How many times did you ever hear someone say being wealthy is nothing more than luck and it’s impossible for the average Joe to be a millionaire? Sure, luck plays a role. But if you believe that it’s the only factor, then you’ll never be wealthy because of this one simple reason. You’ll never try with 100% effort. Look, I get it’s draining. It’s discouraging to try day in and day out and not make visible financial progress. And if you’re in the younger generation, this probably hits you even harder.
Our generation is by far one of the most economically traumatized at such a young age. We’ve already witnessed the Lehman Brothers’ bankruptcy causes, rising wealth inequality, and unprecedented global uncertainty. Our view of finances is pessimistically skewed, and for many of us, it feels like only the lucky few can achieve this wealth reality.
But I am telling you this is not true at all. Yes, although there are many people out there who are born with silver spoons, and on some days, it does seem like being born into it is the only way to build wealth. However, a study by wealth X found that 68% of those with a net worth of $30 million or more actually made it themselves and a second study by Fidelity found that 88% of all millionaires today are self-made.
The Secret Truth to Becoming Wealthy
The truth is becoming wealthy takes time, discipline, and wisdom and people give up way too early because they buy into this idea that they’re just not lucky enough. It’s not simple, but it’s doable. You can accumulate wealth, you can be financially free, you can retire early, you can do all this, but you do need to learn and apply these three specific sets of skills from Navall Ravikant, who’s a famous millionaire entrepreneur and investor. And if you’re here hoping for a get-rich-quick shortcut, sorry this is not one of those.
You’ve Been Misled your Entire Life
First, we need to relearn the definition of money and wealth because you’ve been wanting to think about it the wrong way your entire life. Money is fixed and is simply a form of a commodity. Money is just an arbitrary number that we exchange for goods and services. Wealth, on the other hand, is something that works on itself without you needing to actively do anything.
It could be a blog, software, a book you wrote, or a course you created, true wealth isn’t about status. It’s about financial freedom, being able to be free from doing something that you don’t want to do. It’s not about buying the loudest Lamborghini flashes bag or buying the most expensive Rolex that you’ll only use to make sure that you’re not late for your meeting with your boss.
Wealth is about having some peace of mind. It’s important to note that the average millionaire only has an average salary of $77,916. This shows that literally, anyone can be a millionaire even with a low salary.
Most Important Information you Need
Your talents, your knowledge, which coincidentally is the first key skill that you need on your path to financial freedom. Specific knowledge is not just any type of knowledge. It’s the type of knowledge that can’t be learned in school. And it’s something you can’t just pick it up in a book or be trained for it because it’s what makes you, you. It’s your irreplaceability factor.
We’re led to believe from a young age that if you go to school, study hard for the subject, and work in that field, then you’ll be well on your path to wealth. But that’s complete BS because if you can master a subject that’s taught in school, so can thousands and millions of others. And that’s not an attack on you. It’s an attack on the system. The system mentioned the belief that you’ll be truly wealthy, even if your skills and general knowledge are the exact same as millions of others.
What they don’t tell you is that this system is designed to turn out as many of these workers as possible so that you can be replaced like this. And it’s this replaceability factor that limits your earning potential and wealth. On the other hand, specific knowledge isn’t that specific knowledge is unique. It’s a combination of all your talents, your interests, your experiences, and more.
I bet you know the Answer to These Questions
Let me ask you a question that I already know the answer to. When you hear that Elon Musk, Bill Gates, and Oprah they’re starting a brand new business. What do you think? I bet you will believe it will succeed even before you know anything about the business model. You will attach credibility and trust to it, even if it’s just it’s super boring company.
Why? Because all three of these people have their names, and their brands, they carry a certain level of power, a certain reputation, or accountability that they all worked hard to earn in craft throughout their lifetime.
Although it seems like accountability can only help in this case. It’s actually a double-edged sword because you’ll take credit and responsibility when things go well, but also, when things go poorly, no matter what project or thing you’re working on.
Show your commitment to it. Do the best you can and society will reward you don’t do it half-heartedly, be competent yourself and commit to it. Otherwise, someone else will easily outperform you and you’ll fail.
But here’s where it gets really important. Even if you fail. being accountable means that you accept failure, stick your neck out there and you take it don’t hide behind something, and pretend it didn’t happen. Thomas Edison once said: “Failure is a part of life and can be used to mold you into a better you.”
The Secret way to Generate More (Leverage)
One of the first things that you need to realize is that it’s very, very hard to reach financial freedom alone. You only have so many productive hours in a day, which limits the amount of output that you can generate.
But there is a secret way to significantly increase your output. And this secret thing. Even Albert Einstein once said, was the most powerful force in the entire universe. Compounding, specifically compounding your input, and the best way to do this is with leverage. Leverage is essentially an amplification of whatever you’re doing.
Imagine you’re throwing pebbles into a calm body of water. Each pebble that you throw represents your input your effort into whatever you’re doing, and when the pebble hits the water the ripple effect is the output leverages why can transform your pebble into a bolder and 10 exercise of your dribbles.
That’s the power of using leverage. There are four types of leverages that you can latch on to. Personally though, only one of them works for me.
Capital and Labour
The first two leverages are the old traditional ways that most people probably don’t have access to. The first is capital leverage or having access to money, whether it be from an investor or your wealthy family. The second is Labour leverage or having people work for you to achieve your objectives. There’s nothing inherently wrong with these types of leverage, but they’re not accessible to most people.
Code and Media Leverage
On the other hand, the next two are what transformed the traditional way of things and allowed so many more millionaires to be created in the past two decades alone. And that’s code and media leverage, which is creating software and creating content, respectively.
The power of these last few leverages cannot be understated. They allow you to scale your output extremely easily. All you need to do is produce something once and the impact of it can compound over time with zero marginal cost to reproduce it again prior to the internet or YouTube.
If I wanted to share these ideas with people we would need a physical classroom or auditorium that allows maybe 50 to 500 people and I would need to do it every time a new group of people wants to listen. But with the raise of Content Leverage, all I need is an internet connection a microphone in the computer recorder once and hundreds of 1000s of you can watch and listen as many times as you want.
Focus on these 3 Skills
I cannot emphasize enough the importance of learning and applying these three skills. If you’re still early on your financial journey, you need to realize that you’ve already had a head start compared to me. I never knew about these skills when I first started. Yes, I was doing them unintentionally along the way through trial and error meaning I started from scratch.
But now you have already known skills which means that you can proactively seek them out for you and start earlier. There are tonnes of people out there who would try to convince you of one of two things. That getting wealth is pure luck and that you’ll never get it or that you will be wealthy by buying this course.
The truth is nothing worthwhile in life comes easy. It takes effort and time. You have to make sacrifices to make a real impact on your future. You won’t achieve wealth in a few weeks or even a year. but developing these three key skills will help you speed up your journey to financial freedom. So before you think that’s all you need. The three skills are only one component to reaching Well. if you don’t manage your money correctly, you’re gonna lose all of it. and I get it.