3 Stages of Wealth Building (Explained)

let's face it okay the world is full of average people with ordinary lives they commute to work they show up at 9: and they do just enough to avoid getting fired but there comes a time when you have to decide whether you'll join the crowd or make your life extraordinary that time is right now and for those of you who choose to Rise Above the Rest good if you want to build a life of extreme Financial abundance Take Back Control of your time and travel the world as you please this video is for you my

friend today we're revealing a three-stage master plan anyone can use to build wealth from nothing welcome to alux the place where future billionaires come to get inspired okay so before we start today let's do some myth busting so first of all most quote unquote successful people find a good job and save for retirement as they work their way up the corporate ladder now look okay we're not claiming that's a bad choice or anything it's what most people do because well it's safe but let's face it okay average choices lead to average results and we're not

aiming for average today no the goal is to build wealth so you can live a life that's Out Of Reach for 99% of people so our first myth is that you can build an uncommon Life by following a common path working for someone else it is just not true okay to get ahead of 99% of people you have to work for yourself build your own businesses you need to be an entrepreneur but that comes with its own set of myths first off most people's first business idea is usually something along the lines of Netflix but

for horses that's a bit exaggerated sure but the point is newbie entrepreneurs often think that success means pioneering some groundbreaking new idea like the next to Google something that'll change the world forever but this is a big mistake there's a time in place for breakthroughs sure but if you're starting out the first thing you need is a solid foundation and we'll show you how to build that in stage one once you've got that foundation in place there's another myth we need to tackle that every business is meant to make money now this is a bit

counterintuitive but the businesses where you make the most money are often the least profitable sometimes it doesn't matter how much money your business makes as long as the company is valuable and we'll go into more detail on this in stage two and finally let's destroy the single most pervasive myth about wealth there is open up any personal finance book and the most common advice you'll find in there is to save a little bit of money every month invest it and watch it magically turn into millions this advice isn't wrong but it promotes the myth that

anyone can build wealth passively investing and unfortunately that is not true listen if if you invest $100 in the stock market every month and get a 10% annual return it's going to take around 38 years for that to become $1 million and if you take it out well it stops growing all together on the other hand if you already have $10 million invested you make $1 million every year and that's actual money you can use the fact of the matter is Investments don't make poor people Rich they make rich people wealthy but that begs the

question how do you get rich in the first place how do you actually build wealth from nothing well stick with me here and we're going to go through a master plan with clear steps that will help you to navigate the three stages of wealth now of course there's a million and one ways to build wealth and this is just one of them but anyone can use this to go from broke to rich to wealthy if you've got enough grit and determination because sorry okay we will not indoctrinate you into some kind of get-rich quick scheme

here ever this is a system you can use to build a life that 99% of people will never get to experience but to do that you have to be willing to do the work that 99% of people won't think of this as your 10-year plan after all it only takes a decade or so to become an overnight success but I promise anyone can do it all right so in the first part of this master plan stage one you want to lay a solid foundation for the rest of your life which comes down to three key

things cash flow skills and connections now I say Foundation but think about it like this if you had a nice steady flow of money coming into your bank account every single month if you had skills like sales marketing and management and if you had a strong network of people just like you what kind of position you think you wouldd be in that already opens you up to a fantastic lifestyle and that's why this Foundation is so important now with a regular job or even with most types of businesses achieving all of this can take multiple

decades but there's a clever shortcut to do it much faster and we talked about it it isn't to start Airbnb for hamsters or the next Amazon the fastest most profitable way to build cash flow skills and connections and your first step in this journey is something much simpler starting an online service-based business yeah okay we're being real here basically you're going to sell a valuable service that helps other businesses for example you could help to design websites edit videos or build apps but ultimately what you choose depends on the unique way that you can help

your customers whatever you end up doing though it's immediately going to unlock a new level of earning potential poal for you and here's why cash flow so to create cash flow when you're starting out on your journey you need a business that's quick to start profitable and scalable with most online services all you really need is a laptop and a dream so you don't have to save for years or take out risky loans it's just you your skills and your willingness to learn and remember you're not selling M&M's here your service is supposed to help

other businesses make or save money so depending on the results you can get you can charge hundreds or even thousands of dollars for every project you take on this means you don't need a ton of customers to make a profit and your business is relatively simple to manage however here's where you come across one of the many pitfalls on this journey because well it's easy to fall into the Trap of trading your time for money the worst mistake you could make here is becoming a glorified freelancer where you just have another job except you work

harder and for longer hours the good news is once You' got a steady group of clients you can hire people to help you out after all every business is just people with skills organized by a system and if you can find people who are as good or better at those skills then great your long-term objective in this whole stage is to fully automate your business so everything from finding and getting customers to delivering the service happens with or without you at this point your income is no longer dependent on your time and this is probably

