Below is a scheme I’ve developed based on various seminars I’ve attended and books I’ve read on the topic of financial management, primarily focused around personal wealth building. I’m sharing it with you as I believe it will instill a different way of handling your money and one which shall force you to pursue the path of financial wealth. Use it wisely & drop a comment with any questions/ suggestions:
A couple of tips:
- In the Income Landing zone, your goal is to minimize business taxes (e.g. by paying enough salaries). Talk to your accountant/ legal team for strategies tailored to your cash flow.
- In the Financial Hub zone, you have the power to build wealth. For instance, maximize your tax-free investment accounts, invest in real estate to generate passive income, minimize auto expenses, promote a contingency savings account with at least three months’ worth of net income, etc.
The team you should build around you should contain:
- An accountant, possibly with bookkeeping services if your business transactions tend to get messy
- A banker or bank liaison, so that you foster a great working relationship with your bank
- An insurance agent for all your insurance needs
- An attorney who takes care of your business documents and legal blurb.