The Three Secret Pillars of Wealth

August 10, 2023

The Three Secret Pillars of Wealth

Hello everyone! My name is Tanisha Souza, and I'm excited to share some valuable insights on wealth building with you. Today, I want to talk about the three secret pillars of wealth that I have personally lived by for nearly 20 years, along with my husband. These pillars have become the foundation of our financial success, and we also teach them to our clients. I highly recommend a book called "The Three Secret Pillars of Wealth" written by my friend James Burns, an esteemed attorney from California. It provides a comprehensive understanding of these pillars and how to leverage them for your financial growth.

Cash Flow

Let's dive into the first pillar: Cash Flow. You may think that cash flow is a well-known concept, but its importance cannot be emphasized enough. Many individuals who aspire to build wealth face a common problem—they lack sufficient cash flow. Without positive cash flow, it becomes challenging to accumulate wealth effectively. Even if you have savings, retirement funds, or tangible assets like a home, they don't guarantee wealth on their own. Cash flow is the true king and must always be prioritized if you want to achieve financial success, whether in business or personal finances.

It's interesting to note that a significant number of people have little to no cash flow. By cash flow, I mean having money left over at the end of each month after paying all expenses. This applies to both W2 employees and business owners. After taxes, bills, mortgages or rent, and utilities are taken care of, they find themselves with nothing or very little remaining. Building wealth under such circumstances seems difficult or even impossible. Therefore, cash flow becomes the number one priority in your wealth-building journey.

If you find yourself thinking, "But I live in an expensive area" or "I don't earn enough money," I encourage you to take a closer look at your spending habits. Develop a spending plan that allows you to make intentional choices about where your money goes. This doesn't mean depriving yourself of enjoyment or necessary expenses. Instead, it's about making informed decisions on how you allocate your funds. If you're struggling with cash flow or want to improve it, I highly recommend exploring resources like "awesome financial hacks" (found at to gain valuable insights and overcome financial challenges. Remember, it's possible to build wealth even with a modest income or substantial debt—I've been in those situations when my husband and I got married. By making strategic adjustments and optimizing cash flow, you can set yourself on the path to financial success.


Moving on to the second pillar: Arbitrage. This may sound like a big, unfamiliar term, but its essence is simple—taking advantage of price differentials. In our investing and financial strategies, we utilize a concept called the "income snowball," which is a patented system and calculator I developed. This system helps individuals achieve financial freedom within an average of 5 to 10 years by generating enough passive income to cover all living expenses. It aligns with the three secret pillars of wealth that I'm sharing with you.

Arbitrage can be best understood through a real-life example. Imagine owning a convenience store where you can purchase a box of Snickers for $10 at Costco and sell it for $20 in your store. This simple transaction demonstrates the power of arbitrage, as your investment doubles by capitalizing on the price difference. While we may not frequently use the term "arbitrage" in everyday conversations, it's a strategy employed by individuals in various domains, including the stock market. Although the stock market version can be more complex, there are simple ways to engage in arbitrage and leverage price differentials for your financial benefit.


Now, let's explore the third pillar: Leverage. This concept, highlighted by James Burns in his book, is crucial to wealth accumulation. Leverage can be intimidating to some, as they perceive it as a risky aspect of investing. While it's true that there are risks associated with leveraging investments, education and guidance from a wealth coach can mitigate those risks. I strongly recommend working with a wealth coach to avoid unnecessary mistakes, as my husband and I made some in our early years without proper guidance.

Interestingly, what's even riskier than leveraging in investing is misusing leverage to acquire liabilities. Many individuals aren't aware that when they purchase a car or a home, they're using leverage in the wrong way. Borrowing to acquire liabilities such as cars or homes results in continuous financial obligations. Unlike the one-time investment in the Snickers example, these liabilities require monthly payments for extended periods, which drain your bank account. Unfortunately, people often overlook the risks associated with these ongoing expenses.

Instead, leverage should be used to purchase assets that generate more income than the cost of leverage. This approach aligns with the concept of arbitrage—buying something for less and receiving more in return. For example, rather than using $10 in cash to buy a single box of Snickers, imagine using your credit card to purchase $40 worth of Snickers from Costco. You can then sell them for $80 in your convenience store. Although it might take longer to sell all the boxes, the profit outweighs the costs. You pay $5 in interest on the credit card, but ultimately, you keep your initial $10 and make an additional $35 from the Snickers sales, even after paying off the credit card debt. This illustrates how leverage can work when smart investments are made.

It's crucial to shift our mindset and think differently about how we can make our money work for us. We often find ourselves trapped in cycles of debt or limited financial growth. However, by applying the three secret pillars of wealth—cash flow, arbitrage, and leverage—we can break free and embrace the mindset of millionaires and billionaires. When interviewed about their wealth-building journeys, successful individuals consistently highlight these pillars as key elements. To harness their power effectively, it's essential to educate ourselves, seek guidance from wealth coaches, and continuously expand our knowledge.

In conclusion, remember these three pillars: Cash Flow, Arbitrage, and Leverage. Embrace them, learn how to use them wisely, and let them guide you toward financial success. I encourage you to explore James Burns' book, "The Three Secret Pillars of Wealth," to gain a deeper understanding of these concepts and discover additional insights to fuel your wealth-building journey. Remember, you have the power to create a prosperous future by implementing these secrets of the wealthy.


Do you prefer video to written posts? Check out our YouTube video on this same topic.

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