10 Steps to Financial Freedom Presented by

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

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Find Your Net Income 01 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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Calculate Your Expenses & Profit 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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You need to be living on 70-75% of your net income 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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Set a Price Limit on Spontaneous Purchases 05 Set a Price Limit on Spontaneous Purchases Set a spending limit on spur-of- the-moment purchases Wait at least 24 hours before making a purchase over the limit Sleep on it!

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

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Roll Down Debt Reduction 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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Difference Between Investment & Expense 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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Focus on Quality of Life and Peace of Mind 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 Taxes Inflation Fees & expenses Volatility Sequence of Returns Lost Opportunity Costs Lack of an Exit Strategy Estate Planning Charitable Giving Wills & Trusts

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