The Wealth Equation
All wealth is built from a basic equation: WEALTH = VALUE x LEVERAGE
Believe it or not, every single wealthy person on this planet has created money flow by creating value, and leveraging it.
Watch Roger Hamilton talk about The Wealth Equation:
Sounds simple... but the challenge is that people appear to have made their wealth in different ways. They have - but only in one of eight different ways. These eight ways are as a result of the way in which these wealthy people naturally create value and leverage it. This is the basis of Wealth Dynamics.
Once you know your wealth profile, you are in a position to better understand how you can best create value and leverage to build your own wealth. This is extremely important, because each profile is like a different game, and therefore has its own set of rules.
Without knowing the game that's natural for you, trying to create wealth is like trying to play soccer, hockey and rugby all on the same field, at the same time, with the same ball and the same coach. The result, whether in sport or wealth creation, is chaos, confusion and frustration.
The Opposites of the Equation - Value and Leverage
VALUE: There are two opposites of how value is created.
This is based on the way that your thinking brain is naturally oriented:
- Some of us have a tendency towards high frequency 'intuitive' thinking. We will create value through innovation. The value is in something new - faster, smaller, bigger, cheaper, better, etc.
- Some of us have a tendency towards low frequency 'sensory' thinking. We will create value through timing. The value is in time - why innovate anything when you know when to buy and when to sell?
Watch Roger Hamilton talk about The 2 Opposites of Value:
LEVERAGE: There are also two opposites with how we leverage.
This is based on our action dynamic - the way we naturally translate our thinking into action:
- Some of us have an internal action dynamic, meaning that we rely primarily on systems and numbers to interpret and act. We leverage value by being able to answer the question "How can this happen without me?", and to leverage we multiply.
- Some of us have an external action dynamic, where we rely more on people and communication to interpret and act. We leverage value by being able to answer the question "How can this only happen with me?", and to leverage we magnify.
Watch Roger Hamilton talk about The 2 Opposites of Leverage:
Your path of least resistance
Not surprisingly, what you do most naturally is also what creates the least stress and the most enjoyment - for you and others. That's the point: if you're doing something that feels like hard work, you're already doing the wrong thing. Once you know your Wealth Dynamics profile, you'll have clarity on your path of least resistance.
When you discover your wealth profile, you'll also receive the rules for the game for that profile, so you:
- gain incredible clarity on where to invest your time,
- understand what steps you need to take next,
- know who you need to learn from,
- know where you need to be,
- gain certainty on what you need to do - and equally important,
- have clarity about what not to waste your time on any longer!