7 STEPS TOWARDS YOUR FINANCIAL SUCCESS
Vallo Arumäe ▪ Investing since 1996 ▪ Ownership in 12 companies ▪ 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 ▪ Financially free since 2011
My teachers
I CAN NOT VS
HOW CAN I?
I KNOW VS
I DO
IF I DON’T DO, THEN I DON’T KNOW
CONTENT VS
CONTEXT
QUESTION: Why isn’t everyone financially free when all information is available in internet for free?
CONTENT
HOW TO DO IT? CONTEXT WHY YOU DO IT?
STEP 1: KNOW WHERE YOU ARE
Financial Statement – your "report card" once you leave school. The numbers from the income statement, balance sheet, and monthly cash flow tell the story of where cash is flowing.
STEP 1: KNOW WHERE YOU ARE
Income Statement – A form showing your income and expenses over a period of time
STEP 1: KNOW WHERE YOU ARE
Balance Sheet – A snapshot of your assets and liabilities
STEP 1: KNOW WHERE YOU ARE
Statement of Cash Flow – Cash coming in (as income) and cash going out (as expenses)
STEP 1: KNOW WHERE YOU ARE
STEP 1: KNOW WHERE YOU ARE Action step: Get a clear and up-to-date snapshot of your personal financial statement and find out where you are today financially! Gift: Personal Financial Calculator As you fill in the numbers monthly or quarterly on the Income Statement and Balance Sheet, the spreadsheet will analyze where you are now and will give you direction on what you need to do in order to become financially free.
STEP 2: KNOW WHERE YOU’RE GOING
STEP 2: KNOW WHERE YOU’RE GOING Questions I should ask myself: • What is my dream life? • What do I really, really want? • What is my horizon (hopes, dreams, intentions)?
STEP 2: KNOW WHERE YOU’RE GOING A dream is an inspiring picture of the future that energizes your mind, will and emotions, empowering you to do everything you can to achieve it.
STEP 2: KNOW WHERE YOU’RE GOING
Present
?
Future
STEP 2: KNOW WHERE YOU’RE GOING Action step: Take 30 minutes and write on a paper an inspiring picture of your future where you have no limits on resources available! P.E.R.T. (Program Evaluation and Review Technique)
STEP 3: SET YOUR PASSIVE INCOME GOAL
STEP 3: SET YOUR PASSIVE INCOME GOAL You become financially free by building up your Passive Income to be greater than your Total Expenses
STEP 3: SET YOUR PASSIVE INCOME GOAL 1. Knowing your Total Expenses, please calculate your Passive Income goal
Example: $4000 /month
STEP 3: SET YOUR PASSIVE INCOME GOAL 1. Knowing your Total Expenses, please calculate your Passive Income goal 2. Set the due date for your goal
Example: $4000 /month in 5 years
STEP 3: SET YOUR PASSIVE INCOME GOAL 1. Knowing your Total Expenses, please calculate your Passive Income goal 2. Set the due date for your goal 3. Divide your goal between different assets
Example: $4000 /month in 5 years ($2500 My LLC, $1000 real-estate, $500 dividend stocks)
STEP 3: SET YOUR PASSIVE INCOME GOAL Action step: #1 Set your passive income goal ($/month) #2 What assets will have to be in place to reach your goal? #3 What are the first small steps to start moving towards creating your assets? #4 How will you track tiny signs of progress in moving towards creating your assets on a weekly/monthly basis?
STEP 4: PLAN YOUR RESOURCES
TIME &
MONEY
HOW DO YOU SPEND YOUR TIME?
HOW DO YOU SPEND YOUR TIME?
HOW DO YOU SPEND YOUR TIME? 168 Hours “Fixed Time” Example: ● ● ● ● ● ● ● ● ●
40 hours a week “working for money” 1 hour a day (5 hours per week) commuting 8 hours a day (56 hours per week) sleeping 1 hour a day (5 hours per week) exercising 2 hours a day (14 hours per week) family/kids 2 hours a day meals (14 hours per week) 30 minutes a day getting ready (3.5 hours per week) 15 minutes a day bathroom (1.5 hours per week) 168 hours – 139 hours “Fixed” = 29 hours free time / week
HOW DO YOU SPEND YOUR TIME?
I DON’T HAVE TIME = IT’S NOT MY PRIORITY TIME IS A CHOICE!
HOW DO YOU MANAGE YOUR MONEY?
the JARS Money Management System
STEP 4: PLAN YOUR RESOURCES
Action step: Start planning your time & money towards your passive income goal and using a system to pay yourself first
STEP 5: LEARN
INVESTING IN SELFEDUCATION HAS THE HIGHEST R.O.I.
STEP 6 : APPLY
STEP 6: APPLY
STEP 7: SHARE
THE BEST WAY TO LEARN IS TO TEACH
#5 LEARN #6 APPLY #7 SHARE
KEY STEPS
7 STEPS TO YOUR FINANCIAL SUCCESS # 1 KNOW WHERE YOU ARE # 2 KNOW WHERE YOU’RE GOING # 3 SET YOUR PASSIVE INCOME GOAL # 4 PLAN YOUR RESOURCES # 5 LEARN # 6 APPLY # 7 SHARE
GUIDE TO YOUR FINANCIAL FREEDOM
HELPING PEOPLE TO ACHIEVE FINANCIAL FREEDOM THROUGH BUSINESS AND INVESTING WHILE LIVING A HARMONIOUS LIFE
GUIDE TO YOUR FINANCIAL FREEDOM