THE WEALTH CREATION FORMULA

Despite what anyone tells you, it is impossible to get rich without income. It cannot happen.

Yes, there are things that make income less attractive than other ways to create wealth. Income is basically the money you earn from a job, or the money that comes from a stock—possibly called dividend income. The reason a lot of people say income is the least desired method is because it is the most heavily taxed.

The reality is you aren’t going to get away from it. The whole game is rigged. But if you understand the entire wealth creation formula you can get the game to work in your favor. Just know the game is rigged. The entry to the game is income—there’s no way around it.

The question is: what can you do right now to increase income?

Let’s say you don’t have a job. We all start without a job.

What can you do without a job to create income today? The first thing, number one, is to have a target for your income. Let’s say my brother, six-year-old, wants to create wealth now. I can’t send him to college, he’s 6. Why would I wait 10-12 years? You understand I want him to create wealth NOW. Our system, remember I told you it was rigged? Well what they tell you is, “You want to get a job? Go get a degree from college.”

That’s ridiculous.

You don’t need to go to college to get a job or get income. To start from zero, no money in the bank, no investments, you need income—not student debt. You need a strategy and a formula. Nowhere in the steps of the Wealth Creation Formula does it say: Go to college.

It doesn’t matter if you make $10k or $400k a year, you need income first.

You could be in poverty, you could be making $30,000 a year with a family of four, you could be a single mother making $19k or maybe most or all of your money comes from the government. We all start from somewhere. Maybe you’re in the middle class. Maybe you only have enough money left each month to go to the movies and have dinner once–and if you go twice you won’t be able to make your bills on time.

Maybe you’re making between $70k and $110k a year and have been for a while. You’re better off than those in your neighborhood. You have a better car, you don’t worry about bills, you don’t worry about new clothes for your kids—but you never have quite enough to make a big play to push into a wealth position.

You feel like you’re never going to get rich.

No matter how much income you have, unless you have created all the steps you are in Step One: Creating Income—it’s the front door. You MUST walk through it.

You need to learn to create revenue and then get even better at it.

I create more revenue in shorter periods of time now compared to in the past. I first had to learn to create revenue—and then I got better at it. Income is your first step, your entry, your front door.

You must fortify this thing and make it strong. You have to add value to what you do to make it bigger and you even if you hate your job—or your current position in life—never complain about the income. No matter how small it is, how dirty your hands have to get, don’t complain. I’ve done jobs I hate. I still do jobs today I hate. I never complain about them.

Never complain about the job you have. Your job is creating income and making sure you have a job that will be there for you tomorrow. Once you’ve made sure of that, fortify it and make sure you cannot be replaced by some piece of technology or new employee. Make sure you become that person the organization you are with wants to continue to send income.

All wealth starts with this front door right here—income.

Once you have begun to create income your only concern should be to increase your income.

The only thing you should care about is, “How do I increase this income I created from this first job?” It doesn’t say to get a second job, a third job or a fourth job. It says to increase the income of the first stream you created. Get it?

Whether you are mowing lawns or selling stocks as this first stream of income, once you have fortified this income don’t go start a new business. Don’t look for a second flow elsewhere. Make your first flow bigger, make it juicier, I want you to increase the intensity of it. Don’t even worry about saving right now—all you want to do is get a job and increase that income flow.

Don’t get caught up in a business plan, just follow the steps.

Back to the example of my brother: One time I taught him how to get money from Stephen G. He asked him, “What do I have to do for you to pay me a hundred dollars?” Remember, he’s six. Stephen says, “I need you to run five laps.” Excellent! He runs five laps and says, “I did that fast—how about a tip? How about a little bonus for speed?”

You have to understand, he first created wealth asking how to make a hundred, fortified it by accomplishing the job and then pushed to increase the income from that task, that job.

Don’t worry about a business plan. You need to first create income so that if you need to go to the bank later you can show how much income you made—because sooner or later they are going to ask and it’s like this all along the Wealth Creation Formula. As you take steps along the wheel you create, fortify and increase. You don’t branch off, skip, or go in a different order. Step one is to create income and step two is to increase income.

