Learning objectives
How to become wealthy. Create and sell. Have few needs
Survey
What is your current net total asset capital in Euros or USD ?
How much did you grow it each year ?
What's your montly burn rate, minimal and comfort ?
What is your objective in term of net monthly salary without one year ?
Questions
1. Define the 12 most important PF ratios that managers check regularly. Exemple: Net asset growth rate
2. Define the 12 most important finance and risk management rules that managers engage. Categorize them in four sections: Revenues, Costs, Assets, Liabilities. Exemples: Never spend more than you earn, Save 10 % of your total income for LT objectives
3. List by order of frequency / impact the six major risks you could face privately and professionally and how you cover them, with for each of them, their risk covering method ( contract, provision or principle)
Clues for answering
Personal costs management
% of net revenues for tax expenses at 30 %
% of revenues for saving
5% for ST objectives (car, holiday, material)
10 % for LT objectives (home, major project retirement)
Costs fix rate
Leasure budget at 10 % of regular revenues
Minimal (60%)-comfort (30%)-luxury (10%)
30 % of revenues for home spendings
Fix costs at 60 % of total costs
Personal revenues management
Growth per year at 10 %
Revenues diversity index
Variability
At least 20 % of revenues for a second source ( sales, second job, capital gains)
Reach a minimum of 5000 euros net per month as soon as possible, and stay there
Safety index at 3 years (education, sickness, job problems)
Provision, insurance, second source
Revenues generated by sales
Personal assets management
Growth rate per year at 5 %. Half by saving, half by interest
Asset balance (Risks, liquity). Half in real estate
Die broke
Increase your financial freedom indexes
Personal liabilities management
Debt levels
Never a debt except for home
Keep cost of debts at minimum
Do not spend more than I earn
Investment levels
10 % in home
5% in personal development and job market value (education, personal equipment, assistance and advises)
Get debts level at saving level
Cover all risks by provision or contract or risk avoiding rules
Become my own insurance company as soon as my assets permits
How to draft your personal finance plan
How to plan the increase of your net incomes by internal or external growth
How to plan the increase of your net assets
How to balance your spendings
How to secure a second source of revenues
