1. Making Money- There are two ways. A job, a business-

With a job, the goal is to generate as much income by identifying opportunities that maximize efficiency of your energy, time and skill.

With a business, the goal is to generate as much income by identifying opportunities that maximize efficiency of your energy, time, skill to create a scalable product with the least amount of overhead expense.

The objective here is to make as much money as possible with as little energy, time, and expense as possible.

2. Managing Money - This is done by taking clear inventory of your income and expenses.

The goal in managing money is to have income of 2x your expenses. This is done by increases income AND decreasing expense.

There are two main outcomes in managing money well that will build the foundation for the next two steps of this flywheel. The first is to build a war chest of cash to MOBILIZE into investments and second, to build credit so that you will have access to favorable interest rates to MULTIPLY wealth through using credit.

3. Mobilizing Money- This is done by deploying your war chest into 2 main types of investment opportunities.

The first is MULTIPLIER investments. This is when you make an investment in something you believe has the potential to 10-100x in the next 3-5yrs.

Examples of this is a beaten down stock, cryptocurrencies, or venture capital funds investments. These are generally higher risk, but much higher potential reward. One must be careful to study well and understand the potential risks going into these types of investments and diversify well and only use funds that will not be needed for the life of the investment.

The second is CASHFLOW investments. The primary aim of this type of investment isn't capital gains, it is cashflow. This is a much more conservative use of capital and typically is used once there is a very large "war chest" to generate yield.

These types of investments are bonds, high dividend stocks, REITS, and insurance policies.

Hybrids of these two types of investments exist. Leaning toward cashflow is real estate. Real Estate multiplies on a longer time frame but produces solid monthly cashflow. Some cryptos lean toward MULTIPLIERS. Staking cryptocurrencies can have strong potential to multiply while providing a solid annual staking yield that produces cashflow.

The goal of MOBILIZING MONEY is to structure your money to make more money without any of your time or energy being used.

Once the cashflow from these two investments are greater than 2x your expenses, then you have produced a positive feedback loop that will continue to make you money while you sleep.

The outcome of MOBILIZING MONEY well is to reclaim your time and energy. This allows you to give yourself to the things you are the most passionate about and matter the most.

4. Multiplying money- Once you are making money, managing it well and mobilizing it, you can then identify good opportunities to multiply it using credit.

This is pouring gasoline on a fire and accelerating the process. My rules of using credit to MULTIPLY WEALTH is simple.

Keep the monthly expense of debt below 30% of the cashflow that debt produces.

Don't use more than 50% of your available credit for any lengthy period of time.

Diversify debt into multiple cashflow positive feedback loops so that if anything happens in one investment, it doesn't wipe out all cashflow being used to pay off that debt.

Pay off as much debt as possible in good times. Store up credit and cash during good times to prepare to invest in cheap assets during the bad times.

Don't go into debt during good times.

It will wipe you out, set you back, and keep you from taking advantage of great opportunities during the bad times.