Don’t become saIsfied with your first income flow.

Once you get your income your second job is to increase that income. Now if you’re satisfied, which is what happens to most people, you’re misinformed— which is how the system wants you to be. Remember, it’s rigged.

Most people are satisfied because they are comparing their situation to someone else’s and that’s where they stop. They stop their wealth creation once they have surpassed someone else’s situation in life and then wonder why they never become wealthy.

You never get wealthy creating one income flow and never increasing that income. Think of it like water. You’re at an oasis, you drink and get one bottle. You think you’re fine, you’re hydrated and that’s good so you go on your way. Then another guy comes by and drinks and fills up a bottle, then waters his camel and fills up that bottle again and again before leaving. He knows when he’s further on he won’t have access to that oasis. And you go to take a sip and your one bottle already went empty miles back... and now you’re thirsty again.

Don’t depend on one flow that never increases.

This is what separates the haves from the have nots.

Step 3 of the Wealth Creation Formula is to save it all. Okay, you went from making $45k a year to $60k or $60k to $80k or maybe you went from making $0 a week to $200 a week. Now you save it all—and understand this is how I created wealth.

Maybe you’re mowing grass for $200 a week. That’s step one, create the income. Then the second step is to increase the income. Get more lawns to mow in the same amount of time, so you learn to mow lawns faster. Compress your time.

Then you start realizing you can increase your income—it becomes real when you start making the money. You start to imagine going from $200 a week to $1400 to $6000 and now you have a little business going. So you expand to a landscaping business. Now you’re dominating the market.

You’ll never get there if you don’t save—you’ll be broke forever and working harder than when you were at zero.

Save for the big play. You won’t make it to wealth without sacrifice.

Up until this point you’ve been struggling so you won’t be sacrificing much anyway. You need to keep living at the same standards. Don’t buy anything new, no new debt unless it brings you postive return. Your clothes won’t change. Don’t buy a big watch. You want to operate so to the world it still looks like you are broke—but keep stacking that money away.

The trick I did from the age of 18 to 20 was I rated my expenditures from 1 to 5. Look at your bank account, look at your checkbook. Go over the last 30 days and rate everything from 1 to 5. 1 means its necessary, 3 means it’s a maybe, and 4 and 5 you didn’t need. If you have something around the house that’s a 4 or 5 take it back to the store. Return it. Get your money back and save it. Now you’re back to Step 2: Increasing Income.

Sacrifice the trips to Starbucks, the extra pairs of shoes, too many movie nights, all these things that won’t build you wealth. Pay the price today so you can pay any price tomorrow. You want to be the guy or girl at the table who can cover the whole tab without even thinking about it.

Be a miser early in the process if you want surges and spikes in wealth.

If you want a real shot at huge, giant, MASSIVE surges and spikes in wealth you must be willing to save it all in the meantime. It sounds tough, and it is, but it’s worth it. Once you start seeing your savings hitting levels you’ve never had before you’ll realize the value of the sacrifice. Even if you don’t trust yourself right now that’s okay. I couldn’t trust myself at the beginning.

You have to squeeze down, manage and control your money. Most people don’t know how to make money. Fewer people know how to keep it. The reason why is they only keep tiny little pieces. Why do you want to increase your income if you’re just going to get rid of most of it?

Don’t spend all week killing yourself to earn money, sacrificing time with your family, just to blow your paycheck drinking over the weekend. The system is rigged for this. How simple is it to blow your paycheck at the bar? How complicated is it to learn about wealth-creating investments? You have to hire a ‘professional’ to manage your money it’s so complex... but you don’t need to hire someone to show you how to drink your money away. It’s simple and it keeps people broke and struggling.

Most people move to this step prematurely and end up broke.

You’ve been told to invest in little pieces, here and there and to diversify your porqolio—this is all wrong. This is a part of the system that holds people back from real wealth. You don’t want to start with little and end up with little. You want to make HUGE moves and for that you need to make HUGE investments. You need to know what you’re doing with what you invest in.

