Grant Cardone’s 10 Steps to Create Indestructible Wealth from Scratch

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Do you have a desire to be wealthy? Did you have a nest egg but lose it? Are you ready to build generational wealth? Grant Cardone's Wealth Creation Formula is your path to achieving whatever level of wealth you desire and how to keep it. Instead of obeying a rigged system, break free, do the work, and start building your legacy wealth today!

I know you are just as busy as I am so I've organized the information into three sections; The outcome and actions to achieve it, A condensed summary, and finally my full summary.

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Outcome: Create indestructible wealth from scratch

List of Action Items

  • Commit to the wealth creation steps, do not skip steps, be willing to go back and reinforce steps.
  • Create any level of income flow you can, immediately.
  • Fortify and increase your current income flow.
  • Save every penny over your basic needs
  • Spend your money, energy, creativity, and resources to increase your investment, financial, and sales education, and experience.
  • Fortify current and create multiple interdependent flows of income
  • Pay attention, fully understand, increase both the number of flows and earn their amounts.
  • Maintain a basic lifestyle, invest in yourself, and continue to save everything until you have $100,000 or more in your sacred accounts.
  • Invest in the sure-thing big play intimately understood investment that could never be destroyed and provides cash flow and a lump sum return.
  • Increase both the number of interdependent flows and the amount of each income flow.
  • Use this Wealth Creation Formula to do what millionaires do and create wealth for yourself.

Condensed Content Summary

The Wealth Creation Formula is the formula to be used to create wealth in any area of your life including money, time, fans, friends, or an abundance of anything. The formula is the method or list of ingredients for achieving wealth ( Introduction ).

It is impossible to get rich without income even if it is heavily taxed income. First, create a target for your income. Then study and learn how to create that income goal NOW. As you develop yourself you will be able to make more money with less time. Even if you hate your job, you should be looking for ways to add more value in order to fortify the income and eventually grow it ( Step 1: Create Income ).

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Once you have begun to create income, don't get a 2nd or 3rd job or even worry about saving right now; all you want to do is fortify and increase that income flow. However, don't get satisfied with one flow of income, later in the wealth creation formula, you will need to add additional flows so keep your eyes open ( Step 2: Increase Income ).

Save every penny over what you were making before the increase. You will never gain wealth if you don't save for the big investment deals; you will be broke forever and working harder than when you were at zero. Keep living at your same standards; only spend money on what you need not what you want. A person making $100,000 a year can just be a broke as a person making $40,000 a year if they both spend all their money. Instead take control of your income and expenses in order to save 40% of your income in preparation for investing in yourself and eventually the big deals ( Step 3: Save It All ).

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You may have been told to invest in pieces and diversify your portfolio; this is wrong. You need to make huge moves and know what you're doing with what you invest in. At this stage, you are still increasing income and saving money but the only investments of money, time, creativity, resources, and energy needs to be spent on improving yourself that help you grow your wealth. The rest you are saving for the big deal ( Step 4: Invest in Yourself).

You won't be able to jump from 1 to 7 flows overnight but you must understand that you cannot depend on just one income flow, resource, friend, fan, book, etc for your wealth creation. Your first flows of income must have an interdependent relationship to maintain control of them. Attempt to get any many flows as possible from the same location, it's possible with some creative thinking to get three to seven flows of income from one job. In fortifying your first flow if you are paying attention you will be able to find the additional flows ( Step 5: Create Multiple Flows Of Income ).

You must pay attention and fully understand each flow of income you have so you can increase them rather than abandoning them with new income flows. To increase current flows on income, you must get creative and become a salesperson. Your value at your job is based on your ability to create revenue at your post. Don't try to reinvent the wheel, learn how to sell the wheel to more people faster ( Step 6: Increase Those Flows ).

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Saving at this step is very different and harder than earlier in the Wealth Creation Formula because you will have more money saved than you are used to. Remember, all you should be doing with your money is investing in yourself and waiting to have enough for the big plays. Your sacred accounts shouldn't be touched until you have $100,000 or more in them and don't think of them as available until they are over $1 million ( Step 7: Save Some More ).

This is the stage where you put your money into a big play like a business, real estate, or even the stock market. You don't need to know everything about every investment. It is best to pick your favorite and master it. If you cannot understand it, don't invest in it. The criteria for an investment should be that it has to be a sure thing, you need to know what you are doing to the point where you can explain it to someone else, and you need to make sure it can never be destroyed. Additionally, a sure thing investment would provide steady cash flow and a big lump sum return ( Step 8: Invest In Your Big Deal ).