the single greatest wealth building cheat code because now something truly incredible happens when you reach this situation every time you sit down to work it's not just to earn an extra 100 bucks this month no instead you're working to increase your monthly cash flow potential so your effort doesn't just pay off once it pays off forever and this kind of Leverage is the key to scaling your wealth all right so that covers the cash flow part of your foundation but what about skills and connections well that's where the real beauty of this master plan shines

in the process of building your service business apart from making a ton of money you'll learn 90% of the skills you need for your entire journey to wealth think about it first you need a way to let people know about your service so you learn about marketing here then you need to convince people to give you money so you learn sales and negotiation you need to keep track of your finances so you learn accounting and of course you need people's help along the way so you learn leadership persuasion management and that's just the tip of

the iceberg all of these crucial life skills that help you to navigate all sorts of challenges and the great thing is you're putting them into practice every day that's what makes them stick and then we're on to connections because probably the coolest part of building building a service business is all the people you get to meet along the way when you're building a team you'll get to meet loads of talented people and being the guy who knows the guy is a great position to be in again remember you're not selling M&M's you're providing valuable services

to other business owners so your network will expand pretty quickly and the connections you make will be invaluable your contacts might introduce you to other business owners refer you to new clients or even become investors when you move on to bigger Ventures but we'll talk about that later on whatever the case when you're building connections your reputation is everything you want to be known as someone who genuinely helps people and gives them real value and providing a service is one of the best ways to do that all right so there is your foundation stage one

of three of this master plan in stages two and three you're going to catapult your wealth to the next level and since you're here it means you are serious about implementing the steps that we outlined in stage one it's a crucial part of the master plan but you don't have to go through it alone that's why we built the alux app where we've collected insights from hundreds of successful entrepreneurs and packaged them up to help you level up your business skills as you make progress the app lets you track and optimize your path so you're

always on track toward achieving your financial goals and you can also track your health relationships emotional wellness and intellect hundreds of thousands of entrepreneurs and CEOs have made the Delux app a non-negotiable part of their daily routine because they're seeing it make an actual difference in the pursuit of their goals once you're inside we have an expert course specifically designed to help you build run and grow a oneperson service business from the ground up so it's perfect if you're just getting started and you're serious about putting all this secret sauce into action if there's one

thing you'll be grateful you did early on it's investing in your education and since you're here you can scan the QR code on screen to get 25% off your yearly plan the rest of this video will show you everything that's possible once you get the ball rolling so from now on if you find yourself thinking that could be me well you know where to go all right now it's time to talk about stage two exits and IPOs because from now on I'm assuming you've gone from nothing to owning a highly profitable cash flowing business that

lets you work from anywhere with Wi-Fi and grow your skills and your network but are you rich yet well not exactly listen Okay at this point if your service business runs without you you've got a Golden Goose that's already a remarkable achievement but let's be honest okay this was only your first step stage two of your master plan is where your life really levels up and this time you are selling M&M's but not M&M's you know you got to do your own thing what I mean is that you're going to go from building a business

that helps a handful of people to one that helps as many as possible just think of the difference between a taxi driver and a company like uber fundamentally they both have the same mission to provide transportation but the taxi driver can only do that for a few dozen people a day and meanwhile Uber's mission statement is literally to provide transportation as reliable as running water everywhere for everyone now here's the thing okay the taxi driver's income is directly tied to the amount of time spend driving people around and generally every ride is a net profit

for them however even though Uber Services millions of people every day the company didn't make a single scent in profit until 2023 14 years after it was founded but here's the crazy part by that point Uber was already worth over $120 billion but how they didn't make any money well you see Uber's goal at least in the first 14 years wasn't to maximize their cash flow it was to maximize their Enterprise Value and that's what you're going to be doing here in stage two because it's how you become well and truly Rich so Enterprise Value

is the total value of your business in the eyes of investors or potential buyers it's the sum of all of its parts like the brand the technology the customer base the systems the team and the potential future profits all rolled up into a big number that represents what someone would be willing to pay for the whole thing but how do you actually build an Enterprise Value business well first you need an idea and one of the best ways to come up with that idea is to Simply turn your service into a product let's give you

a great example okay Melanie Perkins is the CEO of canva a graphic design platform that above everything else is super userfriendly we use it all the time here at alux now Melanie came up with the idea for canva while she was to Tut in graphic design students she had a service business where she taught programs like Photoshop but many other students found it too complicated so she made an alternative that was easier to use today canva is worth around $26 billion and Melanie is Omega Rich so just like Melanie a great way to come up

