How to get wealthy

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This is a PDF file discussing Financial Education. The work of Robert Kiyosaki's book Rich Dad Poor Dad was used to create this "E-Report". Discover: the 3 classes of people, their spending patterns, the power of compounding interest, and the definition of wealth.

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How to get wealthy

  1. 1. How To Get Wealthy By: Demond Johnson
  2. 2. Information resource: Information Resource
  3. 3. 4 Terms you must know when discussing Wealth Are:
  4. 4. Income, Expenses, Assets, and Liabilities.
  5. 5. Term Clarification • Income(I)Money that comes in. • Expenses(E)Money that goes out. • Assets(A)Things that pay you money • Liabilities(L)Things that cost you money.
  6. 6. Next, you will want to learn about three classes of People and their spending Patterns.
  7. 7. THREE CLASSES OF PEOPLE Poor Middle Class Wealthy
  8. 8. What is the Spending Pattern of the Poor?
  9. 9. THE POOR… spend all their income on expenses, and end up broke. INCOME EXPENSES Broke
  10. 10. What is the Spending Pattern of the Middle Class?
  11. 11. THE MIDDLE CLASS… spend income on expenses and ever increasing liabilities which create more expenses. And, They are still broke. INCOME EXPENSES LIABILITIES Still Broke.
  12. 12. What is the Spending Pattern of the Wealthy?
  13. 13. THE WEALTHY… use their income to buy assets, which increase their income. The increased income allows the rich to pay off expenses and liabilities. Once their assets create an income greater than their monthly expenses they are infinitely wealthy. INCOME EXPENSES LIABILITIES Assets 1 2 3
  14. 14. How is compounding used in building wealth?
  15. 15. Keep it Simple Smarty (K.I.S.S.)! Einstein believed that compound interest was the greatest invention of man, and considered it to be the eighth wonder of the world. Everything should be made as simple as possible, but not simpler.
  16. 16. What do you mean Albert?
  17. 17. When Einstein was asked to expound on his statement about compounding he said “Compounding is mankind’s greatest invention because it allows for the reliable systematic accumulation of wealth.”
  18. 18. When we take the income that we earn from Assets and buy more assets we create a compounding effect.
  19. 19. Let’s look at an Example of Compounding: If you had a choice between: Which would YOU choose? $10,000 Dollars Today Or A Penny Compounded For 30 Days
  20. 20. Target 01: $0.01 Target 02: $0.02 Target 03: $0.04 Target 04: $0.08 Target 05: $0.16 Target 06: $0.32 Target 07: $0.64 Target 08: $1.28 Target 09: $2.56 Target 10: $5.12 Target 11: $10.24 Target 12: $20.48 Target 13: $40.96 Target 14: $81.92 Target 15: $163.84 Target 16: $327.68 Target 17: $655.36 Target 18: $1,310.72 Target 19: $2,621.44 Target 20: $5,242.88 Target 21: $10,485.76 Target 22: $20,971.52 Target 23: $41,943.04 Target 24: $83,886.08 Target 25: $167,772.16 Target 26: $335,544.32 Target 27: $671,088.64 Target 28: $1,342,177.28 Target 29: $2,684,354.56 Target 30: $5,368,709.12 If you chose the penny compounded, then you made a far better choice. As you can see you would have received over 5 Million dollars if you chose the penny compounded for 30 days.
  21. 21. Bringing It All Together
  22. 22. Wealth is measured in Time not in money. In other words , Wealth is the number of days that we can maintain our current lifestyle without having to work.
  23. 23. Once We create a monthly Income from Assets that is greater than Our monthly Expenses then We are Infinitely Wealthy.
  24. 24. If you would like to Start Applying the Information you’ve Learned In this Report Click Here.
  25. 25. Thank You for taking the time to view this Report: How To Be Wealthy. BY: Demond Johnson
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