Step 1: Protecting Your Circle of Wealth
Recall that your circle of wealth represents all the money you have and will ever have. It consists of your accumulated money, your lifestyle money and your transfered money. Your objective is to conciously manage your lifestyle money, eliminate unnecessary transferred money and increase your accumulated money. These actions performed in concert, act to increase your overall circle of wealth while improving your standard of living.
To accomplish this we have designed a unique 3-step process to wealth creation. The ultimate goal is of course the expansion of your circle of wealth (step 3). But without first eliminating unnecessary wealth transfers, focusing on wealth expansion would be like trying to fill a bucket with water without first plugging the holes. This is why wealth preservation (step 2) must precede wealth expansion (step 3). But before eliminating your wealth transfers, it makes sense to first ensure that your assets and income are protected. After all, if you were to lose your income and your assets, then you would have no wealth to transfer anyway.
Let's begin by taking a closer look at the first step in the wealth creation process. Protecting your circle of wealth means protecting your current wealth, and the source of that wealth. This involves:
1. Protecting Your Assets
To accomplish this we have designed a unique 3-step process to wealth creation. The ultimate goal is of course the expansion of your circle of wealth (step 3). But without first eliminating unnecessary wealth transfers, focusing on wealth expansion would be like trying to fill a bucket with water without first plugging the holes. This is why wealth preservation (step 2) must precede wealth expansion (step 3). But before eliminating your wealth transfers, it makes sense to first ensure that your assets and income are protected. After all, if you were to lose your income and your assets, then you would have no wealth to transfer anyway.
Let's begin by taking a closer look at the first step in the wealth creation process. Protecting your circle of wealth means protecting your current wealth, and the source of that wealth. This involves:
1. Protecting Your Assets
- Property Insurance
- Casulty Insurance
- Health Insurance
- Estate Planning
- Long Term Care Planning
2. Protecting Your Earnings Power
- Disability Insurance
- Life Insurance
3. Protecting Your Earnings Potential
- Life Insurance
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