Wealth Creation Information Introduction Presenter: Martize Smith

Wealth Defined Passive Income that exceeds living expenses Scenario: You quit/stop working your day job and expenses are still payed from income producing assets

Foundations of Wealth Creation 1. Vehicle to produce income/profits (Job, business) 2. Savings 3. Investments

Wealth Creation Approach 1. Decide on the exact amount of money you desire to have in your possession. 2. Make clear what will you give in return for amassing the wealth you are seeking. 3. Determine a clear deadline and definite date for the accomplishment of the wealth you intend to have. 4. Create a definite plan that guides your actions in your pursuit of financial success. 5. Write out a clear specific statement of the amount of money you intend to acquire, name the time limit for its acquisition, state what you intend to give in return for the money, and describe clearly the plan through which you intend to accumulate it. 6. Review your statement at least monthly

Importance of risk tolerance Risk tolerance is critical for building wealth Risk tolerance acts as one of many criteria in choosing investments General rule of thumb (Low risk usually means having a low rate of return on the money you invested vs high risk has potential to make a high return) Consider example: You invest $1000 in two different investments, one is low risk the other is high risk Low risk Investment annually may only have return of 4%, sometimes lower, (1000*0.04)=$40 totaling $1,040 High risk Investment annually may have a return of anything significantly larger than 4% could be 20% or more, same as (1000*0.20)=$200, totaling $1,200

Flow Chart Creative way of visualizing what steps to take in stages leading up to your first investment

Wealth Creation Plan 1. Create a $1200 emergency account 2. Create a super emergency account (8 to 12 months of bills and expenses) 3. Pay off or pay down debts, starting with the smallest and progressing to the largest 4. Once your total debt is reduced by 30% to 70%, began investing in retirement accounts (10- 15% of salary at minimum) while simultaneously paying down remaining debts 5. Begin a higher education fund for your children (If any) while still investing Pay off mortgage, commercial or personal estate, or any such property 6. Aggressively invest, focusing on assets that generate income so that if you ever stop working cash flow continues to occur (Bonus) Consider compound interest investing-is a method of calculating interest whereby interest earned over time is added to the principal.

Work towards Assets Business Ownership Real Estate Paper (Stocks, Bonds, Mutual Funds, etc) Commodities

Conclusion Don’t be intimidated & seek financial security Read more finance books Spend less, save more, invest to grow net worth Focus on increasing passive income streams Enjoy the journey