The Secret of Wealth Creation

Unlike debt, wealth is a key component in the game of survival. It greatly influences dreams, education, relationships and living conditions. It dictates the quality of our lives.

Wealth is not based on luck – most of those that have it have earned it.

Rule 1 - You must first decide there is something there to learn

“Most Americans, especially baby boomers, are just “whistling past the graveyard” when it comes to knowing what to do about their overwhelming debt (including mortgages) with little or no savings for their future security.

What most of us have learned about handling finances hasn't been working. You have to decide to make a little effort to re-educate yourself.” - Gary Knutson, CEO Prosperity Financial Services Group

The Role of Discretionary (Surplus) Income

Rule 2 – Discretionary Income is required to build wealth

Income is really of secondary concern when it comes to building wealth. You can earn a lot of money and still fall short of your financial goals.

Many people believe that they have no surplus income left over at the end of each month. The Prosperity Generator (our sophisticated on-line math engine and financial strategy generator) actually locates and frees up trapped discretionary income.

Rule 3 - Debt robs you of Discretionary Income and acts as a major deterrent to
              your wealth building activities.

Debt and interest payments, along with unplanned spending typically consume 40% to 50% of all net household income – money that could be used to accelerate your wealth accumulation.

CHART - Mortgages – Equity vs. Interest

CHART - Credit Cards – Debt vs. Interest

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RULE 4 – The elimination of debt then is of primary importance in one's quest for prosperity

The unrealized wealth building benefits associated with debt elimination are substantial.

$300,000 Mortgage @ 8% = 30 Years

Conventional Mortgage

$792,466   

$1,234,841

Prosperity System

$792,466

$2,527,341

Lost Opportunity Cost = $1,292,000

This conventional $300,000 mortgage will be paid off in 30 years with total payments of $792,466. If we assume a 5% per year increase in property value over the full term of the mortgage, this asset will increase in value to $1,234,841.

Typically, utilizing the Prosperity system, this mortgage could be paid off in as little as 8 years. If the homeowner then invested the monthly mortgage payment amount of 2,200 (utilizing the Prosperity System) for what would have been the remaining term of the mortgage (22 years) @ 6.5%, the client would come out $1,292,500 ahead.

We call this the Lost Opportunity Cost, or the potential loss to the client for not taking advantage of this wealth building opportunity .
Your wealth building potential is inhibited in direct proportion to the amount, rate and term of debt you maintain.

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The secret to wealth has a lot to do with how you handle debts, when and how you accumulate assets, and how you manage your money.

Do the Free Prosperity Financial Snapshot … and take control of your financial future!