MANAGING YOUR FINANCES - NeuroGymmembers.myneurogym.com/.../10/ManagingYourFinances.pdf · © 2014 Jim Bunch and The Ultimate Game of Life. All rights reserved. Do not duplicate

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MANAGING YOUR FINANCES

http://www.praxisnow.com

© 2014 Jim Bunch and The Ultimate Game of Life. All rights reserved. Do not duplicate. www.praxisnow.com

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The 3 C’s of Money

Creation

Investing

ManagementCashflow

Cashflow

Cashflow

THE PRINCIPLES HAVEN’T CHANGED



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Top 10 Wealth Habits1. Know the Numbers—Get the Truth2. Save Consistently (Automate It)3. Invest Monthly4. Clear Goals Reviewed Often5. Become Transparent & Talk About Money with

Others6. Eliminate & Simplify7. Delay Gratification8. Live Within Your Means9. Cut Expenses10. Protect What You Have

To put it simply…Invest More…

Spend Less…

Pay Less Interest…

Earn More.



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Know Your Position: The 8 Wealth Profiles



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The 5 Paths to Money1. Earn it2. Inherit It3. Steal It4. Win it5. Print it



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The 10x GameThis is an exercise in which you will see how your income has grown over the years and expanding your beliefs around goals for the future.

� What is your current annual income right now? $________________ Year ____________

� Divide your current annual income by 10: $____________________ Year _____________

� How many years did it take to increase by 10x? _____________________________________

� Back then, did you believe you would be making what your income is now? _________

� What had to change to go from where you were then to where you are now?Example: Mike was trading time for money and doing part-time manual labor while going to school. Now he has graduated and is working full time in his own business as a life coach and speaker.

__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ � Multiply your current annual income by 10: $ ____________________________________

� What would have to change to make 10x achievable?Example: As a life coach still trading time for money, Mike would need to implement a strategy of multiple streams of income with perhaps product sales, group telecoaching, workshops, etc. He would also need to put some teams in place to help him manage his business like having an assistant/staff, other coaches, a wealth team, etc.

__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ � Multiply your current annual income by 2: $ _____________________________________

� What would have to change to make 2x achievable?:Example: Mike would need to increase his coaching practice to perhaps 20 coaching clients paying him $10,000/year and would need an assistant or Virtual Assistant to help manage his practice/clients.

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The Pile Theory

The Stream Theory

THE PRINCIPLES HAVEN’T CHANGED



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P&L GameThe purpose of this exercise is to:

1. Get over your fear of looking at your numbers & see that it doesn’t take more than a few minutes

2. Cut the confusion and know what to look for

3. Know what adjustments are needed on your own documents

Using the Sample P&L on the next page:

1. Spend 1 minute to work on your own. Identify what the P&L tells you about the sample couple. What are the red flags you can see that would cause question with their numbers?

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2. Spend 1 minute to work with another participant. What are the red flags your partner found that you may not have?

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John Sally Doe PersonalProfit Loss

January through April 2007

Jan 07 Feb 07 Mar 07 Apr 07 TOTAL

IncomeInterest IncomeMiscellaneous IncomeSalary-Husband 9,800.00 9,800.00 9,800.00 9,800.00 39,200.00Salary-Wife 4,200.00 4,200.00 2,100.00 6,300.00 16,800.00

Total Income 14,000.00 14,000.00 11,900.00 16,100.00 56,000.00

ExpenseAutomobile

Car Payment 480.00 0.00 960.00 480.00 1,920.00Car Registration 0.00 520.00 0.00 0.00 520.00Gas 6.64 0.00 27.01 0.00 33.65Repairs & Maintenance 0.00 27.00 0.00 0.00 27.00

Total Automobile 486.64 547.00 987.01 480.00 2,500.65

Child ExpensesChildcare/Babysitting 468.00 498.00 0.00 0.00 966.00Clothing 207.93 103.33 3.25 72.34 386.85Miscellaneous Child Expenses 0.00 24.60 85.32 129.29 239.21Toys 0.00 53.11 0.00 0.00 53.11

Total Child Expenses 675.93 679.04 88.57 201.63 1,645.17

Dues & Subscriptions 24.97 0.00 0.00 0.00 24.97Food

Dining Out 203.89 252.66 237.29 250.20 944.04Groceries 557.32 711.45 1,083.50 977.84 3,330.11

Total Food 761.21 964.11 1,320.79 1,228.04 4,274.15

HealthcareDental 6.00 25.00 0.00 0.00 31.00Doctor 756.32 175.30 45.00 100.00 1,076.62Miscellaneous Healthcare 144.00 56.97 10.00 67.60 278.57

Total Healthcare 906.32 257.27 55.00 167.60 1,386.19

HouseholdDecor 259.24 94.67 172.35 33.50 559.76Home Repair/Maintenance 102.98 0.00 0.00 0.00 102.98Household Supplies 235.77 374.61 700.62 200.02 1,511.02Lawncare 65.00 65.00 65.00 65.00 260.00Office Supplies 0.00 53.85 0.00 0.00 53.85Pest Control 0.00 0.00 0.00 93.00 93.00Utilities

Cable TV- 0.00 200.00 250.00 300.00 750.00Gas/Electric 251.95 0.00 250.00 250.00 751.95Phone 0.00 315.10 125.00 100.00 540.10