Increase both your number of flows and the amount of each income flows. Keep your main flows going while you build multiple flows of income. Don't abandon what is working for you. 80% of millionaires work for someone else. You should only be investing in a sure thing. Each flow should be helping the other to grow. Find your purpose or you aren't going to get super-wealthy. this is what keeps you going fighting for more, keeps you hungry, and hunting no matter what you stack away ( Step 9: Increase Numbers of Income Flows ).

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It is impossible to get rich without income. Don't worry about the business plan in the beginning focus only on income flows and saving all your money. Review your purchases and only spend money on necessitates. Most invest too early and with too little, continue saving until you have more than $1 million to put on your big deal. Keep and review all your current flows of income consistently and continue expanding them cautiously. Only make investments in yourself, because it gives you a positive return on the investment that you can control.  For additional and more detailed information on Grant Cardone's Wealth Creation or continue reading my full summary below.

Full Content Summary

Estimated Reading Time: 12  minutes

Introduction

The Wealth Creation Formula is the formula to be used to create wealth in any area of your life including money, time, fans, friends, or an abundance of anything. The Wealth Creation Formula begins with creating income, then increasing income, saving, investing, creating multiple flows of income, increasing those flows, saving more, investing in the big deal, increasing the number of income flows, and repeating the process. The formula is the method or list of ingredients for achieving wealth. The only ways to gain wealth are to inherit it, big investments, or through earned income.

I went from the immature person making unsupported claims that I would be wealthy to constantly hear other people make unsupported claims that they would be wealthy. No one who built their own wealth did it without a plan. It would be like baking without a recipe or prior baking skills. It's not impossible but highly improbable. If you want to be wealthy then you need a long boring plan that you are committed to. Grant Cardone's Wealth Creation plan is not as easy as it seems but it works.

Step 1: Create Income

Despite what anyone tells you, it is impossible to get rich without income. It cannot happen. The number one method of earning an income is through a job even though it is heavily taxed. Because of the taxes, most people want to bypass income and create wealth. The reality is you aren't going to get away from it. The whole game is rigged. The wealth creation formula is the method of getting the rigged game to work for you, but entry to the game is income. You cannot become wealthy without increasing your income even if it is heavily taxed.

A job is the fastest easiest way to create income but it is by no means the only way. First, create a target for your income. Then figure out what you need to do to create that income goal NOW. The rigged system says if you want to create an income you must go to college first. You don't need a degree to get income. A college degree may be required for a specific career path but it is not the way to start your path to wealth. Even though you don't need college, you will have to learn. You need to learn how to create income as fast as possible. We all start somewhere. It doesn't matter if you make $10,000 or $400,000 a year, you need to start with any level of income you can get. As you develop yourself you will be able to make more money with less time. Income is step one, the front door to wealth that you must walkthrough. Anyone can create income.

After you create any level of income, you can learn how to increase it. Never complain about income or the source of that income. Even if you hate your job, you should be looking for ways to add more value in order to fortify the income and eventually grow it. Part of your job is to ensure you have a job tomorrow. Make sure your position cannot be replaced by a piece of technology or a new employee. You don't have to make money, you need to create a position for which people want to give you money.

There are so many gurus who sell you on passive income, Grant is one of the first who keeps it real. Most people will never achieve passive income because they don't know how to make enough earned income. Personally, I wasted about 3 years trying to jump over earned income and gain passive income. Again it is possible, but it is the path of a crap ton of resistance. If the most important method of wealth creation is income, then the best place to start is a job. It does not you any less of an entrepreneur, in fact, it gets you closer to your ultimate goal.

Step 2: Increase Income

Once you have begun to create income your only concern should be to increase it. Don't get a 2nd or 3rd job, instead find a way to increase your current stream of income. Don't even worry about saving right now, all you want to do is get a job and increase that income flow.

Don't worry about a business plan. You need to first create income so that if you need to go to the bank later you can show them how much income you made; sooner or later they are going to ask that. Follow the steps of the Wealth Creation Formula and don't skip ahead. At this stage, all you are focused on is increasing the income of your first revenue stream.

Don't get satisfied with your first income flow; remember that is how the rigged system wants you to be. Most people are satisfied because they are comparing their situation to someone else's or they are simply uneducated and that's where they stop their wealth creation. You will never become wealthy with one income flow or never increase that income flow. Don't let your wealth depend on one income flow that never increases. If you are focused on increasing your flow then you won't get sidetracked with the negative. If you have a bad review online, don't worry about removing the bad review focus on increasing the good reviews. If you lose a client, it shouldn't matter because you are focused on gaining more and more clients. Most people stop here and never increase their flows and wonder why they can not create wealth.

