As a Closer, I love to talk about wealth and building wealth for future generations. Today we are going to take a look at the first half of Dan Lok’s wealth triangle. Enjoy!
Your results today are the sum of your thought patterns from the past. So if you are living paycheck to paycheck, the question is, what thought process did you use to achieve the results that you see today? What thought patterns are holding you back from success? Are you up to learning a new way of thinking? If so let me share with you a concept I learned recently.
Dan Lok’s wealth triangle
Dan Lok has shared his method for wealth creation in a short YouTube video online. He explains the three steps to wealth as a triangle. Let me give you the short recap on the triangle and my takeaways in the following article.
Side one: Develop a High Income Skill
Before diving into what a High Income Skill is, let’s first take a look at the standard thought process for making money. When you were a little kid and you wanted some money for something what did you do? You went and got a job. So straight out a high school, you took the first job that you could find, and started working for minimum wage right?
Now, there is nothing wrong with this, you learn some character you learn how to interact with people and life is great. But not if you stay here!
Usually after a short period of time in this position, we realize that if we had more training or more education, we could get a better job, with better hours and better pay.
So the majority of people go to college, get into debt to get a degree to work a better paying job. There is nothing inherently wrong with this either, if you have a good plan. The golden standard of this method of increasing your income are the doctors and lawyers we all hear about. The only problem is that they still have to work hourly are tied to a physical location.
So how is a High Income Skill different? Well, developing a skill is different in that you master something that you can be paid up front for. You spend the same effort that you would on an associate degree in developing a skill, and becoming the leading expert in your field (as the go to person that can get the job done).
This is also different because you are not working per hour, you are working per task. The more efficient you are the better paid you will become.
Some examples of skills are photographers, barbers, closers, marketers, copywriters, or niche social media managers. Typically this is anything you can charge at least a thousand dollars for and finish in one day.
There are always three things that business will pay for in any economy and that is branding, marketing and sales. This is because without a brand, marketing and sales; you don’t have a business.
For an example of a High Income Skill, let’s look at photography. If you are the best photographer in your area in a specific niche and you charge $1000 for a shoot, how many of these shoots do you need to do per week to make a good living?
Another example is a High End Barber, if you develop this skill and are charging 50-100 for a haircut, how many cuts would you need to do per week to make a good living? What is you become the best of the best and offer to go to the customers and now charge what the presidential barber charges $1000 per hair cut. How many cuts do you need now?
The list of possibilities for skills will never run out because all you need to do, is become the leading expert in your field. You’ve got to stick with your skill longer than everyone else. How many people have studied and practiced a specific skill for 10000+ hours? Not many.
How many people have spent more than just one year to understand the whole of medicine or the whole of law but one specific niche within that industry? Once you find that High Income Skill, you get to choose who you work with.
You can then go anywhere in the world with confidence, knowing you can rely on your skills to make money for you.
I hope you have found this first half of the article to be helpful. Look for the second half later this week, where we will cover the remaining two sides of the wealth triangle.