# TWF Framework

Wealth Builder uses the **True Wealth Formula** (TWF) framework, an established set of money management principles based on the best selling book by Hans Johnson available at [Amazon](https://www.amazon.com/True-Wealth-Formula-Master-Legacy/dp/1544506139/). 

Most understand the concept of **compounding** and **exponential growth** but few realize how to consistently achieve it and are therefore trapped in a terminal cycle of consumption, debt and speculative asset boom & bust cycles to the benefit of multinational banks and corporations.  

We aim to provide a proven path to freedom from these systems of oppression and despair.

## How Wealth Is Created

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#### The key to wealth is to get your money working for you instead of you working for your money.

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In the statement above we have 2 types of income:

1. **Earned Income** (money you work for)
2. **Unearned Income** (money or assets that work for you)

We can now apply mathematical formulas to begin the process of converting our Earned Income into Unearned Income. 

## 3 Common Denominators

Additionally, we've identified 3 common denominators across the most successful wealth builders:

1. They focus on building a base of **cash flow assets**
2. They use **rules based systems** (often [non discretionary](#user-content-fn-1)[^1])
3. They **speculate strategically**

Wealth Builder, using TWF methodology, shows you exactly how to model these traits while converting earned income into unearned income. 

## Core Concepts

* Earned income requires time. Unearned income requires capital.
* Earned income has limited leverage. Unearned income has infinite leverage. 
* True Wealth is created through production not consumption.
* True Wealth is 3 things: Health, Relationships & Resources (usually capital or money)
* True Wealth Formula focuses primarily on mastering Resource (capital) management

The Wealth Builder seeks a balance of **freedom**, **security** and **fulfillment** in life.

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Through a proven process it's possible to achieve all 3.

[^1]: Not subject to ones personal opinion or decision. Mandatory based on a pre determined set of rules or circumstances.