10 Steps to Financial Freedom P RESE NTED

10 Steps to Financial Freedom P RESE NTED BY

10 Steps to Financial Freedom Find your net income 01 Calculate your expenses and profit 02 Set a financial goal 03 Create a budget 04 Set a price limit on spontaneous purchases 05 Never finances anything that loses value 06 Shift from credit to cash 07 Roll-down debt reduction 08 09 10 Difference between investment & expense Focus on quality of life and peace of mind

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01 Find Your Net Income • Gross Income: Income before taxes • Net Income: Actual amount of money received after state, federal, social security and other taxes have been taken out. • If-Come: Doesn’t count

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02 Calculate Your Expenses & Profit • Expenses: Anything you spend money on that does not make money for you • Profit: What is left over after you subtract your monthly expenses from the monthly net income • Net Income – Expenses = Profit

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03 Set A Financial Goal • A financial goal is a way of keeping track of how you are doing (just like a scoreboard) • Find a financial mentor or coach • You should set at least 3 types of goals: 1. Short Term – Monthly 2. Mid-Term – 6 Months to 1 Year 3. Long Term – 5 to 10+ Years It is very important to write down your goals and put them where you can read them everyday!

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04 Create A Budget • Budget: A detailed step-by-step plan to help you reach your goals • Track all expenses • Categorize expenses (Mint. com) • Evaluate your spending, then figure out where you can reduce your spending You need to be living on 70 -75% of your net income

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05 Set a Price Limit on Spontaneous Purchases • Set a spending limit on spur-ofthe-moment purchases • Wait at least 24 hours before making a purchase over the limit • Sleep on it!

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06 Never Finance Anything that Loses Value / Switch from Credit to Cash • What Loses Value? • Vehicles • Furniture • Electronics • Practice Delayed Gratification • Wait to buy something until you have enough money to buy it in cash! 07

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08 Roll Down Debt Reduction • Pay yourself first • Make a list of all debts • Arrange debt by lowest balance owed and highest interest rate • Review plan with mentor • Pay off the smallest debt first • Add that payment to the next item’s payment • Repeat the last 2 steps until you’re debt-free! • Gives you confidence as you pay things off 1 by 1

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09 Difference Between Investment & Expense • Investment: • Something you put money into and expect to make more money or gain value from it • Always consult mentor • Expense: • Something you spend money on but expect no gain on

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10 Focus on Quality of Life and Peace of Mind • What does quality of life mean to you? • What is peace of mind? • Be a blessing to others

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The Path to Wealth Accumulation • Budget • Emergency fund • Debt consolidation • Real Estate strategies • College savings • Tax strategies • Life insurance • Investments

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Road Blocks to Financial Freedom • Lack of a Plan • Lost Opportunity Costs • Taxes • Lack of an Exit Strategy • Inflation • Estate Planning • Fees & expenses • Charitable Giving • Volatility • Wills & Trusts • Sequence of Returns

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