Discover how to save more than $100,000 in 15 years or less with this step by step action plan to get your personal finances under control. Learn about saving, investing and budgeting. Learn how to pay down debt and stay out of debt, to increase your money-making efforts. If you've been struggling to earn more money, make the money you have go to work for you. http://amzn.to/1SIpgHz

1. Save Over
$100,000
in 15 Years
or Less
SAVING
SUCCESS
PART 2

2. Strategies: How to Achieve Your
$100,000 Goal
Budgeting & Saving (See Part 1)
Investing
Managing Debt
Minimizing the Effect of Taxes
Protecting Your Wealth and Assets
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We will discuss each of these in turn in this series of presentations. Let’s
look at investing.
Saving Success

3. Investing
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Investing may sound really complicated, but it is a fairly simple
principle. Put your money to work for you earning interest, which
can then ‘compound’ over time.
Invest and get a 10% annualized rate of return, and you will have
$110 at the end of the year. It will be worth $121 at the end of
another year.
Past performance is not a guarantee of future success, but taking
just a few minutes each day to learn more about investments that
can help your money make more money for you and your family can
yield big results.
Saving Success

4. Tips for Investing
 Investing is putting your money to work for you; it
is thinking about the best way to use your money to
make more money.
 The more money you use invest in your lifetime on
(safe) income-producing assets, the wealthier you will
ultimately become.
 The sooner you get started, the harder your money
can work for you, and the longer. A dollar saved at 30
years old earns more than one saved at 50 as you
plan to retire.
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4 Saving Success

5. Things to Consider when Investing
Compound Interest
• Re-invest interest earned
for better financial
results.
• Start early and
consistently re-invest to
guarantee larger returns.
• At least $46,000 of your
$100,000 will be interest
if you invest wisely.
Risk Tolerance
• Tolerate levels of
investment risk based
on age, financial
position and personal
circumstances.
• Be more conservative
with risks if you’re
working with a short
time frame (Eg, 2 years
before
college/retirement)
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6. Things to Consider When Investing
Personality
• Consider if you have the nerve
to take financial risks. What is
YOUR money mindset.
Determine if you are willing to
do research into higher risk-
taking options.
• Determine if you are willing to
do research into higher risk-
taking options.
• Investments that leave you
sleepless at night are likely too
risky.
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6 Saving Success

7. Types of Investments
Bonds
• Lending money to a government or
company
• Fixed-income: you know the interest
earnings up front
• Usually low risk, but low returns (but better
than nothing!)
Stocks
• Give you part ownership in business
• No steady flow of income
• Share prices fluctuate.
• The recent stock market downturn of 2008
wiped 44% off share values. But now the
market has gone up again!
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7 Saving Success

8. Types of Investments
Mutual Funds
• Stocks and/or bonds chosen by a
professional money manager
• Established with a specific investing
strategy in mind, eg, conservative,
aggressive
Alternative
Investment
• Includes Options, Futures, FOREX, Gold &
Real Estate
• More complex and/or have a higher level
of risk
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8 Saving Success

9. Managing Debt
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There is no point in putting money in the bank or a Money Market account or
bonds for 1% to 5% return if you are paying 29% APR on any credit card
balances you might have.
Make it a priority to pay those down FIRST, and put some money aside for
your Emergency Fund. THEN start to think about diverting some of your
monthly savings to investments.
Saving Success

