The 5 Rules of Wealth | Rules of Money Explained
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Manage episode 297815845 series 2821084
RETIREMENT INCOME
Investing in traditional retirement strategies like a 401(k), IRA and Real Estate leave clients short from the future they have in mind. Our plan focuses on growing your money safely, producing up to 400% increased spendable retirement income.
The Wealth Equation!
A formula so perfect, it can take anyone in any situation, and guide them to prosperity! It's called the Exponential Growth Curve, the formula for achieving Pure Compound Interest!
y=a(1+r)^x
Rule #1 ( a ): Your Investment (Pay Yourself First)
The first Rule of Wealth is PAY YOURSELF FIRST. You come first. You work hard and you are the first person who should benefit from it! Pay Yourself First is a decision you make for which your future self will thank you. In the wealth equation, the first component is (a). This is the amount of money you’re willing to set aside to achieve financial freedom and security. Exponential Growth cannot be achieved without this first step. If what you Pay Yourself First is 0, your wealth equation is 0 every single time. 10% of your income is the recommended starting point.
Rule #2 ( 1 ): Your Commitment (Start Now)
“The best time to plant a tree was 20 years ago. The second best time is now.”
The second Rule of Wealth is START TODAY! You need a starting point to begin. Making the decision to Pay Yourself First, starting right now, is life changing. By starting today, you are beginning your path to Exponential Growth. You are planting a tree that will begin to grow and produce you fruit for the rest of your life.
Rule #3 ( + ): Your Security (Protect Your Money)
The third Rule of Wealth is PROTECT your money! Never lose! Loss and Risk are the enemies to sustainable wealth. Security of your hard-earned money is essential in achieving Exponential Growth. In traditional investing, you hear the phrase “no risk, no reward.” This is where most others fail, because risk is contrary to the wealth equation. In order to achieve the true reward of Exponential Growth, security must be the cornerstone.
Rule #4 ( r ): Your Growth (Compound Interest)
The fourth Rule of Wealth is COMPOUND INTEREST. Einstein called compound interest “the 8th wonder of the world, he who understands it, earns it!” Compound interest is money making money for you, by itself. Money can be a great employee. It will work for you every day, producing wealth for the rest of your life, if you let it. The compounding effect is critical to setting the stage for Exponential Growth.
Rule #5 ( x ): Your Acceleration (Secure Leverage)
The fifth Rule of Wealth is SECURE LEVERAGE. This is the X factor. Traditionally, a good investment will produce sustainable wealth in around 40-60 years. As a result, most people will not enjoy the full benefits of their savings and investments because it takes too long to mature. Leverage tries to speed up the process by using other money or resources to achieve better results, faster, but is traditionally risky. Secure Leverage, however, has security as its cornerstone. Only through this can Exponential Growth and sustainable wealth be achieved in as little as 10 years!
I'm Curtis Ray, Always Be Compounding™!
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