FIVE STEPS TO FINANCIAL HEALTH
Vallo Arumäe ▪ Investing since 1996 ▪ Financial education since 2008 ▪ Financial independence since 2011 ▪ Portfolio incl.: business, real estate, gold, silver, crypto ▪ Worked as a trainer in financial education with Robert Kiyosaki ▪ Certified coach, speaker and trainer in leadership with John C. Maxwell
HELPING PEOPLE TO ACHIEVE FINANCIAL FREEDOM THROUGH BUSINESS AND INVESTING WHILE LIVING A HARMONIOUS LIFE
LEVELS OF FINANCIAL HEALTH
LEVELS OF FINANCIAL HEALTH LEVEL
MAIN FOCUS
RESERVES
CAPITAL
CASH FLOW
5
GENERATIONAL WEALTH
REPLACED BY CASH FLOW
$1,000,000
GREATER THAN EXPENSES X2 OR MORE
4
CASH FLOW
MORE THAN 12 MONTHS
$100,000
GREATER THAN EXPENSES
3
CAPITAL
6-12 MONTHS
$10,000
FIRST CASH FLOW DEAL DONE
2
RESERVES
2-5 MONTHS
$1,000
1
INCOME
LESS THAN 2 MONTHS
COMFORT VS
FREEDOM
KEY PRINCIPLES ● When determining the level, it is not the amount of income that matters, but IF and HOW MUCH is put aside as reserves every month ● Objectively determining your level is a prerequisite for focusing on the right steps and moving forward ● The key questions can be thought of as a CHECKLIST that you can start deleting one after the other if any of them become resolved
KEY QUESTIONS TO REACH FINANCIAL WELL-BEING
SURVIVAL -> SECURITY KEY QUESTIONS: 1. Budget Management – Do you manage your finances, plan your income and expenses? 2. Growing Reserves - Are you putting a part of money aside every month to increase your reserves? Do you have a system for this? 3. Useful skills and knowledge – Have you identified skills and knowledge that would allow you to start earning more income?
2
RESERVES
2-5 MONTHS
1
INCOME
LESS THAN 2 MONTHS
$1,000
SURVIVAL -> SECURITY KEY QUESTIONS: 4. Additional Income – Do you know ways how you can get additional one-time or regular income (selling something valuable, skills you use for a hobby)? 5. Bigger Value - Do you know how you can create more value to your employer to get higher income?
2
RESERVES
2-5 MONTHS
1
INCOME
LESS THAN 2 MONTHS
$1,000
Questions & Answers
SECURITY -> WELL-BEING KEY QUESTIONS: 1. Bad Debt Eradication – Do you constantly reduce your bad debt and do not take any new liabilities? 2. Increasing Efficient Income - Do you search for more efficient ways to increase your income by spending less time?
3
CAPITAL
6-12 MONTHS
$10,000
2
RESERVES
2-5 MONTHS
$1,000
FIRST CASH FLOW DEAL DONE
SECURITY -> WELL-BEING KEY QUESTIONS: 3. Personal Growth Plan - Have you identified valuable skills that your employer/customers need and have a clear plan how to develop them further? 4. Understanding Different Asset Classes - Do you have clear understanding about different asset classes and know what could be your first cash flow investment?
3
CAPITAL
6-12 MONTHS
$10,000
2
RESERVES
2-5 MONTHS
$1,000
FIRST CASH FLOW DEAL DONE
Questions & Answers
GUIDE TO YOUR FINANCIAL FREEDOM