Dan Lok Show

What’s the first thing you do when your paycheck arrives? Do you spend it?

You should treat yourself to something nice. After all, you worked hard and you deserve to reward yourself.

Also, when you got paid, you already achieved the first basic money skill. The first step to creating wealth is to make it, and you did.

Now when I first started in my business I wasn’t very good at making money. I was trying all kinds of business ideas and most of them failed. Over time, I got better because I had learned sales and marketing. I was generating revenue.

So I achieved the first money skill, but I failed at the second. When I was in high school, I had no friends. I was the invisible kid who had just arrived in Canada, so I had no one to talk to. I craved to have people around me and I craved friendship.

As I was making more and more money, I was getting a new car every year. A brand new car every single year and I was going out with my friends, buying them drinks, taking them to dinners. I was buying friendship.

I would even take them on vacations and buy them stuff. In hindsight, they were not real friends. You know what I mean. We would go out and I would drop three thousand on a single night just to entertain them and I myself don’t even drink.

That’s the problem. Entrepreneurs can become really good at generating money through sales, marketing, and getting their product or service out there. But they aren’t very good at keeping their money, which is money skill number two.

So if you’re thinking of spending your paycheck, learn the second money skill before you do so.

After that, money skill number three is what you need to take your wealth to the next level. Click To Tweet

You might get into real estate for your third skill, but there are many options for real estate, and the one you choose depends on your experience with buying and managing properties.

What I see is people getting themselves into four years of debt after investing time and money in their education, and they haven’t even worked on their three money skills. It’s not their fault or yours. These skills aren’t taught in school.

So if you want to be successful financially, learn the three money skills and hone them over time until you become skilled with building wealth.