Key Area [9 of 10] Maximum Potential
Level 1, 2, 3 (Asleep)
You make cash and spend every dollar of it. 40 cents of each dollar he earns goes to Uncle Sam. Federal income tax, state income tax, FICA, Medicare, tax on gas, property tax, sales tax on unlimited items, luxury tax, etc. Tax is a massive eroding factor in the amount of money you actually hold onto. The next eroding factor is that of interest paid on debt. 35% or .35 cents on each dollar you earn goes to interest on debt. Mortgage debt, auto loans, lines of credit, credit cards, leases, etc. it's an incredible amount that passes through your hands; you hold onto none of it. The remaining cash you have left is spent on your lifestyle. ZERO cash is being saved. How could you possibly even consider saving when you have these kinds of economics going on in your life.
Level 4, 5, 6 (Awake)
You go from zero to about 2-4% savings rate now. You know this does nothing in the grand picture. You know you need to save but it has not become a must in your life. You have no commitment. Your lifestyle is your top priority. You keep saying “someday I will.” You think “I hustle my butt off and therefore I'm entitled to a great lifestyle.” This mindset actually ends up biting you in the butt - keeping you in scarcity, creating in scarcity, and feeling a tremendous feeling of lack. Your driving need is significance in your life and as such you will sacrifice the security of your family’s economic plan to keep this significance in full force. You earn a higher income but it goes to taxes, debt, and lifestyle. You want to save and be empowered by a plan but the need for significance drives the ship, leaving you wanting but never doing anything about it.
Level 7, 8, 9 (Active)
You have transformed from significance to growth in your life. You know now, for the first time, that growth is a more fulfilling need and saving money. By starting to have tax strategies that lower your overall taxes, allowing you to hold onto more money you make, thus allowing you to save more. You are also starting your own banking system where you pay interest to yourself versus a bank. These two alone, paying less in tax holding and paying yourself interest versus a financial institution, allows you to hold onto a significant amount of more money. This holding on to more creates a very high rate of return. You now have hope for the very first time that you don't have to sacrifice lifestyle to do this. You are empowered.
Level 10, 11, 12 (Accelerated)
You are truly achieving your maximum potential by paying less in tax today and in the future holding on to more, which allows you to save more. This creates a very high rate of return for you, holding on to more of the cash that passes through your hands. You have created a fully functioning personal banking system, paying yourself versus a financial institution interest. This allows you to create at the highest levels in all areas of your life. Growth and contribution are now the driving needs in your life.
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