What is The Wealth Triangle?
There are only 24 hours in every day, for every person rich or poor. The definition of ‘wealth‘ varies from person to person because everyone chooses to spend their time in different ways.
Some people would like to travel the world if they could, while some would simply like to stay home with their families… if they could.
But there is only so much time in the day. And most people must sell some of that time to someone else in order to pay for life’s necessities and also luxuries of their choice.
This brings us to the Wealth Triangle.
Wealth is merely a triangle with 3 important pillars: Time + Knowledge + Money = Wealth
Once you have achieved two of these pillars, you can use the two you have to obtain the third. When you have all three, you are wealthy.
Time + Knowledge= Money
Lets say you are fresh out of college and have no money. But you are young meaning you have a lot of time left. Use this time to increase your knowledge. Read BOOKS about money, finance and investing. Attend seminars and lectures. Find something you are passionate about and get a job in that industry. Use the money you make to buy assets that produce income and grow over time. By using the time you have, spend your days increasing your knowledge and the money will come. Time + Knowledge + Money = Wealth
Knowledge + Money= Time
Lets say you do not have as much time, but you have years of experience in an industry and hopefully savings. You should still be reading books, attending seminars and continuing your financial education. With this wealth of knowledge and money, you can now purchase time. By knowing how money really works, and how to put it to work for you so that you do not have to work, you now have the time you need to do as you please.
Time + Money= Knowledge
Who has time and money but no knowledge? Think lottery winners, or those who have recently received a large inheritance. Many people do not know how money works, or even how to keep money. Most lottery winners end up not only broke within 7 years, but also in more debt than they started in. This is not a coincidence. We are only taught how to consume, not how to invest. (See What Would You Do With A Million Dollars?)
The First Step Is Getting Started:
While everyone loves money (especially me!) the most important of these pillars is time and Knowledge. There is only so much time in the day, month years and in our lives. You can diet and exercise to try and buy more time… but that seems hard.
With knowledge, anything is possible. Knowing the right people, the right terminology, the right time, the right investment, the right price and you can achieve wealth. But like dieting and exercising it seems hard.
True Wealth is achievable by anyone. You must first define what it means to you and get started. Its much better than selling the most precious asset that you have, time. Besides, you are running out of it.