1. 10 Steps to Financial Freedom
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2. 10 Steps to Financial Freedom01
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

3. Notes

4. 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

5. Notes

6. Calculate Your Expenses & Profit02
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

7. Notes

8. 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!

9. Notes

10. You need to be living on 70-75% of your net income04
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

11. Notes

12. Set a Price Limit on Spontaneous Purchases05
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!

13. Notes

14. Never Finance Anything that Loses Value / Switch from Credit to Cash06 07
What Loses Value?
Vehicles
Furniture
Electronics
Practice Delayed Gratification
Wait to buy something until you have enough money to buy it in cash!

15. Notes

16. Roll Down Debt Reduction08
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

17. Notes

18. Difference Between Investment & Expense09
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

19. Notes

20. Focus on Quality of Life and Peace of Mind10
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

21. Notes

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

23. Notes

24. 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

25. Notes