This is the ultimate step by step guide to getting rich!
Hello Aluxers! We’re glad to have you with us here today as we’re finally releasing this ultimate guide to building wealth and getting rich.
This is the exact framework, millionaires and billionaires have used to get rich. After studying hundreds of businesses and business models, thousands of self-made individuals – many whom we’ve analyzed right here on this website, we broke it down to this exact framework.
This guide you’re getting right now, could have easily been sold to you as a $20 book or $399 course and it would have been worth every penny. Yet, because you’ve been a loyal subscriber of our channel and keep coming back for these Sunday videos, we’ve decided to simply give it away for free. Our goal is to give so much value to you guys that you feel like you owe us back.
To be blunt: If you follow this framework, you will get rich. Those of you in our community who have already built wealth for themselves can confirm in the comments that this is more or less the same way you’ve done it.
From billionaires, to small business owners, they all follow this exact path that we’re about to share with you. All we ask in return is to subscribe to our channel if you haven’t already and activate those damn notifications.
We strongly advise you to take notes as we progress through today’s guide.
Before we get into the framework, there are some things you should know. Do not skip these! They are incredibly important and you will fail if you don’t take them into account.
We are not all created equal!
We live in different countries, with different infrastructures and you’re not all beginning this race at the same start line. YET, this game plan works for everyone. Your environment and current situation can accelerate or have things move a bit slower, but the result is the same if you follow the game plan.
Here are the all the steps we will include in this guide:
- Get ready: Valuable to know
- Step 1: Establish the Goal
- Step 2: Break it down & do the math
- Step 3: Educate yourself & build skills
- Step 4: Work every single day
- Step 5: Get sh*t done
- Step 6: Outsource repetitive tasks to others
- Step 7: Analyze and improve
- Step 8: Live like you’re poor
- Step 9: Save to invest
- Step 10: Invest
- Step 11: Re-Invest in the main business
- Step 12: Find a successful mentor
- Step 13: Build your network
- Step 14: Leverage your contacts to diversify your portfolio
- Step 15: Sell the business & do it all over again – but bigger
If you don’t feel like reading this long piece, you can always enjoy the video version here:
Here are some things you need to consider. Some might be holding you back or will slow down your journey towards getting rich:
Valuable to know:
- If you’re in debt, find a job or a secure source of income. Don’t take on anymore debt! Work your butt off and pay off the debt you have so you can start with a clean slate.
- This is going to involve an element of risk. In the first years you will not see much traction, yet it will require you to keep going at it. If you have kids, family members who rely on you providing for them, you can still get rich, but be a lot more conservative. Start building it as a part time project alongside your current job, until the revenue from the new business can sustain you and your family.
Income or savings
- Realistically, you will need resources. If you already have a job or have some savings these will come in handy. Even if you bootstrap it, there will be some costs. You might need a car, you will need to pay for some services, even if you try to do most of them yourself.
5 to 7 years
- The average business takes 7 years to be successful. If you can build something that lasts for 7 years, you will get rich. If you’re really smart and agile, you might do it in 5. If you’re slow it might take you 10, but you WILL STILL GET THERE!
If you were hoping for some secret formula of wishful thinking where the universe will drop a million dollars in your lap, this isn’t it!
We broke down the framework into 3 parts:
Part 1 (the first 5 steps): start making money
Part 2 (steps 6-10): building wealth
Part 3 (steps 11-15): getting rich
With that said, Here are the 15 steps millionaires and billionaires have used to get rich:
Step 1: Establish the Goal
The goal isn’t for you to “be rich” – because what does being rich even mean. When you set a goal it should invoice urgency within you. When you’re reminded of the goal it should motivate your lazy self to turn off Netflix and get back to work.
Every successful person out there writes down their goals!
And not any kind of goals, but SMART goals.
SMART stands for: Specific, Measurable, Achievable, Realistic, and Timely.
If a goal doesn’t have all 5 criteria, it’s not a smart goal.
Instead of wishing for becoming a billionaire and knowing this will not happen to you, why don’t you actually start closing that gap.
A smart goal would be: make $1000 a month from this new project by the end of December.
If you’re starting out, going from 0 to 1000 dollars a month is a big deal. You weren’t previously making any money from this idea and now you’re closing in.
Once you do hit it, raise that ceiling. 5000, 10,000, 50,000. We know people who are bringing in over a million dollars every month! And they all started with smaller goals, crushed them and then moved the ceiling up.