The only reason to save money is to invest money. Your parents didn’t tell you that part. They were taught to save money just to save so they could hope to maintain a ‘quality of living’ when they got old. How has that worked out for them? Nearly 29% aged 55 and up don’t have retirement savings or a traditional pension plan. They saved to save, they didn’t save to invest and the return got them nowhere.

You are putting money away to make surges in wealth, to multiply money. The first thing you must do is commit to money. You must say, “I want to be wealthy!”

If you invest for a rainy day you’ll be broke when a meteor hits.

If you want money you must commit to wealth, commit to wealth with your family and friendships, commit to wealth in your relationships, commit to wealth with your brand, commit to wealth your community, and commit to wealth with your business.

How do you do that with investing? Expend money with the expectation of achieving a profit or material result. Don’t just throw it in a 401k or IRA—by the time you have any real value there you will be old. You can’t easily reinvest it. It’s no good.

You need to setup financial schemes. Yes, scheme, which the dictionary defines as, a “large-scale systematic plan or arrangement for attaining some particular object or putting a particular idea into effect.” You do this with property investments or developing a business venture.

There are only two reasons to have money: 1) buy essentials, and 2) invest to create new money. Money was invented because it’s easier to carry around and trade at the market than a goat or a chicken.

But how do I take little to no money and become wealthy?

This Wealth Creation Formula is all about creating wealth from no money, but you will never get wealthy if you do not save to invest. There are two reasons people don’t become wealthy: 1) they never earned any real amount of money, and 2) they never invested big enough amounts in big enough investments.

Look at all the NBA players who make unbelievable amounts of money and have none of it once they stop playing. They file for bankruptcy, they are broke after years of making millions and millions of dollars. They never learned how to invest to expand their wealth. They expended money they didn’t expand their money. You must expand your money with the expectation of achieving a profit to take that money and make it bigger.

That’s the only goal of saving, the only reason to save it all.

You are never too old or too young to start saving to invest.

Whether you’re 25 years old, 45 years old or 55 years it’s not too late and it doesn’t matter what level you are at. If you’re broke, starting from zero, have $10k in the bank, $100k in the bank or you have a million to invest—you aren’t going to go bigger without saving to invest and you must only invest when you KNOW the market you’re investing in.

Most people invest too early, not too late. What I mean is they invest with pennies and nickels because they haven’t set aside a big chunk to invest in something. If you invest pennies and nickels you’re only going to get pennies and nickels in return—I want to get gold bars the size of trucks from my investments. I want wealth so massive no situation on the earth could take away from it.

The big players on this planet invested all-in with what they believed in. Railroads, the automobile, the cellphone... all of these were HUGE investments of time, energy and money and they didn’t mess with anything else until that first investment was so big they had money to play around with.

You aren’t going to have secure wealth without muItiple flows of income.

Like I said before, you can have one HUGE massive flow of income, like an NBA player or a CEO with no other sources of income. What happens when that dries up? How many flows do you need for multiple flows? Two, six, thirty four, five? Remember, no target no success. You can’t hit a goal that doesn’t exist.

It is said, and I haven’t researched this, that the average millionaire has 7 flows of income. I don’t depend on 7 flows and I wouldn’t suggest you should either, but you can’t just jump from 1 to 7 or more—I just know you can’t depend on 1 and expect to get anywhere with your wealth.

And remember, I’m not just talking about money—wealth to me is a collection of things. It could be money, friends, fans, books written, or the accumulation of information. I want a wealth of information, a wealth of mentors, a wealth of supporters—you get the idea.

Your first flows of income must be symbiotIc.

The dictionary defines symbiotic as, “having an interdependent relationship.” What that means here is that once you have one flow you don’t go make a second flow somewhere else in another company, for another business or with something that isn’t like your first flow.

