Hey it’s Sasha Evdakov and thanks for joining me here this week at backstageincome.com, where I share with you how money is made behind the scenes in your business and also your life.
In this week’s video what I’d like to share with you is the 5 stages of wealth, and these are personal stages of wealth that we may go through.
Keep in mind that when going through these stages there might be some sub stages as well within these stages, so stages within these.
But hopefully this will give you some insight and ideas of what stage or area that you’re at and hopefully you’re happy with the stage that you’re at, and if not maybe look towards improving and continue to grow to another or the next stage in your life.
One thing to keep in mind is that this video is not about the income types, it’s about the personality types and what stage you are personally in terms of achieving wealth and growth.
If you’re looking for the income type’s video then click this link right here and you’ll be taken to that video.
We’ll start with the base level or the foundational level, personal stage of wealth. And that is really the beggar.
And the beggar is someone who begs for money, they really don’t care to put the time or the energy or the effort into achieving any source of income.
It’s really about them going out there and begging, asking other people for money.
I understand that at times you may need to beg and do things to beg in order to complete and go to that next stage in your life.
However if you’re staying at that stage, if you’re stuck at that stage and you’re just begging for other people to always give you a hand out.
If you’re constantly asking for something but never adding value to other people, or never returning the favors, then that’s the base level, and that’s the first stage of wealth.
It’s basically, you don’t really have wealth, you’re dependent on other people’s wealth to contribute to you.
In the second stage, I like to call this stage the exchanger, and if you’ve watched my income levels video, then you know and understand the exchanger is that linear exchange of time for money.
It’s basically having a job, because when you exchange one hour of your work time for money, that’s the exchanger, so if you’re getting paid $10 per hour, and you work 2 hours, you’re earning $20. If you work 5 hours you’re earning $50 and so forth. So you’re exchanging your time for money, and this is what most people often refer to as a job.
If you’re in the second stage, it’s actually quite difficult to build wealth or a lot of wealth, because the problem is there’s only 168 hours per week, and there’s only so much you can work. You need time to sleep, you need time to rest, you need time to eat.
With that in mind, you have to always think about what’s the next level that you can go to.
If you are personally happy with your job and you want to continue working for your company and employer, there’s nothing wrong with that.
But just understand there’s other levels out there and other things you could achieve if you’re personally interested in that.
With that in mind, the third level is the self-exchanger. The self-exchanger is very similar to the exchanger, where you’re exchanging your time for money. Except the difference between the exchanger vs. the self-exchanger, the self-exchanger exchanges their own personal time for money.
This is no boss involved. If you’re building your own business, let’s say back when I used to have a photography business, or a logo design business, I’m exchanging my time and my services, so it may take me five or ten hours of time to create something and exchanging it for the money that is earned for either creating a logo, going and taking photos at a wedding, so I’m exchanging my time on my own terms for money.
The difference here is that I don’t have a boss or someone to depend on in the sense of earned income.
But I do depend on my clients and my customers, so you’re still getting and earning money from other people.
However, the beauty here is you get to do it on your own terms and in the way that you want to do it.
The exchanger is basically working at a job, getting paid your $10 per hour, and then getting that earned money
Whereas the self-exchanger is you get to set the price and the rates if you want to increase those rates, then by all means you can do that, if you want to charge on a per project basis, then again you could do that, a flat fee for let’s say installing tile in someone’s home or putting on a roof on someone house.
Stage number 4 is the leverager. When you think about leveraging, you want to think about it in terms of not using your personal resources, such as your time and energy as much as possible, but you’re still earning an income on an exponential curve.
If we go back to the photography example, let’s just say I have a photo studio, and now rather than me personally going out and taking pictures of couples and wedding couples and baby pictures and all kinds of different photos.
Instead what I may do is actually have five or ten different photographers who go out and take the pictures for me.
Instead what I actually have is the ownership of the business and I’m bringing in new clients and customers.
If I get $1000 for a photo session, the photographer that actually goes and takes care of the pictures and actually does the taking, the editing and all the other nuances that go with the project, they may only get $500 or $700.
That way I’m making $300 for simply bringing in the customers or the clients or the business is earning that income.
That’s what leveraging is all about. It’s using someone else’s resources like their time and energy and expertise to continue to grow and make money.
There’s a lot of famous companies that do this in terms of any company that has lot of employees, such as subway restaurants, McDonalds, burger king, all these restaurants franchises are using other people’s time and resources or energy, and they’re trading that and continue to open up shops.
Subway will open up another shop, and then another franchise and another franchise and they continue to profit from those franchises even though no additional time and resources is really being used from the original owner or investor.
There might be some kind of things that go along with their time and energy, but in general it’s using a very small fraction of that in order to generate much more revenue for the big company.
The wealth wizard
And finally the fifth and final stage that you can personally get to in terms of working with money and your personal self, and that is to be a wealth wizard.
When it comes to wealth wizards, people who make money from money or with money, that’s when you are a wealth wizard.
There’s a lot of ways to generate money and income and some people generate a lot of money and income, and you don’t have to be a wealth wizard to become wealthy or rich.
Instead what you need to know and understand is how to use leverage to make as much money as possible with the tools and resources that you have available.
However, in terms of educational level, in terms of working and dealing with money, in terms of expertise about money, if you’re a wealth wizard, then you know how to make money from money.
And this is typically people who are investors or brokers, people who actually trade money, like currency or forex, if you’re trading on the stock market, if you know how to take money, put it into something and convert it into more money, now you’ve become a wealth wizard.
Those are the 5 levels that you can achieve in terms of money expertise. And you can be at any one of those levels and you can continue to improve, however you don’t have to be at the highest level to be successful or to have a good life, or to simply make it big and live wonderfully.
Some people that are simply just the self-exchangers working for themselves can generate a good two or three hundred thousand dollars a year salary without a problem.
Some of them earn more than multiple millions of dollars.
And then especially looking at record companies or record labels or looking at people who write some very famous books or music or create movies and videos. Some of those people that are leveraging their time, they’re duplicating things are creating this residual income.
Or leveraging their income through other means or sources by distribution. The leverage happens through distribution.
You don’t have to get to the highest level in terms of expertise and education to become wealthy, you simply just have to leverage something and get to that one level to where you’re consistently making money without your additional time, energy or personal resources.
Because in the end remember that there’s only 168 hours in a week and your time is precious.