The Trinity Of Wealth Formula explained
Trinity of Wealth
The Trinity of Wealth formula combines 3 important elements. Hence why it’s called the ‘Trinity’.
Invest For Short-Term Cash-Flow
Invest For Medium-Term Growth
2 to 5 years
Invest For Long-Term
7 to 10 years
Cash-Flow Is Key To Being Able to Build
And Grow Your Asset Base
Cash-flow can be created through your existing:
- Or Trading
We use the profits from this cash-flow to invest into the middle bucket (medium term). Medium term are assets we invest in with the expectation that it will take at least 2 to 5 years to achieve a profit. In other words, we don’t expect to create profits from these kinds of investments for at least that amount of time.
To expect a result sooner than that, would be going against the philosophy around the strategy. We buy these assets with the discipline and deliberate intention of holding those investments for at least 2 to 5 years.
The third part of the Trinity of Wealth formula is to invest for long-term wealth. Long term means 7 to 10 years. This is the asset class that ultimately determines our wealth.
Part of our approach is to create multiple streams of income within the cash-flow bucket.
This way your income grows substantially as well as provides you with safe diversification where you are no longer dependent on just one income source.
Picture The Trinity of Wealth Formula As Consisting Of 3 Buckets
Bucket number 1 is the cash-flow bucket.
Bucket number 2 is the growth bucket.
Bucket number 3 is the wealth creation bucket.
Following this method, anyone, regardless of your current financial position could obtain financial independence, possibly financial freedom, within 7 to 10 years!
The ultimate objective is that in time, the bulk of your assets will exist within the long-term (Wealth) bucket. Those assets will themselves also be generating cash-flow in a ‘passive’ manner. This iliminates the need for you to create ‘active’ income. Ultimately once this passive income grows, your first achievement is when it covers all of your current living expenses. At which point you have achieved ‘financial independence’. As it continues to grow to reward you with many more privileges and experiences, you will have reached ‘financial freedom’.