For me I worked a car salesman. I got paid $1500 every week. I did Step 1: Create Income, but I couldn’t become wealthy making $1500 a week so I had to figure out how to fortify that. I worked commission so I had to learn how to get our product successfully into the hands of someone who wanted it—more sales meant more income. I increased my income from $1500 a week to $18000 and my confidence exploded. I now understood how economies worked and I kept living like I was making $1500 a week. Steps 1, 2 and 3.

So I have to do Step 4: Invest , so I invest in making myself better at sales. I invest in training and personal growth. I wasn’t ready to make big investments in real estate yet, I didn’t know enough. So I get to Step 5: Create Multiple Flows. Here’s where things started to speed up. I had to find a second flow that went with my first flow—sales. So I started helping with financing deals. I started to bring in more leads and take them to the service department and the repair department. Instead of the company paying outside people to bring in leads they started to pay me to bring leads to different departments. A second flow symbiotic to the first. I didn’t go anywhere and it helped my first flow grow.

Keep your multiple flows close to you. You must be able to control the space around you before you can go wide.

This company I started bringing leads to sold insurances as well, so I asked if I could bring them leads for that and what happened? —another flow of income. I looked into referrals and made buddies with the other people I competed with— I couldn’t sell every customer so I gave them to my competition for a referral fee. That way I could make money on any lead, sold, unsold, another department, anywhere that lead went I got a flow.

Then I started buying our cars and selling it from home. Now I’m 19 with my base income, my commission, my service leads, financing, referrals, buying and reselling the cars—one place and now I have around 7 flows of income. All from different sources but all from the same location. I didn’t have to go anywhere else for all this. I’m up to like 12 hours a day. I didn’t get a second job, a third or fourth job. Seven flows with only one job.

What’s the point of all this? Control the environment around you before you go out and try to conquer the world. You need to be able to dominate your space before you can go out. You need to fortify that first flow and build your other flows next to it. You need symbiotic, parallel income flows.

Almost everybody has two or three flows to start with. Look at every flow you have.

Most people incorrectly think they only have one flow of income—their job. Do you have a savings account? That pays dividends, no matter how small—that’s a second flow, so make sure to consider them income flows.

You must fully understand what flows of income you have so you can increase them rather than chasing new income flows. What do you do to increase these flows? Well, with that savings account you can’t go ask the bank to pay you more in dividends, so what can you do? You could take that money and lend it out; that would be one way to do it. You have to be creative, but smart. Don’t just throw your money into anything just because it’s exciting. That’s how you go broke. You can start trading or stacking cryptocurrency! but remember! know first what you are doing.

You have to properly identify the flows you have so you can increase them properly. Money goes to the things you put attention on. Put attention on your flows of income so you can increase them.

You have to get into sales.

So now you have a couple flows going, two, three, five, seven... as long as they are symbiotic you are going in the right direction. If you’re at 40 income flows we’ll talk about that later. So now what can you do to increase those flows?

Sales. We’re talking about the increase of revenue.

Mark Cuban says you must learn sales if you’re going to be in business. When we’re talking about how Warren Buffett evaluates a company based on revenue and how the company manages revenue—again we’re talking about sales.

• Communication

• Motivation

• Branding

• Marketing

• Going Wide

This is not the stage where you worry about making products better.

We are talking about your value as an individual here. Your ability to create revenue in the marketplace, your value at your job—it’s based on your ability to create revenue at your post: manager, executive, company owner, investment shareholder... your value in the company is to bring in revenue.

Even if you’re a philanthropist or running a charity, say you run the Red Cross, your value is not to organize the Red Cross or make the Red Cross do more. Your value is to bring in more revenue so the Red Cross can do more great things— focus on the revenue. Commit first, figure the rest out later.

How do you bring in more money every waking moment while at work or with your family? Your wealth creation should be flowing with your spouse, your kids, your company, your department—you want everyone around you thinking about increasing revenue.

Revenue can solve all product problems. Put all your attention on it.

Who’s got the money to fund my projects? Who can help me hit my targets? What are my targets? How many units do I have to sell to hit that target? You must keep attention on this. What’s the target for my department with this product or service?

