Work on your Wealth Plan

Step 0: Give to God a monthly love offering (10% is a good guide)

Step 1: Free yourself from all bad debt

Step 2: Increase you income

A. Be the best employee by taking on an entrepreneur's mindset

B. Start a business on the side based on your core skills

• Two types of business to get into that you - which should you choose?

1. Business that you already know
2. Business that you don't know (As silly as this sounds, a lot of people choose b!)

• Other import requirements

1. Get a business mentor and establish a training relationship
2. Sell your core skills
3. Create the right entity for your business (sole proprietorship; corporation; etc.)

* 3 ways of how people earn and spend money:

1. Informal economy: get paid ---> spend money
2. Employees: get paid ---> pay taxes ---> spend money
3. Business owners: get paid ---> spend money ---> pay taxes

Step 3: Get protection (insurance) equal to 10x your annual expenses

A. Term insurance: 10x of annual expenses

B. Others: health insurance, house insurance, car insurance, etc.

Step 4: Create an Emergency Fund

A. Save 20% of your monthly income - and if you have debts, invest 1/3 of your savings to your Emergency Fund. (1/3 goes to your Freedom Fund and another 1/3 to your Wealth Fund). If you have no debts, invest 1/2 of your savings to Emergency Fund and 1/2 of your savings to your Wealth Fund. When you reach your goal for your Emergency Fund, put 100% of your savings to our Wealth Fund.

B. Put this amount in the bank with the goal of having an amount equal to 3 to 6 of your monthly expenses always (always replenish!)

C. Required Financial Habits

1. Savings is your 2nd expenses (1st expense is your tithe)
2. Find a system to make this automatic (very important)
3. Monitor your expenses
4. Maintain a good filing system of all financial documents

Step 5: Create a Wealth Fund

A. Save 20% of your monthly income - and if you have debts, invest 1/3 of your savings to your Emergency Fund. (1/3 goes to your Freedom Fund and another 1/3 to your Wealth Fund). If you have no debts, invest 1/2 of your savings to Emergency Fund and 1/2 of your savings to your Wealth Fund. When you reach your goal for your Emergency Fund, put 100% of your savings to our Wealth Fund.

B. Invest this amount in specific growth funds

Your choices:

• Retail treasury bonds
• Mutual funds (Peso, Dollar, Euro)

1. Bond funds
2. Balanced funds
3. Equity funds

• Stocks (Note: Get financial education before investing here.)
• Real estate investments

Step 6: Create a Passive Income equal or more than your Expenses

A. Earn exponential income
Some businesses are just jobs - they have no exponential income.

B. Invest the income from your Assets to buy more Assets

3 Types of Assets

1. Paper Assets
2. Real Estate
3. Business

This is your wealth cycle

C. Expand your core business, and explore new income streams