This Wealth Formula Will Set You Free Financially (Use This Mindset Shift!)

The Myth of Multiple Streams of Income

Vaden opens by addressing a common piece of advice that many beginners hear: the need to create multiple streams of income. While this sounds appealing and is often touted as a path to wealth, Vaden calls it “the dumbest thing on the internet” for those just starting out. The problem with chasing numerous revenue streams simultaneously is that it dilutes focus and resources, which ultimately holds people back from achieving meaningful success.

He explains that most people have limited resources—whether time, money, energy, or team—and spreading these thinly across many ventures results in mediocre outcomes. Instead, Vaden advocates for identifying the one primary revenue stream that matters most and committing fully to it. This concentrated effort increases the likelihood of breaking through financial barriers and building a sustainable business.

The Power of Focus: Shehan’s Wall

To illustrate this, Vaden introduces a concept called Shehan’s Wall, named after a colleague. The metaphor describes the challenge of breaking through financial or personal brand growth barriers. If you hit the wall in many places at once, you make little progress. But if you focus all your energy on one spot, eventually you create a crack, then a hole, and finally break through.

This principle applies to money and business growth. Vaden shares the story of Lewis, a client who had 17 revenue streams but was stretched thin and not feeling abundant despite financial success. When Lewis was challenged to go all-in on his podcast—the one thing gaining momentum and requiring less stress—he made the bold decision to walk away from millions in revenue from other ventures. This singular focus led to exponential growth, proving the power of concentrated effort.

The Transition Plan: Short-Term vs. Long-Term Focus

Vaden acknowledges that not everyone can immediately abandon all other income sources. For many, a day job or existing business is the short-term primary revenue stream that pays the bills and provides stability. The key is to clearly identify this primary business model and then build a transition plan toward the long-term vision.

He introduces a framework called the “Golden Grid,” which helps individuals map out their primary business model, secondary business model, and ancillary revenue streams. The goal is to have one clear focus in both the short and long term, with other income sources supporting but not distracting from the main objective. Vaden emphasizes the importance of patience and strategic elimination of distractions over time, rather than abrupt cuts that could jeopardize financial stability.

The 70/30 Rule and Extending Your Runway

A practical guideline Vaden shares is the 70/30 rule for transitioning from a current income source to a new one. Initially, 100% of income comes from the primary source. As the new venture grows, it should reach about 30% of income before making a full leap. This staged approach reduces risk and extends the runway—the time you have to succeed before running out of resources.

Lowering expenses and reducing material desires also lengthen this runway, allowing for greater financial risk-taking. Vaden points out that those with fewer obligations can afford to take bigger risks, while others must be more cautious and deliberate in their transitions.

The Five Ways Personal Brands Make Money

Vaden breaks down the monetization of personal brands into five core categories, which he calls the “paids.” These include physical products, ads and affiliate marketing, digital information products (courses, coaching, memberships), deals (book, TV, licensing), and services (time-for-money exchanges like consulting or coaching). While many people try to juggle multiple categories, Vaden stresses the importance of choosing one primary business model that aligns with your brand and resources.

He also introduces the acronym “DARES” to evaluate business models: Digital, Automated, Recurring, Evergreen, and Scalable. These criteria help determine which revenue streams are sustainable and efficient. For example, digital products that are automated and recurring tend to be more scalable and less stressful than physical products or services that require constant hands-on involvement.

Scaling Services and the Concept of Fractal Math

For service-based professionals like doctors or coaches, Vaden explains that scaling often involves raising prices or training others to deliver the service. He shares an advanced concept called fractal math, which reveals that 10% of customers will invest 10 times more than the average customer. By creating higher-tier offerings that provide more intimacy, speed, execution, or exposure, businesses can dramatically increase revenue without acquiring new customers.

This approach encourages deepening relationships with existing clients through premium services or done-for-you solutions, which can multiply income exponentially. Vaden highlights that scaling is not just about more customers but about increasing the value per customer.

Mindset Shifts: Viewing Money as a Relationship

Throughout the conversation, Vaden emphasizes the importance of mindset in financial success. He encourages listeners to think of money as a person—with whom you have a relationship that requires care, respect, and service. This metaphor helps shift the emotional energy around money from fear or scarcity to abundance and stewardship.

He also references the biblical parable of the talents to illustrate that money is meant to be multiplied and used wisely, not hoarded out of fear. This spiritual perspective reinforces the idea that financial abundance is a natural outcome of serving others and wisely managing resources.

Overcoming Doubt and Staying Encouraged

Vaden addresses the challenge of staying motivated when others doubt your passion or vision. He advises surrounding yourself with encouraging people and mentors who believe in your journey. If necessary, limit conversations about your goals with those who are unsupportive. Ultimately, you must become your own biggest cheerleader and focus on the voices that uplift and inspire you.