This step brought amazing insight to me. Everyone I know, including myself, is always jumping from job to job chasing higher income. forfeiting the wealth-building education that would be gained if discover how to increase your flows at the same job. A lot of companies even offer training which could be used to gain value and increase your income. If you are dedicated to wealth creation then mastering income streams at any job is an important first step. The only thing I would add to this step is that it is best to find a job that would help develop the skills required of an entrepreneur.

Step 3: Save It All

Saving all the increased income is what separates the haves from the have-not. Save every penny over what you were making before the increase. You will never gain wealth if you don't save; you will be broke forever and working harder than when you were at zero. The rigged system skips the first two steps of wealth creation and starts here. The system wants to save for the rainy day or just save to save. If you want wealth you are not saving just to save, you should be saving for the big play. Keep living at your same standards; only spend money on what you need not what you want. Don't buy anything new or gain more debt. Your lifestyle at this stage should not change. In fact, the world should think you are broke. If you want to achieve wealth faster then make harsh financial sacrifices now. Remove costly things you don't need by selling them, or not purchasing them, and save the money. It sounds tough but it will be worth it. Most people don't know to make money. Fewer people know how to keep it. The system is already rigged for you to kill yourself to earn money requiring you to sacrifice time with your family.  So don't waste the money. The only reason people don't want to accumulate money is that they have only blown the accumulation of money as soon as they get it. It takes a person truly devoted to wealth creation to keep scared accounts of money that will not be used in emergencies or pleasures.

A good method of keeping on top of your money is to keep up with the percentages. In most cities in the United States on average, the government takes their cut off the top because they don't trust that you will have any money for taxes after expenses, groceries make up 13% of your income, 34% will go to housing, utilities 5%, transportation 15%, health care 7%, insurances 11%, entertainment 5%, and that everything. Most people make more money to keep the same percentages and that is why a person making $100,000 a year can just be a broke as a person making $40,000 a year. The person making $40,000 a year usually complains about it and believes that if they were making more then they could become wealthy. Complain about your income, little as it may be, it will go away. Instead, take control of your income and expenses in order to save 40% of your income in preparation for the big deal.

Don't pay debt balances down right now. Remember, to the outside world you are still broke. The money you have saved is in a sacred account which you don't spend unless it is to invest in yourself. If you pay down debt right now, you won't have enough to pay it all and you won't have enough left over to create wealth. By focusing on wealth creation, you will be able to pay those debts off and never get into bad debt again.

I have such a love/hate relationship with saving. It always seems that as soon as I have any large sum of money saved, some emergency comes around ready to take it. Now that I understand the wealth creation formula a little better, that is because we were skipping the create income and increase that income steps. If anyone has shared my financial revelations, then you know saving by itself is pointless. But after you are able to increase your income, then you are actually getting closer to wealth creation.

Step 4: Invest in Yourself

Most people try to invest too soon without knowing what they are doing and end up broke. You may have been told to invest in pieces and diversify your portfolio; this is wrong. This is part of the system that holds people back from real wealth. You don't want to start with little and end up with little. You need to make huge moves and know what you're doing with what you invest in. The only reason to create more income and save money is to invest. So while you are saving money, study the method you will use to invest it and begin looking for the big deal you want. Don't just throw it into a 401K or IRA because you can't just reinvest it and there is no real value until you are old. You must create a large-scale systematic plan or arrangement for attaining your desired level of wealth.

You can invest money, time, creativity, resources, and energy and it is important to pay attention to it all. If you are putting too much energy into the wrong investment you could be wasting your time and even your money. Pay attention to what you invest your time and energy into as much as what you invest your money into. If you don't have enough time and energy to invest in the big deal then keep saving until you do.

The two reasons most people do not become wealthy is that they never earn any real amount of money and they never invest big enough amounts in big enough investments. You are never too young or too old to start investing, but most people invest too early with too little. The big players invested all-in with what they believed in with huge investments of time, energy, and money and they didn't mess with anything else until that first investment was so big they had money to play around with. Stop thinking with limitations for your future wealth. It does take money to make money, it takes courage.

This stage is all about yourself and the ability to create more flows of income. That includes your education, your connections, your professional experiences, or anything that helps you grow your wealth.

