Financial Freedom Planner - Part 2

Ok, so when we look at the conventional way of doing things.

And we rely on the financial institutions?to give us the growth.

and we`ve assumed in this case, if it is a 12% growth then we see?that it is basically impossible to be Financially free in 10 Years. In this specific example.

Simply because we are earning?R20k / month in this scenario.

But we need like R57,494.98 on a month-to-month basis. Over the next 10 Years.

So that we can build up this R13,226,070 so it is not going to work.

But luckily there is a better way.

So if we follow the?Wealth Creators Strategy. Now remember the definition of a Wealth Creator is;

The intelligent use of limited resources to go from where you are to where you want to be in the shortest possible time with the least amount of Risk.

So we do not want to take a lot of risks. In fact, we do not want to take any risk?if it is at all possible. Especially financial risk. And secondly, we`ve got only 10 years to make?provision for it.

So let's quickly look at it from this point of view.

So your monthly goals are; R20k because that is what you are earning?at the moment.

If we take that and we multiply that by 12, it is going to give us R240k now there are different ways that we?as Wealth Creators can get to this goal.

For that reason, you`ll see that instead of the yellow, the R20k is in a light green background. The reason for that is, it is simply that if I know how to start a business and how to build that business up to a level 7 business.

Now there are 7 different levels in business. So if I`ve got the competency to take this business to a level 7 and this business is going to give me R20k/ month passive income.

And that passive income is indexed with inflation, then that is all that I need.

That is the first option. The 2nd option is simply to say, ok if I can get R4M in cash somewhere and I invest that at 6%

I`m going to get?R240k / year?and if this can be property as an example.

So the way that we do it?normally. This is to say what is the?Cap rate. Or the yield / or the net rent. That I`m going to receive on a specific property.

So let's assume that is 6% So this simply means that if I?buy a property worth?R4M.

The rent that I`m going to collect on that, or the yield that that property is going to give me will be R240K. And then of course that is the equivalent of R20K / month and I`ve got my goal. Now it sounds easy and it is easy, once you know how to do it.

This is why in the investment curriculum we show you how?simple it actually is, once you got a system. The problem is that normally if we receive R20K/ month we do not have the whole R20K to invest.

Let's assume, that these are variables. That you`ve got R1k/ month to invest.

And what you want is?R4M in today's value?but unfortunately, I do not have the?R4M I`ve only got the R1k/ month.

So if we take the inflation rate, at 9%.

And we say in 10 years' time?when we are Financially Free. How much money must we have?at that point that is the equivalent of R4M in today's value?

We are going to see that it will be?R9,469,454.70 that's what we need. Now we need to go back?and say, ok that's another goal. So if we do not have the R4M or if we do not have a business that is at a level 7 that can give us R20k.

We need in future value?R9,469,454.70

So what kind of growth must we get on?the R1k/ month in order to make sure that?we will have the?R9,469,454.70 and that is going to be 64%

So if we can get a 64% on our R1k / month for the next 10 years.

We will have?R9,469,454.70

We take the?R9,469,454.70 which is the same as R4M in today's value. And we can be in a position where we can be Financially Free. The reason why I`m saying we can be Financially free is that the rent that you receive on your property is under normal circumstances indexed with inflation.

In other words, we are not going to make any more provisions. And I know a lot of you are going to have a problem with the 64%

But where do you get the 64%? At this stage, do not worry about that.

Because in later lessons I`m going to show you where and how easy it is to actually get to the 64% on one condition, remember the previous lesson I said... unless you are?willing to take responsibility to learn how this works then please do not continue with this lesson.

So I make the assumption, that if you listen to me that you have made the commitment?to start and say.. but I am willing to learn to?get to the 64% or 80% or 200%

Depending on your specific situation. There is something else, I like to show before we go on to?the next lesson.

And it is simply this...If you`ve got an R1000 / month at 64% in 1 year's time?you`ll have?R16,219 in cash.

So when we look at the?R9.469.454 it looks like a lot of money. But I do not want you to focus on that, at this stage.

Because all we need to go for is a?64% growth. And to take your R1000 to R16, 219.23 within a year once you understand the Wealth Creators business Curriculum?is really, really not that difficult.

So if we take that over a 2-year term. That is also not a problem. That is also not a problem.

But when we look at the 10 years then to a lot of people it seems almost impossible to get to the?R9,469,454.70.

But it is not.

On condition that you follow the instructions, and you`ve got this as a goal.

And at a later lesson, I`m going to look at the goal-setting. So in the next lesson, what do I want to do... I`m going to give you this spreadsheet so that you can do it in the next exercise with me.

I`m going to put myself in a position where literally I`m 56 years old at the moment?and I want to retire in 4 years' time.

What must I do?

And then I`m going to use this Financial Freedom planner spreadsheet. I`m going to use them as a way?to show you how to actually do my Financial freedom or Retirement planning also for disability planning, and even death planning.

Then afterward we are going to go into, how on earth are we going to get to this growth that we are talking about.

So I`m looking forward to seeing you in the next reading.

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