Resource: 15 Rules to Win at Life
Step 2: Break it down & do the math
For the first time ever, you actually have a goal and you’re serious about it. It’s time to see what needs to happen for you to hit that goal.
This is called: REVERSE ENGINEERING! Yes, you will have to do math if you want to get rich.
Money is a numbers game!
The beauty of math is that it works the same from everyone.
Example: In order to make $1000 per month, you will need to get
$100 from 10 people.
Or $50 from 20 people.
Or $10 from 100 people.
Do the math for your number!
Ok, now that you have your math it’s time to break down how to actually make it happen.
In order to get $50 from someone, you will need to have a product or service that is worth at least $50 to that person.
It will need to be accessible to that person & have a way to transact with him or her.
Let’s keep it simple.
In order to hit this goal, you will need: a product, a website and a bank account. See how we’re breaking it down into smaller pieces?
Then you break these down into smaller ones. What kind of product can you offer? Is it physical, is it digital, is it a service, what will it look like, what does it consist of. Break it down!!!
What do I need for a website: I need a domain name, I need hosting, I need a logo, I need to process payments in order to get the money.
Pay close attention to the type of engineered thinking we’re sharing, for this is the difference between success and failure. This needs to happen for this other thing to happen!
If you’re unable to break down goals into smaller pieces, you will never achieve them.
Every rich person knows this and now so do you!
Why? Because, now you finally have something you can actually do. Creating a website is something you can learn how to do. Everything in the smaller tiers is actionable.
Step 3: Educate yourself & build skills
The thing about actionable goals is that somebody else did it before you. There’s already existing knowledge of how this type of problem is solved.
It’s time to stop being ignorant and start learning. Yes, getting rich actually requires you to educate yourself. Learning about the space you’re in. Learning how things get done; what are the best practices, what are the things to avoid.
In this part of your journey, you are actually absorbing value out of the ecosystem, in the same way you have chosen to consume this piece of content right now.
Most of us hated school, because you were forced to learn about things which are not interested in, but you’ll see that this is different. Successful people genuinely enjoy learning new things about the industry their in. Because it helps them be more successful, do things better and make the journey more enjoyable. With every session you’re growing in knowledge.
But this isn’t enough. Theory is never enough. In order for you to cross onto the other side, from wishful thinking to do-er, you need to practice.
You don’t learn how to score a 3 pointer from a book. Yes, the theory definitely helps, but you have to get on the field and test it. The more you test it the better you will understand how to apply it.
Repeat this enough times and you’re building SKILLS for yourself, and skills have value. Because skills can be converted into money when you mix them with time.
A skill means you know how to do something successfully. It’s time you use those skills for personal gain.
Step 4: Work every single day
Welcome to what is most commonly called: THE GRIND.
This goal of your is like an incredible statue awaiting within a massive block of marble. Once you learn how to carve marble, it will take a long time until the end result is finished.
The rule is simple:
The more work you put in, the quicker you’ll see the result!
This is the first test in your journey: How badly do you really want it?!
If this is what you’re meant to do, if this is what you chose for your life, are you gonna quit after 3 months? After a year or 2?
The magic word is DISCIPLINE! You need to discipline your mind and your actions.
Always remember that if this project of yours succeeds, the rest of your life will be amazing.
That’s what’s gonna drive you to get back to work… every.. single … day!
It will be really slow in the beginning, but in a couple of months you will start to get your first wins, cherish them and then get back to work.
Step 5: Get sh*t done
Here we’re going to introduce you to a concept that has been the biggest differentiator in our own journey.
It’s called: MOVING THE NEEDLE
And it’s exactly what you think it is. It means getting shit done so that you’re actually making progress.
If you say you’re gonna launch a website, then buy the damn domain, buy the hosting, go live with it.
This step relies on you hitting those smaller goals you broke the big goal into. These move the needle for you.
Set specific dates for them and then focus specifically on finalizing these chapters.
You won’t believe how many people are “constantly working” on their project or startup, but never really moving the needle. They’re busy being busy, not making progress.
If instead you focus on big decisions that close the gap between you and these smaller goals, if you discipline yourself to work on them, you will win.
At this point you are making money, you understand how the business works, what needs to happen for it to grow and you should feel overwhelmed by all the day to day activities.
These first 5 steps are that initial momentum you have to generate for yourself and get that initial money coming in. The problem is, you’re now employed by the business. You don’t own a business, the business owns you and for now it’s ok, but it’s not sustainable. Instead you need to focus on growth, that’s where this next step comes in.
