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Titanium Life Podcast Episode 53: The Titanium 7-Year Rule for Generating Wealth

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I introduce my 7-year rule for generating wealth - an investment strategy I use to make compound interest work in my favor.

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Titanium Life Podcast Episode 53: The Titanium 7-Year Rule for Generating Wealth

  1. 1. Episode 53 • Albert Einstein once said “ Compound interest is the eighth wonder of the world. • He who understands compound interest earns it, and he who doesn't pays it.” • The Titanium 7 Year Rule is a strategy for making compound interest work for you. Business Coaching Inquiries: (844) 884-8264 | titaniumsuccess.com The Titanium 7 Year Rule for Generating Wealth
  2. 2. vV Explaining Compound Interest Through Golf Business Coaching Inquiries: (844) 884-8264 | titaniumsuccess.com Imagine going golfing with a friend and want to make a friendly wager. • One person wants to do $5 a hole for 18 holes. • The other person wants the first hole to be 25 cents. • Each hole would be double the amount of the last hole. At first, it seems like option 2 would be less money. • By the sixth hole, it’s at $8. • By the ninth hole, it’s at $64. • By the 12th hole, it’s at $512. • By the 16th hole, it’s $8,192. • By the 18th hole, it’s $32,768. The total bet for option 2 ends up being over $65,000!
  3. 3. vV Defining the Titanium 7 Year Rule Business Coaching Inquiries: (844) 884-8264 | titaniumsuccess.com • When you’re borrowing money, you are paying compound interest. • We take this type of bet every day with our credit cards. • Putting your money into assets lets you earn compound interest. • The Titanium 7 Year rule is built upon the following assumption: • Any smart investment can generate at least a 10 percent return if one keeps it for at least 7 years. • The rule is if you hold off on buying a liability today, • Then you can have that liability for free in 7 years.
  4. 4. vV Compound Interest Applied to Real Estate Business Coaching Inquiries: (844) 884-8264 | titaniumsuccess.com • Say you finance a $100,000 house with $20,000 down. • That house goes up in value to $110,000 and you sell. • People think that’s a 10 percent return but it’s really a 50 percent return. • Now imagine it grows to $200,000 in value over 8 years. • That’s a 600 percent increase!
  5. 5. vVThe Titanium 7 Year Rule in Action Business Coaching Inquiries: (844) 884-8264 | titaniumsuccess.com • Say you want a new car that costs $100,000. • Instead of making the purchase, you invest this $100,000 into the stock market. • According to the Titanium 7 year rule, you’d have at least $110,000 in 7 years. • You can then buy the car and have money left over. • The same rule applies for items with payment plans. • Hold off on that purchase and invest the monthly payment instead.
  6. 6. vVIt’s Not Just for the Rich Business Coaching Inquiries: (844) 884-8264 | titaniumsuccess.com • You don’t need $100,000 to make the Titanium 7 Year Rule work. • Cut your expenses to free up $100 a month. • If you invest this $100 a month for 7 years, • You would have $8,400. • It would be $100,000 in 30 years.
  7. 7. vV Compound Interest is a Double-Edged Sword Business Coaching Inquiries: (844) 884-8264 | titaniumsuccess.com • Compound Interest can be a destructive force if you have to pay it, • And it can be an amazing wealth building tool if you know how to earn it. • Schedule a business coaching session to become a master of compound interest.
  8. 8. BUSINESS DOWN TO A SCIENCE Listen & subscribe using your favorite podcast app on iTunes, Android or PC: ATruly Life-Changing Force for Business Owners Business | Health | Wealth | Relationships | Happiness Business Coaching Inquiries: (844) 884-8264 | titaniumsuccess.com

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