Mastering Your Mindset Mastering Your Money Focus: How to Focus on Earning More Income, and Managing & Investing Your Money with John Assaraf
What Is Money? � Money Is A VERY Powerful Idea � Money Is A Means Of Exchange � Money Is Abundant � Money Is A Tool/Resource � Money Gives You Options & Choices � Money Is Energy
The Cornerstone of Your Money Story is Your Self Worth and E ffi cacy � Your Beliefs And Habits Around $$$ = Your Money Persona � Your Skills And Knowledge = Your Ability/E ffi cacy � Your Ability Plus Your Actions And Resourcefulness = Your Income And Financial Wealth “You must begin immediately to put value on yourself or others will not. If you don’t value yourself, money will never be attracted to you in abundance. You will repel it as fast as you can imagine or earn it.”
High Self-Worth High E ffi cacy Is Totally Capable Of Achieving Feels They Are Worthy The Goals And Success They Want & Deserve Success Do Not Feel They Deserve or Are Cannot Achieve High Worthy of Success Levels Of Success Low Self-Worth Low E ffi cacy
The Foundation For Your Decisions: Start With Your End Goals
What Level Do You Want To Play At? Pro University High School Grade School Kindergarten
Pile Theory Stream Theory Build & Invest For A Consistent Save & Invest Until You Have A Pile Stream Of Income
Setting Your Financial Goals � College Fund For Child/Children � Trip Or Vaca?on � Re?rement Fund � Buy A New Car � Pay Off Credit Cards � Leave A Legacy
What Do Most People Worry About? � How Do I Earn Enough Now and For My Retirement? � Will I Have Enough To Retire? � Am I Properly Invested? � Could I Be Paying Less Taxes? � Who Can I Trust To Help Me? � Am I Doing The Best I Can With What I Have?
Your Money Focus Earn Manage Invest
How to Focus on Income Generating Activities Earn Manage Invest
The Laws of Earning Money � Is there a need in the market place for your knowledge, product, service or expertise � How good is your product/knowledge/service or expertise compared to others who have the same or similar o ff erings � How good are you at selling your product/knowledge/ service or expertise compared to others who have the same or similar o ff erings
The Laws of Earning Money Bonus Thoughts: What is your skill level at investing in the stock market, � gold, bonds, real estate, oil, coins, furs, diamonds, etc.? What is your skill level at growing a business? �
The 3 Scenarios � As an Employee/Job � As a Business Owner � Investor
Choosing a Path Based on Your Skills & Passion
Your Formula 3 Factors: � Passion / Enthusiasm � The Skill You Already Have or Want to Acquire � Your Commitment Level: � Are You Interested or Committed? � What Level Do You Want To Play At?
Passions, Knowledge & Skills � What Are Your Passions? � What Do You Love To Do? � What Comes Easily And Is Fun For You? � What Skills Do You Have? � What Specialized Knowledge Do You Have? � What Must You Do To Upgrade Your Skills? � What Is The Ultimate Career Path For You?
Create a List of YOUR Unique Abilities. Example: Make Dynamic Presentations Lead Teams � � Great With Numbers Inspire Others � � Understands Systems & Processes Solve Problems Creatively � � Great Personality Think Quickly � � Very Artistic Love Sales/Marketing � �
What Are Options To Earn Money? � Negotiate A Raise � Find A Higher Paying Job � Invest In Stock/Money/Commodities Market � Investing In Real Estate/Mortgages/Debt, etc. � Investing In Business Opportunities � Start/Grow A Business � Choose A Path Based On Your Skills & Passion….
How to Make Smarter Decisions & Simple Money Management Techniques Earn Manage Invest
You Must Know Your Numbers And Understand Your True North
Create Your Deliberate Saving, Spending and Investing Plan Fixed Expenses Average 50-60% of Take-Home Income Rent/ Mortgage, Utilities, Debt, etc. Investments/Retirement Plans • USA - 401(k), Roth IRA • Canada - Tax Free Savings Accounts (TFSA), Allocate Minimum 10% Registered Retirement Savings Plan (RRSP) • UK - Cash ISA • Australia - Superannuation Guarantee Savings • Long Term Savings (House Down Payment) Allocate Minimum 5-10% • Short Term Savings (Vacation, Gifts, Unexpected Expenses) Guilt-Free Living Money 20-35% Dining Out, Movies, Clothes, Shoes, Charity
Example: Mary takes home $48,000 U.S. per year ($4,000 a month) after taxes Fixed Expenses (60%) $2,400 Rent/ Mortgage, Utilities, Debt, etc. Investments/ Retirement Plans (10%) $400/month 401(k), Roth IRA Savings • Long Term Savings (House Down Payment) (10%) $400/month • Short Term savings (Vacation, Gifts, Unexpected expenses) Guilt-Free Spending Money (20%) $800/month Dining Out, Movies, Clothes, Shoes, Charity
Sample Monthly Budget Major Categories Variable items can be ramped up as this is conservative
Managing Your Money With Automation On this date… This action happens • Part of your income goes into your 401(k) 2 nd Of The Month • The rest of your income is directly deposited into your checking account • Automatic transfer from checking to savings account 4 th Of The Month • Automatic transfer from checking account into Roth IRA • Automatic payment of bills form checking and credit card 6 th Of The Month • Automatic transfer from checking account to pay o ff credit card bill
How To Automate 401k Salary Checking Savings Roth IRA Account Credit Card Misc. Bills
Options For Reducing Debt � Pay O ff A Few Small Things First To Get Into The Habit Of Doing It OR � Take One Larger Debt And Make Signi fi cant And Consistent E ff orts To Pay It O ff
Retirement Thinking And Planning � What Will The Cost Of Living Be When You Retire? � What Is The Lifestyle You Want To Live? � How Much Do You Need To Have In Savings | Investments | Cash Flow?
Will You Have Enough to Retire Smart? Earn Manage Invest
Proper Investment And Asset Management Thinking: � Set Clearly De fi ned Goals � Create Investment Policy � Project Cash Flow Needs � Select Investment Asset Classes � Establish Portfolio � Establish Allocation Model � Access Risk Tolerance � Select Investors or Managers � Strategic Tax Planning � Monitor, Rebalance and Adjust
Goal Setting For Investing and Preserving Wealth � Are You Saving For You Or For You & Immediate Family? � Are You Investing For the Short Or Long Term? � Are You Saving For Future Generations? � Do You Want To Leave A Legacy?
5 Things To Consider
Choose Which Investment Opportunities To Match Your End Goals � Stock Market? � Business Investments? � Real Estate Investments? � Collectables?
Investment Options – Create Diversity • Less Control Lifecycle Funds • More Predictable Over Long Term • Can Be Low Fees (Index funds) or Higher Fees (many mutual funds) Index Funds / Mutual Funds • More Control Than Lifecycle Funds, Less Control Than Stocks / Bonds • Returns Are Fairly Predictable Over Long Term • High Control • Stock Offer Extremely Unpredictable Returns That Stocks / Bonds / Cash Typically Fail To Beat The Market • Bonds Offer Extremely Predictable Returns , But On Average Return Less Than Stocks
Money Management Resources www.quicken.com www.mint.com www.pocketsmith.com www.moneydance.com www.acorns.com
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