Do You Have A Financial Blueprint?
What is a blueprint? The dictionary defines a blueprint as “something that acts as a plan, model, or template.”
So think about it. What is a financial blueprint? It would be a plan, model, or template for your money. When you read the title to this article you may have said “no I don’t have a financial blueprint.” I understand why you’d think that, but I’m going to go ahead and disagree with you. You do have a blueprint, but it is the wrong one. It’s the one you learned from you parents, teachers, and peers. It didn’t create wealth for them and it isn’t going to create wealth for you either.
So what does the ideal blueprint look like?
Well, I’d say that it starts with a decision to pursue wealth. A decision to study and increase your financial knowledge. A decision to go make more money. A decision to keep more of the money you make. And lastly, a decision to multiply the money you’ve kept. It would start with that decision. Ask yourself if you’ve ever really made that decision before. Many haven’t.
Once the decision has been made, you’ve got to actually do something about it. The right thing to do at this point is go make more money. Contrary to popular belief, you don’t start by trimming your expenses. You go sell stuff. What do you sell? It honestly doesn’t matter. As long as it is ethical and legal, it makes no difference. Someone who is hungry enough for their goal is going to make it happen regardless of what it is. You can’t get wealthy on your current income. If you could, it would have happened already.
Once your income is up, you must gain control over your money. This is where the budget comes in. This is where financial management applies. You will want to break your upcoming expenses into a weekly predicted amount and then make sure you always earn more than that number. You also want to review that at the end of the week to see if that really is what you spent. There shouldn’t be too many major differences. At the end of the month and quarter you want to do this as well. A proper blueprint ensures that it is actually being followed. Could you imagine only drawing a blueprint for a house once and then never looking at it again and never going back to check if you’re accurately building the house? You’d never do that. So don’t do it with your money either.
Get really good at saying “no” here. People go broke because they say “yes” too many times to too many things. You need to have tight control over your income. Don’t spend money to be liked or to fit in with your friends. The wealthy say no to almost everything. They don’t spend to look good to others. They don’t spend to avoid feeling left out. They don’t invest in most of the things they are presented. You want to take that income and pressure it into one focused area. Think about water coming from a hose. A hose that has a wide mouth and isn’t focused on anything is not very powerful. But restrict that space and really focus the stream and you can pierce objects with the same water. Saying no allows you to have this kind of focused power with you money.
Earn more income again. Yup! Go back to the income now and keep increasing it. This is why most people fall off. They don’t want to learn to sell and they get bored and distracted. I’ve been in business for almost a decade personally and I didn’t start investing until my 6th or 7th year in business. Why? Because I understood my job was to earn income, not invest during that time. It’s about monetary velocity. If you’re in accumulation mode, $200/mo from a rented apartment unit isn’t going to do anything for you yet. Go sell and make more money.
At this point, you begin saving 40%. That’s right! The top 1% have done this for centuries. Save 40% of your gross (pre-tax) income! Now you’ve heard the phrase “it’s not what you make, it’s what you keep”, right? Well I want to add to that. It’s not what you keep, it’s where you keep it. People save money all the time and never get wealthy. They’re keeping their money in the wrong place. Use a Sacred Account. If you don’t know what that is yet, click here.
Now it is time to handle your credit. Most people don’t know that I help with credit. It’s because I don’t advertise it because I don’t intend to help broke people who have bad financial habits get credit just to financially ruin themselves with it. Credit isn’t bad. It’s actually a must. It’s the financial habits of the individual that are bad or good. If you’re making lots of income, saving lots of money, and controlling your finances then credit is a great idea. If you’re paycheck to paycheck, insolvent, and just looking for a shortcut then credit is the worst possible thing for you. You should have 3 goals here. First, lower your utilizations, then improve your score, then add more free credit lines that you don’t need to use for anything but making money with.
Now it is time to handle legal and tax protection. You are actually worth something at this point, which means you need to protect it. You should have already built your basic estate plan and a basic tax plan. But at this stage we are looking to completely minimize taxes, make your assets untouchable, and setup your legacy. This part is fun because you are fortifying your hard work.
It’s also time to start protecting your assets. I like trusts, bullion, and corporations for this and that’s what we help our clients with at this stage.
Finally, you can begin investing. If you’re worth less than $1 million (your primary residence value doesn’t count), then realize you’re playing in the kiddie pool. You’d be what’s referred to as a non-accredited investor. I can still help you get better investments than Wall Street, but there is another level of investing you need to get to. This level is called The Accredited Investor. This person has a $1 million net worth (outside of their primary residence). At this level, a person actually gains access to investments they aren’t even legally allowed to know about prior. These investments offer greater returns, better security, and are all around going to build wealth faster for you.
The last step of this blueprint is actually to start a Family Office. You see, the wealthy don’t use financial advisors. John D. Rockefeller popularized the term “family office”. What is it? Wealthy people hire on staff, their very own money managers, CPA’s, legal, and other financial staff to work on staff for their Family Office. They own a company and hire employees that come in and help them manage their money. Imagine if your financial advisor was actually your employee. How much more control and trust would you have for that person?
This is an outline of the Wealth DynamX blueprint. This is what I teach my clients to do. We don’t just stick them in a 401k plan in Wall Street and then meet them 1–2 times per year just to read their statement. This is an active, wealth creation blueprint that has been tested by the Top 1%. If you’d like to learn more about how I can help you with this blueprint click here.
Own Your Potential,
Grant Cardone Certified Coach
Jerry Fetta helps his clients gain more financial knowledge, make more money, keep more of it, and multiply what they keep.
If you feel like one or more of these areas is costing you money and opportunity right now, then get more information about Jerry Fetta and Wealth DynamX by going to www.WealthDynamX.com/contact