Education and experience is the only way to succeed at anything. I think most people don't consider that in order to invest in those really big money-making deals, it's not just about having the money; it's about having the education and the experience. So spending your resources early on in your wealth-building journey on gaining education and experience for yourself is yet another vitally important step on the way to wealth.

Step 5: Create Multiple Flows Of Income

You can have one huge massive flow of income with no other sources of income and go broke. Because if that source of income dries up, you have nothing. The average millionaire has seven flows of income. You won't be able to jump from 1 to 7 flows of income but you must understand that you cannot depend on just one. And remember wealth is not only about money, this rule applies to friends, fans, books that are written, accumulation of information, etc.

Set a target for the number of flows you want. Never change that goal only increase your action. Those who don't set a target typically never hit achieve it. Your goals should include all the areas of your life you are looking to create wealth.

Start where you are. Your first flows of income must be symbiotic or have an interdependent relationship. Once you lock down one flow, create another flow similar to it. Your flows must work together to make each flow stronger. Keep your multiple flows close and under control. Attempt to get any many flows as possible from the same location, it's possible with some creative thinking to get three to seven flows of income from one job. Control the 3 feet around you before you try and conquer the world. Fortify your first flow of income and build your other flows next to it. In fortifying your first flow if you are paying attention you will be able to find the additional flows.

This step, I believe, is the one that will get you out of the rat race. This step is why lottery winners, star athletes, music stars, and instant millionaires can go broke. If you get satisfied with your income flow, you won't realize you need to get any additional flows of income until it's too late. So don't get satisfied and keep creating additional flows.

Step 6: Increase Those Flows

Almost everyone has two or three flows to start with. Take a look at every flow you have no matter how small including saving accounts. You must fully understand what flows of income you have so you can increase them rather than chasing new income flows. To increase current flows on income, you must get creative but don't throw your money into something because it seems exciting; that's how people go broke. Money goes to the things you put attention to. Put your attention on your flows of income so you can increase them.

To increase your current flows, you have to get into sales. Sales include communication, motivation, branding, marketing, and going wide. This is not the stage where you worry about making products better. Your ability to create revenue in the marketplace and your value at your job is based on your ability to create revenue at your post. Your value is not to organize our company or make it do more, commit to increasing revenue and figure out the rest later. Your wealth creation is about flowing with your spouse, your kids, your company, your department, and anyone else around you thinking about increasing revenue. Don't try to reinvent the wheel, learn how to sell the wheel to more people faster.

Revenue can solve all product problems if you put your attention on it. Know the targets you want to hit. Figure out who you have to make contact with on each of your flows to see how they can go wider and wider. Every day write down your targets when you wake up and when you go to bed. Keep your attention on everything that is a flow. Who's got your money?

Every budding entrepreneur has probably quit more jobs than they can count. We get so eager to launch our businesses that we forget about building our wealth. Personally, I didn't realize I was sabotaging my business by quitting my job and trying to be a full-time entrepreneur. Grant's Wealth Building steps apply directly to business building. In the early stages of building, never disrupt a current income flow in pursuit of a possible flow. That means don't quit your job

Step 7: Save Some More

Saving at this step is very different than earlier in the Wealth Creation Formula. You might have gone from $0 in the bank to $18,000. Remember, you don't want to go out and blow this money and start over from zero. All you should be doing with your money is investing in yourself and waiting to have enough for the big plays. Keep saving, don't make big plays yet even if you have saved $250k; you aren't ready for that yet. Focus on saving.

You want to build lifeboats so when the ship goes down you are ready. Having one million dollars in the bank does not make you stress-free. It puts you exactly into anxiety because you can lose it all with one bad investment. Don't get ahead of your wealth and begin bragging; don't become a pretender spender with a fancy car or expensive watch. Stick with what's working and keep saving money in sacred accounts. Money market accounts are a little better because it limits withdrawals. This works in your favor because you don't want to take frequent withdraws from these accounts. These accounts shouldn't be touched until you have $100,000 or more in them and don't think of them as available until they are over $1 million. Keep your attention on saving and putting those flows into these sacred accounts. Only make investments in yourself because it gives you a positive return on the investments that you can control.

It doesn't take money to make money; it takes courage. It is just as tough to not go out and spend money as it is to risk money on an investment. Right here you are planning to reach out past that three feet of control and it's scary. You have worked hard for this money, you must wait and get ready for the big play. Be extremely conservative and don't make your first big investment until you have over $100,000 and you may want to wait until you have $1,000,000 in your sacred accounts.