Step 6: Outsource repetitive tasks to others
We all have our strengths and our weaknesses.
Every successful person out there went 90 to 100% on their strengths.
Anything else will guarantee your mediocrity!
In order to do so, you will need to find people who can free up time for you, so you can focus on what you do best. Something to remember here:
You will never find anyone to work as hard as you do for your business!
If you search for a clone of yourself you’ll keep on searching. Instead find people who are willing to learn and that are great at following instructions. Have them take care of repetitive tasks which you can systematize. Break each task down for them and have them do it over and over again.
This part is also called: AUTOMATIZATION. It streamlines your production process, either through people or technology. Your goal should be to systematize and automate 80% of the entire business, with the remaining 20%, the creative part, the strategy part, falling on your shoulders.
If you are unable to bring in people or to automate the process, you will never grow. You will be trapped in a small rat wheel, running until exhaustion just to keep the lights on.
Do not be afraid to pay these people well. Take it out of your pay, you’re not interested in it. Pay yourself enough to cover your living costs. If you want to succeed: Everything else must go towards making the business better!
Step 7: Analyze and improve
With the day to day activities taken care of and the business moving, it’s time for you to take the wheel and decide where it needs to go and how you’re going to get there.
This part falls on your shoulders. Nobody knows your business better than you do. The more you understand and measure the higher the chance of success.
That’s why you always hear investors talk about: KNOW YOUR NUMBERS!
Study your business to the smallest detail, figure out what’s working and what isn’t. Study other businesses the same way you study yours and figure out what is working for them.
With these two knowledge sets you can have the ability to make changes that will benefit the business allowing it to grow. Your job is to manage the resources you have on had: revenue, the people that work in the business and yourself.
The better you are at managing these 3, the better the business will do.
At this point everybody around you will consider you semi-successful. You’ve basically solved the business equation and you’re doing well. The money is coming in and so are the temptations. This is where the next step comes into play.
Step 8: Live like you’re poor
This is the wall that keeps the majority of people from actually becoming rich. It’s something only rich people have figured out. Everybody else is stuck in the middle class and never understood why they never made the leap into the wealthy class.
Here’s the secret to getting rich:
The longer you live like you’re poor when you don’t have to, the richer you become!
Take a moment and go through that again:
The longer you live like you’re poor when you don’t have to, the richer you become!
Self control is what differentiate the real from the pretenders. Once you see that money coming in, you’re tempted to start spending it, to indulge yourself in the rewards of your work.
It makes sense, doesn’t it? You worked hard for the past 5 years and now you can finally afford a nicer house, a better car, better clothes, a better lifestyle as a whole.
But this is what we call: the middle of the road trap. You’re halfway into the race, you’ve come a long way, but unless you run the entire thing you won’t get the medal. You have to cross the finish-line to get your award.
This is how the middle class gets stuck in the middle class and usually drop down in time. They think they’re safe. They’re no longer hungry. They splurge. You see them flexing.
Be very very careful of this trap, for if you fall in it, you risk losing the majority of the things you’ve built. Self control and discipline at this step will allow you to actually become rich, instead of just looking like you are rich.
Here’s how you do it:
Step 9: Save to invest
You take all the excess money that you’re tempted to spend on liabilities and put it away. You don’t touch it. You don’t alter your lifestyle! Simply pretend it isn’t there. Work the same way you’ve done up to this point just for a little longer.
This is where wealth building fundamentals kick in. The money saved needs to go into ASSETS and not LIABILITIES.
Basically, instead of buying yourself something you want, save that money with the purpose of investing it into something that will generate you more money. There are two types of thinking:
Most people think that you work hard in order to make money so you can buy the things you want!
This is NOT what rich people do. We think differently and so should you!
Rich people work hard, to make money, so they can buy themselves money making machines.
Get enough money making machines and you can buy yourself anything you want without having to work.
The first type of thinking requires you to work more as you want more stuff, but with the second type of thinking, the more you work, the less you have to work in the future.
That’s what you have to do with the money coming in from the business.
You have to secure the future!
Step 10: Invest
At this point you’re finally building wealth. This wealth is here to stay. No matter what will happen to your business in the following years, you can still rely on this wealth to make your life easier.
