Financial Independence is the Overall Goal of Financial Planning
The objective is to turn Cash Flow into Net Worth over time.
There are two things that make you money:
• You at work
• Your money at work
1. Increase Your Income
2. Decrease Your Spending
• Distinguish between “needs” and “wants.”
Ask yourself, “Do I really need this, or do I just want it?” Learn to tell the difference.
• Unwise Spending
• Reduce Taxes
• Unforseen Loss
— Bad investments
— Unexpected expenses
• Loss of Purchasing Power through Inflation