Building wealth one step at a time.
Explore the step-by-step process to climb the wealth ladder with our academy’s guidance.
Why is it that some people achieve significant wealth, while others die broke?
It has nothing to do with working hard or working smart, nor does it depend on where you are born or which university you attend. At the end of the day, it comes down to one simple challenge: most people don’t understand that wealth building is a journey of growth. Advancing through different levels of wealth requires a complete mindset shift and a fundamentally different way of understanding money.
Wealth Mentor developed the Wealth Ladder as an educational model to guide individuals through the process of wealth building. By breaking down the journey into 3 different levels with manageable steps at each level, it provides a clear framework for financial progression. Each step on the ladder represents a critical milestone in the journey, ensuring that you can build wealth systematically and effectively.
In this blog, we will delve into the Wealth Ladder model, exploring each level and the steps within them. By the end of this guide, you will have a solid understanding of how to use the Wealth Ladder to achieve your financial goals and build a secure future.
Understanding the Three Levels of the Wealth Ladder
The Wealth Ladder is composed of three distinct levels, each designed to guide you through the journey of financial growth. These levels are strategically structured to help you transition from being a saver to an investor and ultimately to an entrepreneur. Each level consists of nine steps, grouped into sets of three, much like the blocks in a game of Jenga. Just as in Jenga, if you try to build too high without a strong foundation, your financial tower can collapse.
LEVEL 01
Personal Finance – Becoming a Saver
Establish a strong foundation in personal finance by cultivating habits and strategies that turn you into a disciplined saver.
- Connect – You need to understand your personal strengths and weaknesses, connect with your future vision and goals, and understand who you are at your core. This self-awareness allows you to align yourself with others who complement and support your financial journey.
- Channel – Once you have connected to other people’s resources, it’s time to channel some of that flow towards you. Know how to be of service to others in a way that pays you. This ensures you have consistent cashflow, the right banking structures, and that your personal money flows seamlessly to pay your bills.
- Compound – Once you have money coming your way, it’s about ensuring you are saving and compounding your returns. This includes investing in a superannuation fund and constantly upskilling to make yourself more valuable to an employer, enabling you to be promoted and increase your income.
Common Challenges: Many individuals burn out at Level 1 because they never feel like they are getting ahead. Although some quickly master the basics—setting up a savings account and contributing to a superannuation fund—they often spend the next 40 years on a hamster wheel.
They continuously upskill, chase promotions, and take on more responsibility, which can lead to burnout. The key to avoiding this pitfall is recognizing that once Level 1 is mastered, a completely different mindset is required to progress to Level 2.
Transition to Level 2:
While Level 1 focuses on the value you provide as an employee, Level 2 is about becoming a proficient money manager. This involves understanding investment markets, predicting long-term outcomes, and managing money effectively to give you time freedom and passive income.
LEVEL 02
Investing – Becoming an Investor
Shift the focus from saving money, to having your money earn money for you
- Identify – This step is about identifying the resources you have, the outcomes you are looking for, and your risk tolerance. By understanding these factors, you can narrow down your investment choices and decide on a strategy that aligns with your goals and risk profile.
- Inform – This step involves gaining the information you need to execute your investment strategy. This includes finding a mentor to learn from, understanding how the investment process works, and testing your strategy in the real market to gain practical experience..
- Implement – This step is about actually putting your strategy into action. Take the knowledge you’ve acquired and build it into a legitimate investment plan. Track and measure your progress, and take profits out of your investments to pay yourself, ensuring you benefit from your financial growth.
Common Challenges: Level 2 has its own limitations, such as challenges with bank serviceability for further property purchases and generating enough passive income to cover big expenses.While passive income from investments can allow you to stop working, it may also then trap you within the confines of your income, not allowing you to grow.
Transition to Level 3:
Moving to Level 3 involves tuning into the market place and then creating lump sum cash revenue through developing and marketing products. This level offers the freedom to leverage your time and knowledge, making more money in less time than you could as an employee or investor.
LEVEL 03
Business – Becoming an Entrepreneur
Learn how to make money by creating value within the market place.
- Dream – This step is about envisioning the impact, size, and problem your business will address. It’s about dreaming up a business that not only solves significant problems but also makes a meaningful impact on the world. The goal is to create a business that doesn’t feel like work because it aligns with your passions and values.
- Design – This step involves designing the business to work for you, not the other way around. Your business model and products should be designed for maximum leverage. Knowing the desired outcome from the business from the start allows you to design a business with no bottlenecks, enabling it to scale to the size you desire right from the beginning.
- Deliver: This step is about executing your business plan. It involves setting a plan for building and growing your business each quarter and then keeping track of key measurables. Consistent execution and monitoring ensure that your business stays on track and continues to grow as planned.
Common Challenges: If not designed correctly, or if steps are skipped, entrepreneurs can find themselves working harder at Level 3 and earning less than they did at Level 1. Proper planning and execution are essential to ensure business success and financial growth.
Key Takeaway: Attempting to skip steps or build higher levels without securing the foundational ones can result in financial instability. However by understanding and following the three levels of the Wealth Ladder, you can systematically build a robust financial future, step by step.
Join the Wealth Mentor Academy
Ready to start climbing the Wealth Ladder and secure your financial future? Join the Wealth Mentor Academy today!
In the Wealth Mentor Academy, you’ll find comprehensive trainings tailored to each step of the Wealth Ladder, providing you with the knowledge and tools needed to progress from personal finance mastery to successful investing and entrepreneurship. You’ll also become part of a vibrant community of like-minded individuals who are on a similar wealth-building journey. Wealth creation is not a destination; it’s an ongoing journey.
With the Wealth Mentor Academy, you can climb the Wealth Ladder one step at a time, ensuring you have the support and resources to achieve your financial goals.
Take the first step towards financial independence. Join the Wealth Mentor Academy now and start your journey to building and preserving wealth for generations to come.