Total Utilities 251.95 515.10 625.00 650.00 2,042.05

Total Household 914.94 1,103.23 1,562.97 1,041.52 4,622.66

InsuranceHealth 501.00 0.00 0.00 0.00 501.00

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John Sally Doe PersonalProfit Loss

January through April 2007

Jan 07 Feb 07 Mar 07 Apr 07 TOTAL

Life 96.13 0.00 192.26 0.00 288.39Rental Property Insurance 1,078.24 300.00 892.17 0.00 2,270.41

Total Insurance 1,675.37 300.00 1,084.43 0.00 3,059.80

Interest ExpenseLoan Expense 1,525.72 1,567.27 1,494.18 1,644.47 6,231.64Credit Card Interest 200.00 200.00 200.00 200.00 800.00Mortgage 2,572.92 2,572.92 2,572.92 2,572.92 10,291.68Student Loan-Son 450.00 450.00 850.00 2,950.00 4,700.00Student Loan-Daughter 761.35 0.00 0.00 0.00 761.35

Total Interest Expense 5,509.99 4,790.19 5,117.10 7,367.39 22,784.67

Miscellaneous Expense 0.00 0.00 4,441.09 5,223.30 9,664.39Personal Expenses

Clothing 697.81 463.43 456.86 265.66 1,883.76Drycleaning 25.52 38.95 0.00 55.00 119.47Education 19.40 0.00 0.00 0.00 19.40Entertainment 198.51 4,012.62 1.98 8.60 4,221.71Gifts 19.38 0.00 0.00 0.00 19.38Grooming 339.99 91.78 46.11 65.98 543.86

Total Personal Expenses 1,300.61 4,606.78 504.95 395.24 6,807.58

Professional ExpensesAccounting 0.00 150.00 0.00 0.00 150.00Attorney 10,000.00 300.00 0.00 10,000.00 20,300.00

Total Professional Expenses 10,000.00 450.00 0.00 10,000.00 20,450.00

Reimbursable ExpensesDue to Wife 0.00 -85.85 0.00 0.00 -85.85

Total Reimbursable Expenses 0.00 -85.85 0.00 0.00 -85.85

Rental Property ExpensesHOA Fees 0.00 125.00 200.00 101.20 426.20

Total Rental Property Expenses 0.00 125.00 200.00 101.20 426.20

Spending Cash 0.00 100.00 0.00 80.00 180.00Tax Expense 0.00 0.00 0.00 4,486.16 4,486.16Travel & Leisure 300.00 0.00 0.00 0.00 300.00WF CASH ACCOUNT CREDIT OFFSET -5,700.00 -3,600.00 -6,300.00 -2,100.00 -17,700.00

Total Expense 16,855.98 10,236.77 9,061.91 28,672.08 64,826.74

Net Income -2,855.98 3,763.23 2,838.09 -12,572.08 -8,826.74

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Questions to Think About

Now review the sample and use these questions to prompt you in what you find:

1. What inconsistencies did you see month to month (ex. Varying amounts, even vs. odd amounts, etc.)

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2. How many items looked like “guesstimates” where they may not have been using actual numbers?

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3. Did you notice any potential missing expenses based on their other expenses (i.e. car payment, etc.)

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4. Did you notice there was rental property insurance but no rental income?

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5. What habits can you notice about their lifestyle based on their P&L?

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6. How are they investing in themselves (i.e. education)?

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7. What team members are they missing on their wealth team based on their P&L?

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Ultimate Lifestyle Exercise: Make It Real

Determining the Investment Portfolio Needed in Order to Achieve Your Desired Annual Lifetime Income

Using the chart below, determine where each of your goals of Financial Foundation, Financial Abundance, Financial Freedom, and Your Ultimate Lifestyle targets are and write that title in the first column.

My Financial Targets

Investment Portfolio Amount Annual @ 8% Monthly @ 8%

$100,000,000 $8,000,000 $666,667$50,000,000 $4,000,000 $333,333$25,000,000 $2,000,000 $166,667$20,000,000 $1,600,000 $133,333$12,500,000 $1,000,000 $83,333$10,000,000 $800,000 $66,667$8,000,000 $640,000 $53,333$7,000,000 $560,000 $46,667$6,000,000 $480,000 $40,000$5,000,000 $400,000 $33,333$4,000,000 $320,000 $26,667$3,500,000 $280,000 $23,333$3,000,000 $240,000 $20,000$2,500,000 $200,000 $16,667$2,000,000 $160,000 $13,333$1,750,000 $140,000 $11,667$1,500,000 $120,000 $10,000$1,250,000 $100,000 $8,333$1,125,000 $90,000 $7,500$1,000,000 $80,000 $6,667$875,000 $70,000 $5,833$750,000 $60,000 $5,000$625,000 $50,000 $4,167$500,000 $40,000 $3,333$375,000 $30,000 $2,500$250,000 $20,000 $1,677$125,000 $10,000 $833



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WHAT IS MY PLAN TO SIGNIFICANTLY INCREASE MY INCOME IN THE NEXT 12 MONTHS?

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Documents

MANAGING YOUR FINANCES - NeuroGymmembers.myneurogym.com/.../10/ManagingYourFinances.pdf · © 2014 Jim Bunch and The Ultimate Game of Life. All rights reserved. Do not duplicate