Who do I have to make contact with on each of these flows? Evaluate each flow constantly, looking at the flows and how they can go wider and wider. I’m telling you what I was doing when I was 19. I didn’t own the company I worked at. I’ve increased my flows. I’ve started to invest a little in my environment that I talked about earlier. I’m just trying to make those bigger. Those investments are flows and I want to increase those flows.

Now what am I doing every month, every week, every day to make those bigger and better? I’m looking at my targets. Every day I write my targets down—when I wake up and again before I go to sleep. Over 700 times a year my attention is directly on my goals. I’m looking at my checking account, I’m looking at my savings account, I’m looking at my sacred accounts, I’m looking at my customers, I’m looking at my time, I’m looking at my appointments... I’m keeping my attention on everything that is a flow. All of it.

Don’t crap out. This is different than saving in step 3.

Saving here is very different than earlier in the formula. You might have gone from $0 in the bank to $60,000. I remember the first time I saved my first $60k, I was like, “Oh my gosh! I have sixty thousand dollars!” A salesperson who worked with me also saved $60k, but he went out and blew his money and had to start over again from zero. If you want to stop hitting zero and starting over you must do what I did. All I did with my money was invest in myself, only myself.

Early on there is no money to make big investments for surges. Early on your focus is to create income and increase those flows. Keep putting that money away. Sooner or later you are going to look up and that $60k is going to be $300k, $400k or even $500k if you stay disciplined and focus on CREATING money, not spending it.

Don’t make big plays yet. You aren’t ready for that yet, even if you’ve saved $500k.

You want to build lifeboats so when the ship goes down you are ready.

Having one-million dollars in the bank does not make you stress free. It puts you exactly into anxiety. You know the value of money and have some put away but can lose it all with one bad investment. Don’t get ahead of your wealth and begin bragging—don’t become a pretender spender. That fancy car didn’t get you all that money in the bank, the watch didn’t get you a flow of income... stick with what is working—saving money in sacred accounts.

Maybe your lifeboat is a savings account that you have unlimited check writing ability on, but the reality is you don’t want to write checks out of this account. You could use a checking account. I like to use Money Market accounts with a limitation of one or two checks a month. These accounts are sacred and shouldn’t be touched until you have $500,000 or more in them. Don’t even think about them as available until they are over $1 million. Keep your attention on saving and putting those flows into these sacred accounts. Only make investments in yourself—because it gives you a positive return on the investment that you can control.

Build your lifeboats and have multiple lifeboats.

It doesn’t take money to make money, it takes courage.

I know people with a lot of money who do not have the courage to use the money. I had over a million dollars in my sacred accounts before I put some of it at risk. My living standards hadn’t changed from when I was at $0 and now I’m at $1,000,000. It was tough to not go out and spend money but every time I looked at my account going bigger I realized the sacrifice was worth it—paying the price today so I can pay any price tomorrow.

Right here you are planning to reach out past that enviroment—and it’s scary. I want everything I put my money in so close I can touch it; I want everything parallel and under control because I’ve never been a lucky guy. I’ve never had a tremendous amount of courage for taking risk and it always feels like I have to work harder than most people. If you can relate, then you understand why at this point in the Wealth Creation Formula you must save and wait for the big play.

Be extremely conservative. I didn’t make my first big investment until I had over $1,000,000 in my sacred accounts.

This is where you get rich folks. This is where you make the big play.

Like I mentioned earlier you need to expand money, not just expend it. By definition an investment is, “the action or process of investing money for profit or material result.” You need to take your money and put it into a scheme. A scheme is, “a large-scale systematic plan or arrangement for attaining some particular object or putting a particular idea into effect.” It’s actually something very, very positive—but how many of you thought it was something negative?

So here you are making the big play, you’re investing in a scheme. Will it be a business, will it be real estate, will it be the stock market? I don’t like the stock market personally but crypto market can be lucrative but be careful. There’s a lot to know about investments and this space can be confusing. If it’s something I can wrap my head around and it’s simple I’m good. If I cannot understand it I will not touch it. Keep that in mind.

