Use this tool to find out how much debt you REALLY have. Credit card and loan companies LOVE it when we hide from our monthly statements and blindly send them the minimum payment thinking we’re getting out of debt. You wouldn’t believe how much money we’re wasting by skipping this step! So, first things first. Sit down and figure out how much you owe.
I challenge you now to step up and own your debt.
Choose Your Plan of Attack. You get to breathe easy and be in control as we work together to strategically attack your debt. We’ll show you a new way to look at money and develop a predictable action plan showing you step by step how and when you will become debt free.
Make no mistake, it’s almost impossible to follow our steps without drastically improving your financial health for the rest of your life!
Kickstart Your Debt Repayment. You’re ready to get out of debt, and we can help make that happen.
The first step to getting out of a big hole is to stop digging. I mean this literally — stop creating new debt! This is where we improve on our financial control from Step 1.
Your goal is to stop adding to your debt. We’ll walk you through how to get out of debt FAST with the debt snowball method.
Start Dreaming About the Future! You get to decide how you want to live your life.
Spend your life in debt, and your labor will always belong to someone else. Become debt-free, and you get to call the shots! Few people understand just how free we can feel when we’re no longer beholden to the lenders. We don’t have to live some kind of uber-frugal life to pay off debt, but momentum matters. Keep your eyes on the prize!
4 Steps from Security, Control & Financial Freedom
We Made the Process Simple
4 Steps from Security, Control & Financial Freedom
We Made the Process Simple
Cash (Flow) Really is King!
What is Cash Flow? Cash flow is simply the inflow and outflow of money in our financial world. It seems simple that we must live within out means, right? But if it’s so straightforward that we should spend less than we earn, why is it so difficult, even for some with higher incomes?
Why Cash Flow Matters. It’s not debt that puts us into bankruptcy, it’s our inability to make a payment! Simply put, just like a corporation, we need access to capital. We’ll want to design a system that allows us to make fewer payments when our cash flow is low and higher payments when our cash flow is abundant. This is the reason fixed payments (car loans, mortgages) can be bad if the economy or market turns against us.
Why We Get it Wrong. One of the biggest financial issues we experience is “lifestyle creep” … our tendency to let expenses grow faster than our income. We think we’ll make up for lack of saving today by saving more tomorrow. With this flawed logic, we’re missing out on the power of compound interest.
Traditional Budgeting Sucks! Yes, it’s annoying, and it doesn’t work. How to fix it? In the real world, things happen and they don’t always fit neatly into our budgets. What if we find out our car needs the brakes replaced and it’s going to cost us $400? We just broke our neatly put-together plan. Now what? The remedy? Let’s keep our process simple with “rolling” forecasts. Our tools simply look forward and plan for the dollars that will come in to us in the future.
Let’s first expect the unexpected! We never know what the future holds, so it’s best to be prepared. Having an emergency fund is extremely important so we’re always prepared to deal with what life brings. We just need the right goals and a plan.
We really can feel in control of our money! Intentional, disciplined use of our cash flow is the most important thing we can do to stay financially healthy. With automation of your “Freedom account,” you’re progressing each and every month! No longer will you be saying “I’ll save when….”
Bonus! When our financial lives become more black and white, we’ll have fewer financial disagreements with our spouse. With a system in place, financial stress is significantly reduced!
Get Out of Debt & Create Wealth
Danger signals that can indicate financial problems ahead: Are you continually late in making your payments? Are you near the limits of your credit cards? Do you make minimum payments on credit card balances? Do you find it difficult to save? Do you have to use savings to pay current bills? Are you using a credit card because you don’t have enough cash? Have you been denied credit? Do you use a credit line or a cash advance from one credit card to make payments on another?
The Truth About Debt. If you’re like nearly every American, then you’re in debt! This means a portion of every single dollar we earn belongs to someone else. The more debt we have, the more our money belongs to someone else. So, I ask you: Who’s future are you financing?
Debt is Costly. Many of us set goals like we’ll “save more” or “pay off debt” yet we have no specific action plan. We fall into the rut of living paycheck to paycheck. We pay only minimum payments on loans. Inaction can be costly — pretending to have debt under control will only cost us more interest.
The Truth About Mortgages. Just look at any mortgage amortization schedule and you’ll see that almost the entire amount of your mortgage payment is interest the first month. Then, it gradually declines over 30 years. However, statistics show we end up buying a new home, moving or refinancing before the 30 years are up. As a result, we are constantly stuck in the worst years of a mortgage where over 80% of our payments go to pay interest.
Prioritize Repayment. How we manage money could have a big impact on how our retirement dreams play out! Step 2 looks at the first major step toward reaching financial freedom by balancing debt repayment with savings goals. The absence of any kind of liquid savings forces us to rely on debt any time there is a cash shortage. Don’t let this happen!
