NET WORTH MILLIONAIRE PLAN

THE PATH TO INCREASING YOUR NET WORTH AND PEACE OF MIND

Step 1:

Calculate your net worth (Net Worth Analysis): Assets (what you own) – Liabilities (what you owe)

Step 2:

a. Write out your financial goals (your new net worth): 1 month, 3 months, 6 months and 1 year
b. Write out next month’s budget (Simple Monthly Budget)

Step 3:

Save one month of expenses in an emergency fund

Step 4:

Invest up to the company’s match – 401(k)/403(b)

Step 5:

Payoff all debts (excluding your home) – smallest to largest (this builds confidence and hope)

Step 6:

Save 3-8 months of expenses in an emergency fund (months: based on perceived job security)

Step 7:

Invest 15% of income into retirement (including level 4)

Step 8:

Invest into Kid’s College fund (parental choice)

Step 9:

Payoff house

option 1 – invest extra principal payments (higher return and liquidity) until your investment matches your remaining loan payment. Keep paying mortgage and move to Level 10.

option 2 – invest extra principal payments (higher return and liquidity) until your investment matches your remaining loan payment. Payoff your house.

option 3 – add extra principal payments to mortgage (sense of security but low return/not liquid)

Step 10: