Engine 03 · Wealth
Your business makes money.Your assets build wealth.
Entrepreneurs spend years learning how to make money.
Far fewer build a system for what happens after they make it. That's where wealth begins.
Revenue isn't wealth.
Revenue isn't wealth. Income isn't wealth. Wealth is ownership.
The goal is to systematically convert today's cash flow into assets that pay for tomorrow.
The Wealth Journey
- 01
Foundation
Build stability. Control destructive debt. Create reserves. Start accumulating.
- 02
Accumulation
Systematically convert income into assets.
- 03
Acceleration
Increase investable cash flow and allow compounding to become meaningful.
- 04
Strategic Reserve
Build significant reserves and productive/scarce asset ownership. Use liquidity and borrowing intelligently rather than being forced to sell assets at bad times.
- 05
Financial Independence
Your assets increasingly support your lifestyle. Work becomes more optional.
- 06
Legacy
Preserve, structure and transfer wealth intentionally.
Foundation
Build stability. Control destructive debt. Create reserves. Start accumulating.
- — Stability first
- — Destructive debt under control
- — Reserves started
- — Accumulation begins
Accumulation
Systematically convert income into assets.
- — Income converted to assets on a schedule
- — Automated transfers
- — Assets owned outside the business
Acceleration
Increase investable cash flow and allow compounding to become meaningful.
- — Investable cash flow increases
- — Compounding becomes meaningful
- — Balance sheet reviewed like a P&L
Strategic Reserve
Build significant reserves and productive/scarce asset ownership. Use liquidity and borrowing intelligently rather than being forced to sell assets at bad times.
- — Significant reserves
- — Productive and scarce asset ownership
- — Liquidity instead of forced selling
Financial Independence
Your assets increasingly support your lifestyle. Work becomes more optional.
- — Assets carry more of the lifestyle
- — Work becomes optional
- — Time becomes yours again
Legacy
Preserve, structure and transfer wealth intentionally.
- — Preserve
- — Structure
- — Transfer intentionally
Strategic Reserve
Build your own Strategic Reserve.
Governments have reserves. Banks have reserves. Large corporations have reserves.
Entrepreneurs should think strategically about reserves too.
I think of a Strategic Reserve as capital designed to do more than sit idle.
Its jobs can include:
- Protect.
- Compound.
- Create liquidity.
- Create opportunity.
- Reduce forced selling.
- Increase optionality.
The exact strategy depends on the individual, business, risk profile and stage of wealth.
Educational information only. Jay Altman is not acting as your financial advisor, broker or fiduciary, and nothing here is a recommendation to buy or sell any security or asset. Investing involves risk, including loss of principal. Consult a licensed professional before making financial decisions. See the Investment Disclaimer.
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