Wealth Pyramid: The Clearest Path To Financial Freedom
Do you know the wealth pyramid? In this episode of the Rise Up and Live Free podcast, Brad, Ryan, and Jimmy discuss why you can’t become financially free without a plan. Success is born from a great strategy. We like to call this strategy a framework.
Many people rely on becoming accidentally wealthy. They think they have a plan, but when it comes down to it, they aren’t able to systematically describe their path to wealth. At CashFlow Tactics, we find fault with the idea that the best plans are a wait and see approach. We want to be active and hands-on with our mission to financial freedom.
Whether you have enough money or not is not a signifier of freedom. A framework you understand is what leads to your freedom. The core of what we do is financial empowerment. That is the essence of this entire episode. When you have the principles, the tactics become easy. Using the “Wealth Pyramid” framework, you will have the clearest path to financial freedom in ten years or less.
What Is Financial Empowerment
If you’re waiting for someone to tell you what to do with your money, then you’re not really financially empowered. We’ve all dealt with moments of confusion and misdirection regarding our financial situation. When Ryan first was looking to get out of the corporate world, he was desperate to find answers. He was willing to try anything that might work. For a while, he dabbled in different avenues such as cryptocurrency and trading, and while he found some success, he was unable to replicate his results.
Ryan didn’t know the answers to why he was doing well. He couldn’t rely on these results because he couldn’t explain them. It left him feeling just as powerless and aimless as he did in the corporate world.
It wasn’t until Brad, Ryan, and Jimmy set down and developed their framework that they could truly breathe a sigh of relief. Their relief came because they finally had a concrete method and understanding of a strategy that would move them forward. They had a formula for their success.
Now when their clients come back to them after implementing the CashFlow Tactic framework and realize that it’s successful, they can go on and do what they want with their free time and with their life. That is what being empowered means. It is the freedom to do what you choose.
“When you have the principles of wealth the tactics become easy”- Ryan D. Lee
Wealth Building Pyramid
Money is just a tool. It isn’t good or bad. But it is the thing you are trading your time for. This indicates that it’s a pretty valuable resource. There is a difference between making money and becoming financially free.
The idea of the foundation of the pyramid is your ability to create value and exchange that value in the world transacted by dollars. The base of the pyramid, which is essentially the investment you make in yourself, is comprised of three subsets. It is your mindset, your skillsets, and your network. If the first question you have is what you should do instead of how you should do it, you’re not coming from a place of empowerment.
“Being empowered doesn’t mean knowing how to do everything but rather what needs to be done.”- Bradley Gibb
We use the order of a pyramid because we are committed to focusing. You can’t move on to the next step before completing the one prior to it. We are constructing something, not balancing or allocating it. After building up your foundation, the next step is protection. Protection is real wealth and abundance. It is not how much money you’ve made but instead how much you keep.
Three Areas of Protection
Internal risk: Internally if something happens to you and your ability to produce. We do this through insurance.
External risk: There are external economic effects that could hinder the speed of your game plan. In this scenario, time is needed. Liquidity gives us that time.
Hedge: If everything falls apart, do I have enough to reset? It doesn’t make you money, but it allows you to move forward.
The next rung up the pyramid is knowing what to do next. When investment opportunities come across our table, we must make sure they pass the Core Four and Four Pillars, otherwise known as the Financial Freedom Formula.
If it doesn’t pass the Core Four and Four Pillars, then it becomes the next layer of the pyramid, which means it has two-three pillars (i.e., private money loans). And finally, the top layer incorporates one of the pillars (i.e., 401k, cryptocurrency).
Empowerment Comes After the Wealth Pyramid
Once you’ve gotten each level through the three levels of the pyramid, you begin building out. You have the framework you need to succeed. Now your job is to expand and implement what you’ve learned.
Your pyramid becomes more robust, the more you work on it. As you encounter new situations and start leveling up, you’ll be presented with more opportunities to refine and exercise the muscle of your pyramid.
If you want to follow a principle-based approach to financial freedom, then go ahead and take our FREE 5-day Cashflow Tactics Challenge. We literally show you how to use the wealth pyramid. See you there!