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FINANCIAL LITERACY
Why are you here?
How do…
Broke
Assets Liabilities
Expenses
10,000
Assets Liabilities
How the Middle Class spend?
How the Middle Class spend?
Expenses 50,000
Assets Liabilities
Car
House
Gadgets
Credit Card
Debt
How the Middle Class spend?
Expenses
Assets Liabilities
• CGO/Business
• Securities
• Real Estate
• Commodities
• Education
Wealth Creation Formula
Inflation
Leverage
Debt
Compound Interest
Rule of 72
Risk-Return Tradeoff
Diversification
Inflation Effect
Risk-Return Tradeoff
Leverage
Diversification
Compound Interest
THE RULE OF 72
Dividing the number 72 by the interest rate of your savings or investments
will give the estimated number of years it will take for your money to double
72 ÷ 4 = 18 72 ÷ 8 = 9 72 ÷ 12 = 6
Money doubles every 18 years Money doubles every 9 years Money doubles every 6 years
16X
“If
you buy things you do not need,
soon you will have to sell things you
need.” –Warren Buffet
Traditional Investment
What is your SAVING Formula?
INCOME - EXPENSES = SAVINGS
100% - 110% = - 10%
PROSPERITY FORMULA
INCOME - TITHES - SAVINGS = EXPENSES
100% - 10% - 20% = 70%
INVESTMENTS
EMERGENCY FUNDS
ELIMINATE DEBTS
PROTECTION
LIFE INSURANCE
HEALTHCARE
SHORT TERM & LONG TERM CARE
INCREASE CASHFLOW
1. Earn additional income 2. Manage expenses