5 Money Lesson to Escape the Rat Race
1. Budget Like A Boss
A Budget Boss is someone who can identify ways of reducing expenses and maximizing their wealth building assets.
INCOME —————————————————————–
BAD BUDGET | Needs 50% / Wants 45% / Debt 20%
GOOD BUDGET | Needs 50% / Wants 30% / Investing 20%
BUDGET BOSS | Needs 45% / Wants 15% / Investing 40%
2. The Cashflow Quadrant
+———————-+———————-+
| (E) | (B) |
| Employee | Business Owner |
| Paid for your | People make you |
| time (no leverage) | money (leverage) |
+———————-+———————–+
| (S) | (I) |
| Self Employed | Investor |
| Paid for your | Money makes you |
| time (no leverage) | money (compounding)|
+———————-+———————–+
3. 7 Income Streams of Wealth
The average millionaire has 7 streams of income.
1. Capital Gains – Buying and selling stocks at a profit
2. Interest Income – HYSA and Lending Money.
3. Royalties – Music, books, pictures, etc
4. Dividends – buying dividend paying assets
5. Earned Income – working a job
6. Profit Income – flipping and e-commerce.
7. Rental Income – income from renting out property
4. Anyone Can Built Wealth
Tracey Dexter
Teacher: $57,700/annum Physician: $208,000/annum
Monthly Investing Amount: $500 $1,500
Starting Age: 22 35
Balance at age 65: $3,909,844.5612 $3,256,981.65
5. Return on investments
Formula
Price Sold – Price Paid
————————————— x 100 = return on investment
Price Paid
Example
$550 – $150
————————————— x 100 = 266.67%
$150