You can be partially fulfilled but not totally fulfilled if you don’t have all 3 or working towards them.
The 4 Windows of Wealth
1. Have a job – Sell a portion of your time for someone else’s money. (No time, no money). Just enough to survive, pay bills and not quit.
2. Own/buy a job – Spend money to provide services, no automation (tech/system), delegation (pay other people). (Have money, no time). Automation and delegation buys back your time back
3. Own a system – Build efficiency, system and leverage. Automation and delegation system.(Have money, have time). You can always make up in leverage what you lack in ability. You don’t have to be the best at every thing. When you 1st move into this arena, you don’t make money (or a lot of it) when systems are being built. Jeff Bezos/Elon Musk come to mind here.
4. Sow money seed – Invest money made from owning a system. This is the window we should all build towards.
Cash flow patterns of the wealthy
1. Income window – Source of income (usually a job). Poor/rich/middle class has do with your perspective more than how much you make. What you do with money when you make it is the key.
2. Outdoor window – Working to pay the bills and wealth reducing liabilities.
3. Wealth reducing liabilities – Pay bills, buy on credit what you can’t afford, pretend to look rich.
4. Income producing assets – Using your income to generate additional streams of income. Cash leverage (bank loans, reduced cost of capital vs using income). Income producing assets pays for 1-3.
When you shift focus to how to attain income producing assets, it will change the rest of your life.
BJA | TDM 