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Wealth Series -

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WealthCreation Information
IntroductionPresenter:Martize Smith
Wealth Defined
Passive Income that exceeds living expensesScenario: You quit/stop working your day job and expenses are still payed from income producing assets
Foundations of Wealth Creation
1.Vehicle to produce income/profits(Job, business)2. Savings3. Investments
Wealth Creation Approach
1.Decide on the exact amount of money you desire to have in your possession.2. Makeclear what will you give in return for amassing the wealth you are seeking.3. Determinea clear deadline and definite date for the accomplishment of the wealth you intend to have.4. Createa definite plan that guides your actions in your pursuit of financial success.5. Writeout a clear specific statement of the amount of money you intend to acquire, name the time limit for its acquisition, state what you intend to give in return for the money, and describe clearly the plan through which you intend to accumulate it.6. Review your statement at least monthly
Importance of risk tolerance
Risk tolerance is critical for building wealthRisk tolerance acts as one of many criteria in choosing investmentsGeneral rule of thumb (Low risk usually means having a low rate of return on the money you invested vs high risk has potential to make a high return)Consider example: You invest $1000 in two different investments, one is low risk the other is high riskLow risk Investment annually may only have return of 4%, sometimes lower, (1000*0.04)=$40 totaling $1,040High risk Investment annually may have a return of anything significantly larger than 4% could be 20% or more, same as (1000*0.20)=$200, totaling $1,200
Flow Chart
Creative way of visualizing what steps to take in stages leading up to your first investment
Wealth Creation Plan
1. Create a $1200 emergency account2. Create a super emergency account (8 to 12 months of bills and expenses)3. Pay off or pay down debts, starting with the smallest and progressing to the largest4. Once your total debt is reduced by 30% to 70%, began investing in retirement accounts (10- 15% of salary at minimum) while simultaneously paying down remaining debts5. Begin a higher education fund for your children (If any) while still investing Pay off mortgage, commercial or personal estate, or any such property6. Aggressively invest, focusing on assets that generate income so that if you ever stop working cash flow continues to occur(Bonus) Consider compound interest investing-is a method of calculating interest whereby interest earned over time is added to the principal.
Work towards Assets
Business OwnershipReal EstatePaper (Stocks, Bonds, Mutual Funds,etc)Commodities
Don’t be intimidated & seek financial securityRead more finance booksSpend less, save more, invest to grow net worthFocus on increasing passive income streamsEnjoy the journey





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Wealth Series -