with an idea for your Enterprise Value business is to just look at the services you provide and find a way to turn it into a product again you can get 25 %c off your yearly plan on the alux app by scanning this QR code because we've got a course specifically designed to help you launch your service business called solopreneur success okay so now you have your idea but for Enterprise Value businesses you need a little bit more than a laptop and a dream in most cases you're going to need money to start out but remember

all of those connections you made in stage one well now you can take them on as investors and you can also fund the business with the profits from stage one now the only thing left is to build the company in a way that optimizes for Enterprise Value and to do that you're going to put all of your focus on getting these five things right so first and most importantly you're going to want to reach as many customers as humanly possible and this goes right into the second point which is that as your company gets bigger

you want to get your costs as low as possible thirdly you're going to want to build a great team of people because the less dependent your business is on any one person especially you the more appealing it is to investors next make sure your company has a strong trusted brand everyone you reach has to know who you are and why you're the best at what you do and lastly you need to show investors that you have a solid strategic Vision a plan for where you're headed not just for today but for the future if your

company has all of these five things it'll be worth millions and millions of dollars and now you've got a decision to to make your first option is to turn this company into a cash flow business by making it as profitable as you can since you're the owner all of the company's profits go right back into your pocket and you'll have a consistently High income and unlock a lifestyle that 99% of people never will but you also have two other choices worth looking at on the one hand you could cash out and sell your business to

a private investor or you could take the company public on the stock market if you go the first route you'll get a pay check with a mesmerizing number of zeros and if you go for the second your net worth Will Skyrocket along with your company's stock the choice is ultimately up to you but whatever the case selling an Enterprise Value business should place you squarely in multi-millionaire territory you can call yourself rich now officially you are finally ready to step into the third and final stage of this master plan where you'll turn your newfound riches

into the generational wealth of stage three by this point you're rich and it's time to get Wealthy by diving into the world of Investments however it's important that you're doing this now you see the most mainstream personal finance advice out there is to save and invest every month even if it's just a little bit compound interest will help you to make it enough to retire and honestly investing is a great habit for anyone to have but compound interest is a different game when you're rich and when you're poor like we said at the start of

this video Investments don't make make poor people Rich they make rich people wealthy if you want to get rich relatively fast by investing you'd have to make extremely risky bets where you stand to lose everything and most likely you will but once you're already rich you can put your money into Super safe Investments and even by earning just a modest 5% return you'll still make millions so how should you invest once you have the capital to do so well first of all there's a hack you can use now that you're rich banks will be salivating

to bring you in as a client so they'll offer you some extremely favorable loans basically you'll have access to cheap debt and you can make a lot of money by taking advantage of that and you know the word debt is kind of incendiary because most people especially poor people tend to get into bad debt instead of good debt but think of it like this bad debt simply just costs you a lot it's like buying a house to live in and paying the mortgage it's not an asset that generates income it's a liability that costs you

money on the other hand good debt allows you to acquire assets that generate income so for example now that you're rich you can take out a lowest loan and buy an apartment complex and rent out the units the property pays for itself and then some obviously you have to be careful because at the end of the day you do eventually have to pay your debts back and if you don't they will crush you but either way at this point you've got more than enough money of your own to make investments that just begs the question

which ones well firstly you want to be invested in various Industries like agriculture construction technology and Healthcare and your Investment Portfolio should include multiple types of assets with varying levels of risk stocks bonds government treasuries cryptocurrencies private Equity Real Estate precious metals and private investment funds are just just some of your options and you want this because if your Investment Portfolio is balanced across different Industries and assets if one sector takes a hit like the dot crash for example you won't lose everything because you had all your eggs in one basket you also want to

apply this same principle of diversification on a global scale if you're the type who values Freedom you want your wealth to be protected against any major Market or political shift so you can't be easily controlled by any single so you're going to want to start investing internationally as well putting your money into high growth countries can be incredibly lucrative and some countries even let you gain citizenship when you invest a certain amount that's a great way to secure an international foothold once you've achieved all of this your money will be out there in the world

working hard to multiply Itself by the end of stage three you won't just be rich now there's nothing stopping you from living a life of endless wealth and boundless Freedom with total control over your time but perhaps most importantly you'll be able to pass your wealth on to your family ensuring your hard work pays off for generations and remember wealth isn't about how much you can spend it's about how much you can grow protect and pass on so keep on building alexer keep thinking longterm and never let go of your dreams this was a three-stage

plan on how to create a life that's Out Of Reach for 99% of people and those of you determined to make this happen in the real world well you can come and join us in the alux app for 25% off your yearly subscription we'll see you on the inside [Music]