Mastering Your Mindset Mastering Your Money Focus:

How to Focus on Earning More Income, and Managing & Investing Your Money

with John Assaraf

! 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

What Is Money?

! Your Beliefs And Habits Around $$$ = Your Money Persona

! Your Skills And Knowledge = Your Ability/Efficacy

! Your Ability Plus Your Actions And Resourcefulness = Your Income And Financial Wealth

The Cornerstone of Your Money Story is Your Self Worth and Efficacy

“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

Low Self-Worth

High Efficacy

Low Efficacy

Is Totally Capable Of Achieving The Goals And Success They Want

Do Not Feel They Deserve or Are Worthy of Success

Cannot Achieve High Levels Of Success

Feels They Are Worthy & Deserve Success

The Foundation For Your Decisions: Start With Your End Goals

What Level Do You Want To Play At? Pro

University

HighSchool

GradeSchool

Kindergarten

Pile Theory Stream Theory

Save & Invest Until You Have A Pile Build & Invest For A Consistent Stream Of Income

Setting Your Financial Goals

!  CollegeFundForChild/Children

!  TripOrVaca?on

!  Re?rementFund

!  BuyANewCar

!  PayOffCreditCards

!  LeaveALegacy

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 offerings

! How good are you at selling your product/knowledge/service or expertise compared to others who have the same or similar offerings

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:

" Lead Teams " Inspire Others " Solve Problems Creatively " Think Quickly " Love Sales/Marketing

" Make Dynamic Presentations " Great With Numbers " Understands Systems & Processes " Great Personality " Very Artistic

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 Rent/ Mortgage, Utilities, Debt, etc. Average 50-60% of Take-Home Income

Investments/Retirement Plans •  USA - 401(k), Roth IRA

•  Canada - Tax Free Savings Accounts (TFSA), Registered Retirement Savings Plan (RRSP) 

•  UK - Cash ISA •  Australia - Superannuation Guarantee

Allocate Minimum 10%

Savings •  Long Term Savings (House Down Payment) •  Short Term Savings (Vacation, Gifts, Unexpected

Expenses)

Allocate Minimum 5-10%

Guilt-Free Living Money Dining Out, Movies, Clothes, Shoes, Charity 20-35%

Example: Mary takes home $48,000 U.S. per year ($4,000 a month) after taxes

Fixed Expenses Rent/ Mortgage, Utilities, Debt, etc. (60%) $2,400

Investments/ Retirement Plans 401(k), Roth IRA (10%) $400/month

Savings •  Long Term Savings (House Down Payment) •  Short Term savings (Vacation, Gifts, Unexpected

expenses)

(10%) $400/month

Guilt-Free Spending Money Dining Out, Movies, Clothes, Shoes, Charity (20%) $800/month

Sample Monthly Budget MajorCategories

Variable items can be ramped up as this is conservative

Managing Your Money With Automation On this date… This action happens

2nd Of The Month

•  Part of your income goes into your 401(k)

•  The rest of your income is directly deposited into your checking account

4th Of The Month

•  Automatic transfer from checking to savings account

•  Automatic transfer from checking account into Roth IRA

6th Of The Month

•  Automatic payment of bills form checking and credit card

•  Automatic transfer from checking account to pay off credit card bill

How To Automate

Salary 401k

CheckingAccount

RothIRASavings

CreditCard Misc.Bills

Options For Reducing Debt

!  Pay Off A Few Small Things First To Get Into The Habit Of Doing It

OR

!  Take One Larger Debt And Make Significant And Consistent Efforts To Pay It Off

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 Defined Goals

! Project Cash Flow Needs

! Establish Portfolio

! Access Risk Tolerance

! Strategic Tax Planning

! Create Investment Policy

! Select Investment Asset Classes

! Establish Allocation Model

! Select Investors or Managers

! 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

LifecycleFunds•  LessControl

•  MorePredictableOverLongTerm

IndexFunds/MutualFunds

•  CanBeLowFees(Indexfunds)orHigherFees(manymutualfunds)

•  MoreControlThanLifecycleFunds,LessControlThanStocks/Bonds

•  ReturnsAreFairlyPredictableOverLongTerm

Stocks/Bonds/Cash

•  HighControl

•  StockOfferExtremelyUnpredictableReturnsThatTypicallyFailToBeatTheMarket

•  BondsOfferExtremelyPredictableReturns,ButOnAverageReturnLessThanStocks

Money Management Resources

www.quicken.com

www.mint.com

www.pocketsmith.com

www.moneydance.com

www.acorns.com