We could do an entire 30 minute video on different types of investments you can make once you’re at this point in your journey, but in order to keep it simple there are mainly two types of investments you should make once you get here:
- Cashflow investments
- Appreciation investments or capital gains
Cashflow investments generate you monthly sums of money while appreciation investments go up in value in time.
Here are the top 5 most popular cashflow investments:
- Rental income from real estate
- Certificates of deposit or CDs
- Peer to peer lending
Appreciation investments focus on buying something and selling it in the future for a higher price.
Here are the top 5 most popular appreciation investments:
- Real estate
- Gold and silver
- Art & Collectibles
There are situations where you can achieve both. Real-estate is a great example for this. Although it generates monthly rental income, in time the price of the property will also go up, so if you decide to sell you’ll make a profit.
Unless you’re educated enough to make semi-calculated speculative investments, we recommend you go with real estate.
To be honest, we’ve been reading the likes of Robert Kyosaki and Grant Cardone which are phenomenal for general knowledge. The most practical advice we found available outside our personal mentors, comes from a podcast called BiggerPockets. Hundreds of real estate investors openly share their stories and strategies. It’s one of the goldmines of the internet and we’re happy give them a shoutout. They took all the knowledge from the interviews and distilled it into 2 great books.
The first one is called: How to Invest in Real Estate – The Ultimate Beginner’s Guide to Getting Started and
The second one is called: The Book on Rental Property Investing – but this one might be getting a refresh soon. Both by Brandon Turner.
If this is the first time you’re picking up a book on real estate: start with Rich dad poor dad by Robert Kyosaki. If you’re looking to take action, get the beginner’s guide. Even better: go to alux.com/freebook and sign up. Once you do you get to pick one of the books we mentioned and download it as an audiobook for free thanks to our partnership with Audible.
Once you begin investing, you just have to keep the main business going for long enough until your wealth gets to the desired outcome.
Step 11: Re-Invest in the main business
By this point you’re already building wealth. The main business is running ok, you have some side investments that are making you richer and you’re feeling amazing!
The temptation here will be an all the shiny objects around you. All these opportunities just waiting for you to grab them. This is the second trap you’ll find in your journey to becoming rich.
It’s called: Neglecting the cash cow!
All the wealth you’ve managed to get to this point is because of your main business. You got it this far because for the first 2 parts of your journey you’ve been obsessed with it.
This is usually when most businesses see a dip. Why? Because you’re distracted. You’re no longer going after it the same way you used to and the market is changing, the customer is changing, your competitors have caught up and you’re swimming in dangerous waters.
Because of your investments, you’re no longer going to be poor, but unless you elevate the main business, you’re never going to be rich.
This is where the consolidation of the business begins.
A great rule of thumb in this situation would be:
allow half of the money the business is generating you to go into investments and use the other half to solidify and improve the business itself.
There are 2 ways to scale a business:
- Vertically – you get better at what you’re already doing. You increase production, you improve the quality of the product and you’re able to charge more per sale.
- Horizontally – you introduce a new product, you create add ons, thus satisfying adjacent needs.
By this point you’ve been at this business for around 6 to 7 years. Times have changed since you started, there are new tools available and you need to start learning how to leverage them to keep your business afloat. Your competitors are already using them and coming after your market share.
If you’re both equally educated, the win will go to the one who’s hungrier and wants it more.
This reinvestment in both yourself and the business is the beginning of the 3rd and final chapter in your journey to becoming rich. Here’s how to make sure you don’t screw it up!
Resource: 15 Ways Rich People Go Broke
Step 12: Find a successful mentor
Think of how horrible navigation was before the GPS was invented. You had to figure out where you were, which roads go where, what they were called… uhhh horrible.
Then GPS became a thing and are suddenly a lot smoother. What would life be like without Google Maps or Waze?!
The road to riches doesn’t come with a complete GPS, but the next best thing is having someone who’s been on this road before guide your step. That’s why mentors are such an incredible resource to have in your arsenal.
If you’ve gotten to this step, it’s clear to everyone that you’re committed to this project, that you’ve got the skills and are willing to put in the work to make this successful.
Statistically speaking, there is at least one person who’s done something similar to what you’re doing now and came out victorious. There might be a handful of people like this in your country and for sure there are hundreds of them internationally.
Connect with these people, be honest about your intentions and they will gladly help you.
Successful people love to help other people become successful as long as they prove themselves worthy!
Prove that you’re not wasting his or her time and build a relation. Having regular checks with your mentor about what you’re doing and how your business is evolving will not only save your business from failure but it will accelerate its success.
