You probably own a variety of financial products and have made many financial decisions. Each product and financial decision most likely has been made individually and without much thought of integrating them into a skillfully coordinated and efficient strategy. Without a financial model to assess, evaluate or measure each financial decision, your money may become uncoordinated, inefficient and unproductive.
Using a financial model that contains all aspects of your financial life. It provides you with a full view of your financial situation categorized into three components of Protection, Savings, and Growth, which makes it easy to understand and follow.
An educated consumer is always in a better position than one who is unsure and insecure about the money decisions they are forced to make in life. A financial model provides you with a tool to measure and coordinate each money decision with the purpose of achieving financial independence.
Instead of making financial decisions one at a time in an isolated manner (micro), Rich advocates financial decisions based on an organized, coordinated and integrated model (macro) approach. Your assets and financial decisions are:
COORDINATED:When coordinated, your assets work together harmoniously.
INTEGRATED:When integrated, they provide for a potential increase in money supply and benefits.
VERIFIABLE:A financial model helps you compare, measure and verify results.
PERFORMANCE-BASED:With a financial model you are no longer vulnerable to making decisions based on opinion or sales hype. Money decisions are now strictly performance and value based.
IMPLEMENTED:The financial model provides a method for your money decisions to be easily and automatically implemented.
ORGANIZED:The financial model will help you visualize how all your assets are working and at the same time provide an organized filing system.
CONTROLLED:Your money and assets will be more in your own control which leads to making intelligent financial decisions.