10 steps to financial freedom -...

10 Steps to Financial Freedom

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10 Steps to Financial Freedom 01 Findyournetincome

02 Calculateyourexpensesandprofit

03 Setafinancialgoal

04 Createabudget

05 Setapricelimitonspontaneouspurchases

06 Neverfinancesanythingthatlosesvalue

07 Shi;fromcredittocash

08 Roll-downdebtreduc@on

09 Differencebetweeninvestment&expense

10 Focusonqualityoflifeandpeaceofmind

Notes

Find Your Net Income 01

• GrossIncome:Incomebeforetaxes

• NetIncome:Actualamountofmoneyreceiveda;erstate,federal,socialsecurityandothertaxeshavebeentakenout.

•  If-Come:Doesn’tcount

Notes

Calculate Your Expenses & Profit 02

• Expenses:Anythingyouspendmoneyonthatdoesnotmakemoneyforyou

• Profit:Whatisle;overa;eryousubtractyourmonthlyexpensesfromthemonthlynetincome

• NetIncome–Expenses=Profit

Notes

• Afinancialgoalisawayofkeepingtrackofhowyouaredoing(justlikeascoreboard)

• Findafinancialmentororcoach

• Youshouldsetatleast3typesofgoals:1.ShortTerm–Monthly2.Mid-Term–6Monthsto1Year3.LongTerm–5to10+Years

Set A Financial Goal 03

Itisveryimportanttowritedownyourgoalsandputthemwhereyoucanreadthemeveryday!

Notes

• Budget:Adetailedstep-by-stepplantohelpyoureachyourgoals

• Trackallexpenses• Categorizeexpenses(Mint.com)

• Evaluateyourspending,thenfigureoutwhereyoucanreduceyourspending

You need to be living on 70-75% of your net income

Create A Budget 04

Notes

• Setaspendinglimitonspur-of-the-momentpurchases

• Waitatleast24hoursbeforemakingapurchaseoverthelimit

• Sleeponit!

Set a Price Limit on Spontaneous Purchases 05

Notes

Never Finance Anything that Loses Value / Switch from Credit to Cash

• WhatLosesValue?• Vehicles• Furniture• Electronics

• PracRceDelayedGraRficaRon• Waittobuysomethingun@lyouhaveenoughmoneytobuyitincash!

06 07

Notes

• Payyourselffirst• Makealistofalldebts• Arrangedebtbylowestbalanceowedandhighestinterestrate

• Reviewplanwithmentor• Payoffthesmallestdebtfirst• Addthatpaymenttothenextitem’spayment• Repeatthelast2stepsun@lyou’redebt-free!• Givesyouconfidenceasyoupaythingsoff1by1

Roll Down Debt Reduction 08

Notes

• Investment:• Somethingyouputmoneyintoandexpecttomakemoremoneyorgainvaluefromit

• Alwaysconsultmentor

• Expense:• Somethingyouspendmoneyonbutexpectnogainon

Difference Between Investment & Expense 09

Notes

• Whatdoesqualityoflifemeantoyou?

• Whatispeaceofmind?

• Beablessingtoothers

Focus on Quality of Life and Peace of Mind 10

Notes

The Path to Wealth Accumulation

• Budget• Emergencyfund• Debtconsolida@on• RealEstatestrategies• Collegesavings• Taxstrategies• Lifeinsurance• Investments

Notes

Road Blocks to Financial Freedom

• LackofaPlan• Taxes•  Infla@on• Fees&expenses• Vola@lity• SequenceofReturns

• LostOpportunityCosts• LackofanExitStrategy• EstatePlanning• CharitableGiving• Wills&Trusts

Notes