08 Aug Unlocking the Keys to Wealth Building (Part 4)
We make a living by what we get, but we make a life by what we give. (Winston Churchill)
I have been sharing over the past few blogs about Unlocking the Keys to Wealth Building. The BIG picture of wealth building is what I call The Triple X Factor. In the Triple X Factor there are three kinds of money—The First X Income, The Second X Income, and the Third X Income. If you haven’t been following the last few blogs, go back and read about The First X Income and The Second X Income.
Today, I want to share with you more about Unlocking the Keys to Wealth Building by explaining The Third X.
The purpose of Third X Income is to give it completely away. If you have reached the Third X, you now have more money coming in than going out, and you are free to give Third X Income away. You are now Unlocking the Keys to Wealth Building! Instead of buying more for yourself, you can now choose to invest in impacting the world! L.G. LeTourneau, founder of Caterpillar, actually ended up giving away 90% of his income. He only lived on 10%.
So, what do you do with the excess at the Third X? What do you do now that you are Unlocking the Keys to Wealth Building?
Well, you can choose to just give it away to a philanthropic charity or event, or you can choose to take some of your assets and invest them for social impact. What do I mean by that? For example, let’s say you sell a couple of rental properties and make $100,000 profit. You can take that money and, instead of reinvesting it in real estate, you can invest in an investment fund like one that we have here at Tricord Global.
The beauty of it is that this type of investment is different than if you just gave the money away. When you give the money away, it’s gone. But when you invest in a social cause, you not only get the principle back, but you get to earn interest and have an impact with that investment.
Tricord Global’s vision statement is “Transforming the world, one village at a time.” We do that through microfinance. Tricord does other things, but I believe that the microfinance loans to individuals and to banks are what will truly move people out of poverty.
The idea behind the microfinance loan is that we take a dollar and that same dollar is lent over and over. It is the Law of Acceleration. Instead of taking that dollar to buy a fish for someone, we are taking that dollar and using it. If I teach that same person how to fish and we lend that dollar to them to get them started, then we are able to keep that dollar in the country through the interest rate that it charged, and we’re able to continue on with the process and help many, many more people. In our giving we must be thinking in terms of stewardship in order to create sustainable enterprises in developing nations and at home.
The goal of the Third X making sense of making money for making a difference. That is the vision and statement for Wealthbuilders and it’s the vision of the Third X. You position yourself financially, not just so you can have more. You position yourself so that you can impact the world. Let’s band together to make a difference in the world. What are you doing to Unlock the Keys to Wealth Building? What are you doing to impact the world?