Transforming your Debt to Wealth

1
Transforming your Debt to Wealth
2
Some Statistics

• 85 of people reaching 65 years of age have less
  than 200 set aside for retirement!
• 70 of all adults under 40 have zero savings.
• The average family is spending 109 of their
  earnings.

3
Three Misconceptions

• Having more things will make me happy
• Having more things will make me more important
• Having more things will make me more secure

4
The major reason for financial bondage?

• Always wanting more!
• The wise man saves for the future but the
  foolish man spends whatever he gets. Proverbs
  2120
• Stupid people spend their money as fast as they
  get it.

5
Five Foundations For Financial Freedom

• 1. Keep good records
• This is the principle of accounting
• What do you owe?
• What do you own?
• What do you earn?
• Where does it all go?

6
Keep good records Where does your money go?

• Credit cards a siphon into your bank account
• Compound Interest
• Mortgage the death grip

7
Five Foundations For Financial Freedom

• 2. Plan your spending
• This is the principle of budgeting
• we are in debt because we spend more than we
  earn.
• A budget is simply planned spending.

8
Five Foundations For Financial Freedom

• 3. Save for the future
• the wise man saves for the future.
• Proverbs 215

9
Five Foundations For Financial Freedom

• 4. Enjoy what you already have
• We confuse our self-worth with our net worth!

10
Five Foundations For Financial Freedom

• 5. Give back
• The 10 10 80 rule

11
The Key Driver

• WE NEED TO FIND A LITTLE EXTRA CASH EACH MONTH TO
  MAKE THIS SYSTEM WORK

12
Ways to save money(and not really notice.)

• Cut up your credit cards and operate 100 in cash
• Dont buy new cars
• Hire less DVDs
• Get rid of your satellite TV
• Stop impulse buying
• Stop the eating out treats

13
Ways to save money(and not really notice.)

• Holidays can be simplified
• Cloths
• Electricity, gas etc.
• Spare coins
• Insurance policies
• Coupons

14
Ways to save money(and not really notice.)

• Recreational shopping
• Coffee
• Wine/beer/cigarettes
• Phones mobiles
• Magazines
• Christmas

15

• A B C D
  E F G
• Item Total Balance Monthly
  Division Pay-Off Margin Months to
• Description Outstanding Payment B/C
  Priority Roll-Up Pay-Off
• 
  
• Mortgage 75000 450
  
• Car 8000 175
• Bank Loan 3400 100
  
• Credit Card 1200 120
  
• H.P. Agreement 1500 30
  
• 250

16

• A B C D
  E F G
• Item Total Balance Monthly
  Division Pay-Off Margin Months to
• Description Outstanding Payment B/C
  Priority Roll-Up Pay-Off
• 
  
• Mortgage 75000 450 167
  
• Car 8000 175 46
• Bank Loan 3400 100 34
  
• Credit Card 1200 120 10
  
• H.P. Agreement 1500 30 50
  
• 250

17

• A B C D
  E F G
• Item Total Balance Monthly
  Division Pay-Off Margin Months to
• Description Outstanding Payment B/C
  Priority Roll-Up Pay-Off
• 
  
• Mortgage 75000 450 167
  5
• Car 8000 175 46
  3
• Bank Loan 3400 100 34
  2
• Credit Card 1200 120 10
  1
• H.P. Agreement 1500 30 50
  4
• 250

18

• A B C D
  E F G
• Item Total Balance Monthly
  Division Pay-Off Margin Months to
• Description Outstanding Payment B/C
  Priority Roll-Up Pay-Off
• 
  
• Mortgage 75000 450 167
  5
• Car 8000 175 46
  3
• Bank Loan 3400 100 34
  2
• Credit Card 1200 120 10
  1 370
• H.P. Agreement 1500 30 50
  4
• 250

19

• A B C D
  E F G
• Item Total Balance Monthly
  Division Pay-Off Margin Months to
• Description Outstanding Payment B/C
  Priority Roll-Up Pay-Off
• 
  
• Mortgage 75000 450 167
  5
• Car 8000 175 46
  3
• Bank Loan 3400 100 34
  2
• Credit Card 1200 120 10
  1 370 4
• H.P. Agreement 1500 30 50
  4
• 250

20

• A B C D
  E F G
• Item Total Balance Monthly
  Division Pay-Off Margin Months to
• Description Outstanding Payment B/C
  Priority Roll-Up Pay-Off
• 
  
• Mortgage 75000 450 167
  5
• Car 8000 175 46
  3
• Bank Loan 3400 100 34
  2 470 7
• Credit Card 1200 120 10
  1 370 4
• H.P. Agreement 1500 30 50
  4
• 250

21

• A B C D
  E F G
• Item Total Balance Monthly
  Division Pay-Off Margin Months to
• Description Outstanding Payment B/C
  Priority Roll-Up Pay-Off
• 
  
• Mortgage 75000 450 167
  5
• Car 8000 175 46 3
  645 12
• Bank Loan 3400 100 34
  2 470 7
• Credit Card 1200 120 10
  1 370 4
• H.P. Agreement 1500 30 50
  4
• 250

22

• A B C D
  E F G
• Item Total Balance Monthly
  Division Pay-Off Margin Months to
• Description Outstanding Payment B/C
  Priority Roll-Up Pay-Off
• 
  
• Mortgage 75000 450 167
  5 1125 66
• Car 8000 175 46 3
  645 12
• Bank Loan 3400 100 34
  2 470 7
• Credit Card 1200 120 10
  1 370 4
• H.P. Agreement 1500 30 50
  4 675 2
• 250

23

• A B C
  D E F G
• Item Total Balance Monthly
  Division Pay-Off Margin Months to
• Description Outstanding Payment B/C
  Priority Roll-Up Pay-Off
• 
  
  
• Mortgage 75000 450
  167 5 1125 66
• Car 8000 175 46
  3 645 12
• Bank Loan 3400 100
  34 2 470 7
• Credit Card 1200
  120 10 1 370 4
• H.P. Agreement 1500 30
  50 4 675 2
• 250
  91months
• 7.5 years

24
10 keys to transforming your debt into wealth

• Define success in terms of what it means to you
• Commit to achieving your goal
• Start now
• Have faith and willingness
• Self responsibility
• Focus
• Be self-motivated
• Persevere
• Have courage
• DO IT!