10. Things to Know About Managing Debt
 If the interest on your debt is greater than the likely rate
of return on your investment, then you should be
paying your debt first.
 Most experts quote a figure around 7.5% as a
reasonable expectation for return on a stock.
 Any debt that is charging you more than 7.5% interest
should be paid before any real investing starts.
 Debt is the equivalent of an anti-investment, so get out
of it, and stay out of personal debt. (Business debt is
another matter if it is good debt that can go to work for
you.
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11. Focus on Credit Card Debt
 Eliminate any additional use of your credit
cards.
 Don't close the accounts, since it will
negatively affect your credit score.
 Do whatever you have to do to stop using
them. This could include cutting them up or
locking them away to be held in reserve just in
case of any dire emergency.
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12. 2 Strategies to Clear Credit Card Debt
Start with
highest
interest card
Put most
money on
this one
Pay
minimum
on others
Move on
to card #2
next
Start with
smallest balance
card
Eliminate
number of cards
faster BUT
May not make
best financial
sense
depending on
interest rate
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13. Minimizing the Effect of Taxes
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It isn’t how much you EARN so much as how much you are able to keep.
The taxes you pay, and when you pay them, can be part of your overall
strategy to get ahead financially.
First there are personal taxes.
Then there are business taxes if you own your own business. There are also
issues with respect to being self-employed or setting up a corporation.
Setting up an LLC, C Corp or S Corp can have major tax implications. An
individual is permitted about 75 deductions on their taxes. An LLC can get
about 150, an S Corp can get about 350.
None of us like to think about taxes, but what you do not know CAN hurt
you, or cause you to miss out.
Saving Success

14. Strategies for Minimizing the Effect of
Taxes
Make use of tax-deferred accounts.
Consider taxes when investing, as there are
two tax rates:
• Capital gains tax – same for everyone.
• Marginal tax rate – depends on income.
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15. Planning Investments Around Taxes
 Stocks that are held for more than a year and then
sold are taxed at the capital gains rate.
 All bonds and any stocks that are held for less
than a year are taxed at your marginal tax rate.
 That means that if you have one or more accounts
that are tax-deferred, you should ideally be
holding bonds and short-term stock trades in
those accounts.
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15 Saving Success

16. Protecting Wealth
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Protect your wealth and assets, and they can help protect you and your
family. Cut costs on things that do not generate wealth. Spend on insurance
and other forms of protection of your property and assets. Did you know that
you can even use certain kinds of insurance policies as an investment
vehicle?
Spend 30 minutes to an hour each week on your finances. Don’t just
balance your checkbook and review all of your expenses and receipts. Also
check to see how your investment are doing and spend some time
researching investment opportunities.
There is no guarantee on the stock market, but some investments are safer
than others. Build wealth with each paycheck, rather than spending every
dime.
Saving Success

17. Looking Into Protecting Wealth
 There are several aspects that go into protecting
your assets and your wealth.
 Set up protection from potential legal actions
against you in your business. Open an LLC, for
example. Be sure you have adequate insurance
and the right kinds of insurance.
 Avoid the temptation to spend your wealth when
compound interest could keep it working for you.
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18. Meeting Your Goals
 Saving $10 per day is
$3650 per year.
 At the end of 15 years,
you might think it would
be only $54,750 BUT if
you were able to invest
at a rate of 10% and
allowed the interest to
compound, look how
much it could turn into
in 15 years=
 $115,969.60!!
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Year 1 3650 365
Year 2 7665 766.5
Year 3 12081.5 1208.15
Year 4 16939.65 1693.965
Year 5 22283.62 2228.362
Year 6 28161.98 2816.198
Year 7 34628.17 3462.817
Year 8 41740.99 4174.099
Year 9 49565.09 4956.509
Year 10 58171.6 5817.16
Year 11 67638.76 6763.876
Year 12 78052.64 7805.264
Year 13 89507.9 8950.79
Year 14 102108.7 10210.87
Year 15 115969.6 11596.96
Saving Success

19. Conclusions 1
 Building assets is really just a function of
budgeting/saving, investing, reducing debt,
and then protecting all your assets.
 Eliminate the waste from your financial life,
increase your income slightly, and invest
consistently and you CAN do it!
 Building savings of over $100,000 in 15 years
is well within the capabilities of anyone with
the necessary discipline and willingness to
learn and put in some effort.
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19 Saving Success

20. Conclusions 2
 Avoid get-rich-quick thinking and plan instead for slow
but steady wealth creation.
 ACTION STEPS:
1. Create a computer file My Goals
2. Set a dollar value for your goal, eg, $100k
3. Set a time limit on your goal, eg, 15 years
4. Put down the date
5. Write all your strategies to help you achieve that
goal.
6. Check your progress each month and quarter. If
you’re disciplined, you’ll see your money grow.
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21. Save Over
$100,000
in 15 Years
or Less
SAVING
SUCCESS
PART 2
To learn more, visit:
http://EternalSpiralBooks.com/save