There are three types of investments to look at: Big Bang, Dividend, or Both.

When I look at an investment I’m looking at three possibilities. Big Bang, I’m just keeping the language simple here—remember, if I don’t understand it I don’t invest in it—and the big bang is an explosion on the return. The second one is a Dividend or cash flow. For example, I made an investment in real estate of $10,000 and I make $100 a month or $1,200 a year on that—the dividend is $1,200 a year.

I look for the third group: Both—something that is explosive and gives a dividend.

I like both. I like the flow of dividends because I’m an insecure financial person and I like to see a little drip, a little nibble on my fishing line which means a little income every month with the chance that I catch a big one.

Criteria for an investment:
1. It has to be a sure thing.

2. I need to know what I’m doing. If I can’t explain it to someone else, I don’t get it.

3. Make sure it can never be destroyed.

"Rule No.1: Never lose money. Rule No.2: Never forget rule No.1." - Warren Buffett

Your investment must be a sure thing, you have to know what you’re doing and it can’t be able to be disrupted.

Coca-Cola was founded in 1892. Warren Buffett owns 6.2% of that multi-billion dollar company. For him it’s a sure thing, Coca-Cola isn’t going away. He knows what he’s doing when he invests in it. When he looks around he sees people drinking the soda, their billboards and commercials are everywhere. When the economy turns down people still consume Coca-Cola products—it’s a sure thing and it can’t be disrupted.

He’s also got money in Walmart, Wells Fargo, Kraft, Heinz, Apple, Procter & Gamble, American Express. You know all of these company names because they are a part of every day life. And don’t look at this like diversifying—Warren Buffett is to a point of wealth where he can expand and create multiple flows like this. You should be looking for ONE sure thing.

Each investment you make must be like this. You must know it’s a sure thing and if it isn’t don’t play around and gamble with it—if you want to gamble go to a casino and don’t expect to make money. Your investments need to pay you in dividends so they become new drips, new flows of income that you can add into your wealth.

Don’t forget the first flows. Here you should be increasing all your flows and increasing the number of flows.

This step is for those who want to get to ridiculous amounts of wealth. This is where the biggest players play. They’re never satisfied and they’re always trying to create more flows. Some of you might think they are greedy, but these are the people giving out all the money. These are the people building hospitals and bridges and leaving their legacies for generations after they die.

You might not end up putting your name on a hospital but this kind of wealth is available to you if you want it. Now more than any time in history, you can grow to this place of wealth. You don’t need to be born into money or invent the next best thing.

Wealth Creation Formula brings on this kind of wealth to you. I don’t want to be destroyed at the end of my life. I want my legacy to live on and your legacy to live on—and that legacy needs to be funded. You won’t have a legacy for being broke or making $1,000,000. You must get SUPER wealthy to leave a legacy.

Keep your main thing your main thing.

I had five little drips going, plus my savings accounts so I decided to quit my job to go into business for myself. I went from all those drips down to one, my savings account—plus now I have to actually pay people who work for me, for the office space, the office equipment and on and on. This is why most people move backwards when they are catching speed—they forget their main thing.

Remember, 80% of millionaires work for someone else—that means only 20% of them went out and made it on their own to become millionaires. Think back about what I said on knowing it’s a sure thing. Which is better, 80% or 20%?

You have to grow and expand as you get around this nonagon of steps.

This isn’t Step 5 or Step 6. At this point you aren’t at $0 or $10k in your sacred accounts. This is the big Step 9 where you are looking for surges like Step 8.

How do you build wealth at this level? You build your brand. How do you build your wealth at this level? You build value. You must be doing all this with a purpose. You aren’t going to get super wealthy without a purpose—and if you’re just doing it to get rich you’ve already lost interest a few steps ago. Once you can go on vacation, stop worrying about car payments and take care of your kids you’ll lose interest in going wider, making even bigger plays and becoming super wealthy—unless you have a bigger purpose.