Winning Your Financial GAME By Perrii Muthuraman
My friend Dr.Tomas McFie has sent me his wonderful book titled, “Winning Your Financial G.A.M.E.” It is all about creating a concise Guaranteed, Available, Manageable, Equity Plan to track your winning financial game. Though this book is intended for Americans, it is useful for all.
When I look at his GAME plan, I realize that it is very relevant to Canadians as well. Here are some portions of the book:
- Taxes and interest paid to deprive you at least 60% of your income. So learn to avoid (legally!)
- Average and actual Rate of Returns (RORs) is not equal. Average ROR may be misleading. Better to focus on actuals and not on average, when you invest.
- Saving is a moral value…But hoarding your resources will cripple you…Financially, the more liberal, yet vigilant, you are with your savings the wealthier you will become
- Money in motion is called “velocity of money.” The value which velocity of money creates is called “volume of interest.” (one that leads to generating profits)
- Failure to collect an adequate return on your money at work (the money you lend) will eradicate your savings, force you out of the lending game….
- As long as the parties honor… contracts, contracts protect profits.
- Positive Cash Flow (PCF) is money left in your control after you’ve borrowed money and paid back your current contractual liabilities. This knowledge will provide you with an extra incentive to save. Saving is the beginning of your ability to play offensively.
- Become your own creditor. By becoming, you have positioned yourself to profit from the interest on lending (to yourself). Be your own “owner.”
- When you spend your own money, you should pay yourself back, at least what you would have paid to use someone else’s money. If you do not do this, then paying cash costs you more, not less over time.
- The day you fail to pay yourself back is the day you will lose your (total) savings.
- Don’t become the “pawn in a game, where nobody knows the rules.” The game you play is determined by who you believe.
- Learn to spend your dollars more than once. (Yes, you read it right: Learn to spend your dollars more than once.)
- The minds of the masses are controlled by the media. (So, you choose and play your position)
- Stay the course, trading your downtime for extra points.
- Who you believe matters.
Basically GAME plan is about investing through insurance and enjoying the benefits such as:
- Spending your dollars more than once.
- protecting the large components of your income (interest and taxes)
- By paying interest to yourself or something similar to that.
- And benefitting from taxes legally.
This concept is more relevant for Conservative investors, Business Owners, and High-Income earners. If you belong to any of these categories, let’s talk. Call Perrii at 416 473 6100 or email: email@example.com