This step will separate the flashy wannabe wealthy people from the actually wealthy people. You must develop the skill of patience and delayed gratification. I imagine this to be the hardest part of wealth creation; you would need to maintain the same standard of living enough though you have real money saved. The best part is that if you can endure this step of wealth creation, your life will never be the same again.

Step 8: Invest In Your Big Deal

This is where you get rich folks. This is where you make the big play. You need to expend money, not just expend it. By definition, an investment is, "the action or process of investing money for profit or material result." You need to take your money and put it into a big play like a business, real estate, or even the stock market. There's a lot to know about investments and this space can be confusing. That's ok because you don't need to know everything about every investment. It is best to pick your favorite and master it. If you cannot understand it, don't invest in it. Warren Buffet said rule number one of investing is 'never lose money and rule number two is 'never forget rule number one.

The three types of investment possibilities to look at are the big bang, dividend, or both. The big bang is an explosion on the return. The dividend is a cash flow return. The best investments give you cash flow on a regular basis and a big return at its conclusion. The criteria for an investment should be that it has to be a sure thing, you need to know what you are doing to the point where you can explain it to someone else, and you need to make sure it can never be destroyed. You know an investment can't be destroyed when they are a part of everyday life. You are looking for one sure thing and if it isn't don't play around and gamble with it. To get a big deal you must be patient, disciplined, and have enough money. Again you shouldn't even be thinking about investing in a big deal until you have $100,000 saved. The more distance you have from an investment the longer it takes to get a return, At the beginning of your wealth creation you don't have time to wait on a long return, but at this stage, you can afford to wait for a good return.

This is where we all want to get to. This is the reward for suffering through all that it takes to get here. This stage also takes courage. It is important to get the education and experience you need to be able to determine good investments from the bad. Gaining education and experience takes time, energy, and money. Don't be a victim of analysis paralysis, having the means to act but afraid to do so. There is no way to know when you know enough to make the big investment. You have to trust yourself, have courage, and move forward. It's a good thing you are devoted to improving yourself because no matter how wealthy you become you will always need to improve your education, your experience, and your wealth.

Step 9: Increase Numbers of Income Flows

If you want to get ridiculously wealthy, Increase both your number and the dollar amount of income flows but don't forget the first flows. This is where the biggest players play. To get to their level you have to change the way you think. They're never satisfied and they're always trying to create more flows. Some of you think they are greedy, but these are the people giving out all the money. These are the people building hospitals and bridges and leaving their legacies for generations after they die. If building a legacy is something you want then you must do more than make $1,000,000, you must get super-wealthy to leave a legacy.

Keep your main thing your main thing. Most people build multiple flows of income then abandon the majority of them when they quit their job. On top of losing flows of income, the expenses increase because you have to hire people.  This is why most people move back when they are catching speed. Don't abandon what is working for you. 80% of millionaires work for someone else, meaning only 20% of them went out and made it on their own. You should only be investing in a sure thing.

All your flows should be helping each other to grow because they should be symbiotic. The flow that stops helping other flows will begin to die because of the scarcity thinking that leads to their withdrawal.  A little competition is healthy among flows but they must never lose their corporation.

You have to grow and expand as you get around this circle of steps. You should be looking for surges like in step 8. At this level, you build wealth by building value. You must be doing all this with a purpose or you aren't going to get super-wealthy. this is what keeps you going fighting for more, keeps you hungry, and hunting no matter what you stack away. Are you doing this with a purpose or just going after money?

I assume every entrepreneur has quit more jobs than they would like to admit to in pursuit of becoming a full-time entrepreneur. Even though most businesses fail and most entrepreneurs fail at multiple businesses. If you are following the wealth creation formula, abandoning one of your major income flows is in direct violation. It may be the very reason many small businesses fail because on top of losing a major income flow the expenses go up. Don't quit your job or your major income flows if you are devoted to wealth creation.

It is impossible to get rich without income. Don't worry about the business plan in the beginning focus only on income flows and saving all your money. Review your purchases and only spend money on necessitates. Most invest too early and with too little, continue saving until you have more than $1 million to put on your big deal. Keep and review all your current flows of income consistently and continue expanding them cautiously. Only make investments in yourself, because it gives you a positive return on the investment that you can control.

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Tyrone Bufkin is the founder of Tyrone Bufkin Enterprises and a life and business strategist devoted to helping you develop your entrepreneurial spirt in your career, startup, or small business. Tyrone's teaching and coaching style is transparently honest and inspiring while delivering actionable knowledge.