Resource: 15 Reasons Why You Should have a mentor
With this mentor in place, it’s time to solidify your network:
Step 13: Build your network
Because of the fortunate position you now find yourself in, you’ll gain access to different circles. Your job now is to connect!
Rich and successful people tend to stick together. Why, because it’s a lot harder to relate to your long forgotten cousin than with someone who’s been through more or less the same journey as you to get to where you are today.
At the top it isn’t lonely!
It’s just people like you who’ve made it looking to make friends.
Everybody shared similar struggles and everyone is sharing advice on how not to screw it up.
This is the point where you get the change to build a safety net from ever going poor again.
You’ve heard it before on this channel, but we’ll say it again:
Your network is your net worth!
These successful people you connect with, that you trust and whom trust you are willing to help each other in case anything goes wrong. It’s more like a pact: we help one another so we all never go broke.
They provide access to funding, resources, contacts and more. Never underestimate the power of building a powerful network around you. Not only they will help you protect what you have, you’ll make each other even richer!
Step 14: Leverage your contacts to diversify your portfolio
At this late stage, you have the business that’s going phenomenally well, you have several investments that are doing ok and found a new group of friends.
You’re all looking for the same thing: new opportunities.
Because of the size of the group you together open doors to opportunities that are beyond each individual’s reach, but not of the group as a whole.
That’s when you pool resources and start doing mega-deals.
If by yourself you were buying single family properties, with the group you’re buying entire buildings. You’re developing projects and a much larger scale.
Because of your network. You have access to the opportunities they all identify, allowing you to diversify your portfolio.
All you have to do now is cash in.
Step 15: Sell the business & do it all over again – but bigger
Every business should have an exit plan.
You start -> you build -> you grow -> you exit.
This is pretty much the path every person who’s made a lot money has followed. There’s always a bigger fish in the market and because you’ve been performing so well you probably caught their attention.
Between year 7 and year 11 you’ll be faced with a period of transition in your life. You’ve been doing this for a decade and you might be interested in doing something else. It’s also a prime moment of exiting the business because the market is doing well, the business is solid thanks to the investments you’ve made at step 11 and you’re life has changed.
This is the time where you officially let go and cash in.
It will feel weird because you’ve invested so much time, emotion and energy into building this, but at one point you have to let it go – that is in exchange for a ridiculous sum of money / otherwise just keep milking the cow and do business as usual.
This exit allows you to completely recalibrate your life and pursue new goals. In the past decade you have evolved as a human being alongside your business and your priorities have shifted. What you needed 10 years ago is no longer what you will need 10 years from now. So you gotta make the change.
Your family’s needs will always be taken care of. Everything you care about is protected. You can now do whatever you want.
Here’s the interesting part. Everybody thinks that if they sold their business for 10, 50, 100 million dollars or more, they’ll never work in their lives again. The image of the retired person drinking mojitos on the beach is an illusion.
After 6 to 12 months you’ll go insane. If you’ve made it to this step you’re a real entrepreneur, it runs in your veins: only now… you have a completely different start. You have resources, connections, a premium skill set and a desire to change the world!
This brings together the final stage of your journey to getting rich. Most people never make it out of the 1st stage and do not get to enjoy the fruits of this decade long commitment which brings us you, the person consuming this piece of content right now.
If you were to go through the list of steps, where are you right now in your journey? We’re really interested in knowing what are you struggling with, so we can maybe provide some guidance in the future. Please share the step you’re currently at in the comments. Believe it or not, our CEO reads every comment on the Sunday videos because these scripts are put together by the man himself. He’ll be personally replying to your comments.
We know it’s been a long video! This type of content is incredibly valuable and we wish we had this type of guidance when we were starting out. If our free content is this good, imagine the value in what we’re offering next Sunday when we’re going live with our meditation course.
In your journey to get rich, you’ll have to maintain focus and control your emotions. The best tool for this is meditation. We created the mind mastery course for entrepreneurs and high achievers. We specifically designed it with the Aluxer in mind. If you wanna learn how to deal with stress, anxiety, discipline your mind and your actions while building a skill that will stick with you for the rest of your life go to alux.com/mindmastery and join the waiting list. Every person who is on that list before next Sunday will get a $100 discount code as a thank you for being a true aluxer.
We hope you found value in this get rich ultimate guide put together by us and can’t wait to see what you do with it!