High-interest debt can grow so fast it will overwhelm our other savings and investments! For most of us, eliminating high-interest debt is by far the best investment opportunity we’ll ever receive! Think of it. The average credit card interest rate now sits around 16% (store cards as high as 29%). This is the return we can receive when we pay down this debt. No other investment reliably returns anything close to that! Wouldn’t you agree?
How it Works. Debt gets tricky when you have several different debts to pay off. If you have a student loan, car loan or multiple credit cards all demanding repayment, putting a tiny bit of extra cash toward each one won’t get any of them paid off quickly. Want to make a real dent in your debt? We’ll walk you through the the debt snowball and debt avalanche methods. They just work!
Don’t forget. Whether it’s debt repayment, saving up an emergency fund, or stashing cash for retirement, every penny you can put toward your goal helps – so no matter what you decide, get busy!
Reduce Your Tax Liability
It’s not what you make, but what you keep. We love to get big tax refunds – it’s like found money, right? No! The reality is, if you get a big tax refund, you’ve just given the government an interest-free loan! All this while we’re suffering the consequences of paying sky high credit card interest.
There are 3 problems with the way we save for retirement in a 401(k), 403b, IRA or SEP: Income taxes, investment losses and management fees. And, together, they can reduce our retirement income by at least 30% or 40%! But they are all avoidable. How? With Internal Revenue Code sections 101 and 7702. These two provisions of the tax code allow our money to grow without taxation – and, all without investment losses or management fees.
The cost of deferred taxation. Many advisors suggest that we maximize our contributions to qualified plans that defer our taxes. They assume we will be making less money during retirement and we’ll be in a lower tax bracket. But, is that a reasonable assumption?
Do you think taxes will be higher or lower in the future? I don’t have a crystal ball but it would not surprise me if taxes went up in the future. Why? Think about our current deficit, under-funding of Social Security, and longevity of today’s retirees. The reality is, deferring taxes is just a roll of the dice. Deferring is just postponing. If you can’t plan for many decades ahead, tax deferral is of limited value to you.
Taxes await us in our “Golden Years.” We’ve worked hard, saved and invested. It’s official. We’re retired! We’ve made it through the “first half” of the game. Now, we’re moving into the “second half” where we begin withdrawing our hard earned savings. It’s a HUGE misconception that retirees are off the hook when it comes to paying taxes. The IRS will get their “fair share” of taxes, but not more than that, if we are smart.
We forget to plan for Social Security taxes. Ever heard of a thing called provisional income? Provisional income is what the IRS uses to determine whether or not our social security benefits will be taxed. Yes, Social Security benefits can be taxable!
Is your 401(k) loaded with hidden expenses? If you are saving money for retirement in a tax-deferred 401(k) or IRA invested in mutual funds or any sort of “managed” account, discover the real cost of market risk and investment expenses. Even a small brokerage fee will add up over time. A few investment fees together can significantly reduce your return. If you’re account is up 6% for the year but you pay 2% in fees and expenses, you’re return is only 4%. Over time, that difference really adds up! Consider what happens when the market drops 20%. Yes, you will still pay fees.
Make Money While Sleeping Soundly
Did you know that the answer to maximizing your investment returns isn’t to invest more money or to take on more risk to get a better return? Even though it’s what most advisors will talk about, it’s NOT the rate of return that is going to create wealth.
Is it really possible to become wealthy outside of Wall Street? It depends. It’s not for everyone. Some people are addicted to the ups and downs of the market. And, believe it or not, they can’t understand how their money can safely grow each and every day regardless of the economy, market or latest bad news on TV. If that’s you, sorry – our program is designed for someone who wants some security and peace of mind in their financial future.
Becoming wealthy beyond Wall Street means we’ve started on a low-risk path that will keep our money safely growing over time – guaranteed! The dream of becoming a millionaire is not out of reach. In fact, the blueprint is sitting in your hands right now!
Why it’s important to start saving now. Have you ever wished that you could have more money without all the effort? Are you concerned you won’t have enough saved for retirement or your child’s education? Luckily, there’s actually a simple way to accomplish all these things, if you’re willing to learn to put your money to work for you. It’s called compound interest, and it can help you exponentially grow your wealth!
Is it too late for me? No way! If you want to easily accumulate wealth, it’s important to start early and be consistent. But, no matter our age, many of the concepts embraced can be used to grow and safeguard our money.
Our greatest risk. We only have one working career – one shot at building our retirement savings. We don’t get a “do-over.” So, we need to make the most of the time we do have. The end goal of getting out of debt and saving money is a secure retirement that meets our needs.
Are we a good influence on our kids? Remember, our children’s financial habits are shaped by ours. Kids who grow up to be good “savers” will say their parents taught them about money. Let’s talk with our kids about how and why saving for retirement is a priority. They should know, by taking action now to provide for OUR retirement, WE will avoid burdening THEM with OUR financial needs in the future.
Want a glimpse of what’s possible? We offer a new tool that will either inspire you or surprise you, depending on your perspective and situation. It’s called My Freedom Date and it allows you to find the point in which you can become debt free.