“Rome wasn’t built in a day,” the old saying goes. Well, neither will your 5 Day Weekend be built in a day.
When you’re building anything, there’s a logical process to follow. It is important to see the big picture and how each part interacts with the whole. Understanding the sequential steps in the process is essential, so you don’t build something prematurely that later has to be fixed.
The Wealth Matrix is the process for shifting your income sources from active to passive, with the goal of building your 5 Day Weekend. It consists of the following five phases:
The Five Phases of the Wealth Matrix
The Foundation phase is putting your house in order. It’s looking at your existing resources and maximizing their efficiency, before focusing on developing more resources. You reclaim dollars that are currently being drained from your finances using our cash flow recovery method. This enables you to then utilize those freed-up funds for investing.
2. Entrepreneurial Income
The focus on this phase is to increase your income as much as possible so you have cash with which to invest. Entrepreneurial income is income you earn outside of a job. Ideally, it is generated even if you’re not physically present. However, it may be more active income in your early stages.
3. Growth Investing
In the growth phase you start using the cash you’ve recovered from your existing resources and the new income you’ve generated to invest in more passive income streams that are conservative and safe. Save to invest, don’t save to save. The only reason to save money is to invest it.
4. Momentum Investing
Once your new investments start generating cash flow, you have more cash to play with. You can now invest in projects with potentially higher returns, but also with higher risk. Loop and recycle any potential profits and reinvest back in Growth investments and assets.
With enough passive income streams in place, your investments can now fund and service your lifestyle and freedom.
In my next post, I explore these phases in a little more detail. I’d love to hear from you about this process, however: what do you think about these phases of creating wealth? Are they possible for you? Thank you for sharing your thoughts.
Secure your copy of the “5 Day Weekend” book. 5 Day Weekend: Freedom to Make Your Life and Work Rich with Purpose [Nik Halik & Garrett Gunderson]