Do you want to set financial goals, but aren’t sure where to start? Perhaps you’re just beginning on your wealth building journey. Maybe you’ve built a good amount of passive income, but feel like you’ve hit a ceiling. How do you know what to do next? This blog will cover what is, in my opinion, the best wealth building strategy.

This tool transformed my wife Becky and I’s life. We went from being in debt to financially free, and from financially free to giving away the majority of our income each year. Keep reading to learn how to use the Triple X Factor to set relevant and attainable financial goals.

But first, 

What is the Best Wealth Building Strategy?

It’s impossible to know where you’re going if you don’t know where you are. The Triple X Factor is a wealth building strategy that provides a 30,000-foot view of the wealth building process. It will help you identify where you are in your wealth building journey. From there, it provides a blueprint that can help you know how to set financial goals.

Here’s what the Triple X Factor looks like:

Don’t let all the lines intimidate you! The Triple X Factor is really quite simple. If you look at the graph, you’ll see that the intersecting lines make three Xs. Each X signifies a key moment on your wealth building journey.

The First X: The First Step to Wealth Building

The First X is created when your income (the black line) exceeds your expenses (the red line.) In other words, you reach the first X when you get out of debt and/or make more than you spend. 

So, how to set financial goals will depend on whether you’re on the left or right side of the first X.

On the left side of the first X, your primary goals should be to get out of debt and create a budget. Making more money than you spend is necessary. Without this step, you won’t have the excess capital you need to build wealth. 

You make it to the right side of the first X when the money you make on a monthly basis exceeds your expenses. Now, you have some money to play with! 

Some good goals to set at the right side of the first X / left side of the second X are:

• Purchasing your first home
• Setting up a Roth IRA 
• Creating a passive income stream(s)
• Ultimately, replacing your earned income with passive income

Creating passive income is critical. One of the components that makes the Triple X Factor the best wealth building strategy is the fact that it emphasizes short-term investments, not just long-term retirement approaches.

Remember, you move from the right side of the first X to the second X by having more passive income than earned income. If your salary is $4000 a month, you’ll need to make $4000 in passive income to reach financial freedom.

To do this, you need to purchase assets that pay you on a monthly, quarterly, or annual basis. 

It’s the difference between having a garden and an orchard. For example, when you harvest vegetables in a garden, you need to replant them every year in order to produce fruit. With an orchard, you can pick apples over and over again without cutting down the tree.

To get to the second X, you’re going to need some apple trees. Invest in assets that will provide income without you having to sell them.

The Second X: Savvy Investor

The Second X is created when your passive income (the green line) exceeds your earned income (the black line.) This is the point of financial freedom. At the Second X, your investments pay you more than your job does. So, if you don’t like your job or sense that it’s time to move on, you can quit! 

Some potential goals to set at the Second X are:

• Get an investment coach to help you reach your potential 
• Apply tax-advantaged strategies to your investments 
• Protect your portfolio with the proper legal structure 
• Quit your job and discern what God is leading you to do next
• Reinvest your passive income into other income-oriented investments such as real estate, dividend paying stocks, or starting a business 
• Acquire more “apple trees” until you have an orchard (enough monthly passive income to give everything above your target living allowance away)

The Third X: Kingdom Builder

The Third X is created when your re-invested passive income (the blue line) exceeds your passive income (the green line). At this X, the purpose of your money is to make a difference. Everything above this X can be given away or re-invested into Kingdom causes.

Of course, you’ve been making a difference with your money at every level of The Triple X. You make a difference when you give tithes and offerings. However, you can make a huge impact in the Kingdom of God when you have more than you need. You can be a Kingdom distributor that funnels resources into areas of need, ministries, christian businesses and nonprofits, and so much more!

Some great goals to set at this level are:

• Determine your target living allowance: how much do you and your family need each month to live? Set a boundary on your spending so that you can give away or invest the remainder into Kingdom causes.
• Dream with God and create a giving strategy. What can you create or give to bless people at the highest level? 
• Aim for convergence: the point where your unique experiences, gifts, and resources converge to fulfill your God-given purpose.
• Create a legacy plan– determine how you will pass on your inheritance to the next generation. Teach beneficiaries about how to build wealth and God’s purpose for money so that they know how to keep wealth when they get it!

So, there you have it– the best wealth building strategy for truly making a difference with your money. What stage are you at in the Triple X Factor? What questions do you have? Let us know in the comments!