An action Plan to overcome the No Money Blues
Hi,
Thinking about how to get what you want out of life?
Don't let life's tremendous opportunities pass you by.
Here the quick outline for an action plan to get you where you wnt to be. It will require a laser focus on real priorities. It also requires consistent, disiplined effort for the duration of the plan. It will take hard work. If you do the work, you'll see results. Consider it a financial workout program and life changing action plan.
What are the benefits?
- Personal Satisfaction
- Increase baseline income to desired levels
- Owning your own property (home, car)
- Owning your own business
- Education and Certification (BA degree, NASD lic, Insurance lic, Real Estate Lic).
High Level Overview
Phase 1: Foundation Building (1-2 yrs)
Time: Nov 2005 - Dec 2006 / May 2007
Focus Areas: Education, Baseline Income
1. Get a "standard" day job with benefits. Target income: $30,000/yr. I'll help you revise and post your resume/coverletter to accomplish this.
Key Benefits: documented income accepatbale to lenders, health care benefits, basic insurance and 401K/Retirement savings plan. Longterm consultant positions also OK.
2. Academic Education: Finish your BA ASAP. Any accredited school is OK. If you are able to get your "day job" there then it's a plus. Try any of the local, state schools or community colleges. Foe example, in NYC check out Berkely aand Audrey Cohen, MCNY. Their programs are focused and "fast" (~2yrs for full BA). With transfered credits you can fininsh in ~1yr. Get serious and finish college!
3. Financial Education: While finishing your degree. Obtain your financial licenses. This will fully prepare you to make "deals". Go in this order:
- Insurance lic. (WFG) ~3mos
- NASD series 6,63 lic (WFG) ~4mos
- Real Estate License (TBD) ~3mos
Each will require additional study and classes. I can help you with the NASD and Ins. I suggest that you complete one license each semester. You will be in the studying mindset and have the momentum to complete each lic as an extra class.
4. Personal/Professional Development: Reading is fundamental. Networking is crucial. You will need to read motivational books tht will also teach you business and finance fundamentals. Read the books to understand the concepts. You'll be able to apply them in a multitude of situations.
Phase 1 will get you on track financially and educationally with the tools you need to compete in today's business environment.
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Phase 2: Start Asset Accumulation (2-3 yrs)
Time: Mar 2006 - Dec 2008
Focus Areas: Accumulate income streams, asset streams
1. Create a real financial plan. Include documented income, cash savings, long term savings, insurance needs. Note: income from WFG and other rel estate broker deals will be "side" income, additional to your documented baseline income.
2. Immediate cash savings for downpayment on first property. This must be done ASAP. Most properties will require 5-10% down + closing costs (est. min 10% of price. i.e. $400K house = min $40K for downpmt and closing).
3. Use documented baseline income to purchase appreciating assets. Purchase your first/primary residence. It would be best if it were a multi-family unit with rental income (2 or 3 family).
4. Use documented baseline income to invest on a monthly basis. Get 2 mutual funds with monthly direct deposit.
5. Insurance & Long Term Investments: Get a VUL as soon as your budget can afford it. (est ~$200/mos) This must be done before 28 yrs old to avoid highe premiums for 30yr old.
Phase 2 will have you financially established within 3-5 yrs. You will have total assests valued near $500,000. Phase 2 is dependent on the progress and completion of Phase 1.
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Phase 3: Re-evaluation & Re-Launch (3-5yrs)
Time: Jan 2009 onward
Focus Areas: Personal Growth, New Projects
1. Review your financial plan and adjust income sources and needs analysis.
2. Focus on the busines projects that generate consistent results: highest cashflow / time / energy ratio.
3. Identify new sources for passive income: build it once / 1 setup = continuous income stream.
There are three goals here:
- Get to > $1 million in assets
- Reduce/eliminate non tax deductable debt
- Replace baseline documented income with business cashflow.
Let's discuss this plan in detail. If you are serious about changing your situation, your life, then let's get started. There's lot's of work to do!
Need more info?
Contact your Tax Pros financial advisor.
Phone: 718-875-0556
posted by Victor Lloyd Smith @ 1:22 PM
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