You are on page 1of 116

Ev ery Man Is The Archit ect

O f H i s O w n Fo r t u n e
Sallust

You Are

Destined
For
Wealth
A One-On-One
Coaching Experience

Eighty/T w e nty T ech no logies, I nc.

d e s t i n e d
w el co me

to

f o r

w e a l t h

d e sti ne d

f or

we alt h

From The Desk Of Chris P. Hendrickson

Dear Friend,
Welcome to my Destined For Wealth program, a One-on-One Coaching
experience, and congratulations on your commitment to making your financial
dreams come true. I admire and respect you because you want more in your life and
you are willing to do the little things that can make all the difference, the difference
between mediocre results and extraordinary ones.
I am excited that you have chosen this program to assist you in developing, and more
importantly achieving, your financial dreams. I believe you will find this program to
be fun, logical, and ultimately beneficial.
I believe that, at some level, everyone desires to be financial independent. In other
words that you work because you want to, not because you have to pay the bills.
As you may know, this program incorporates the system I used to go from being
$28,000 in debtwith a negative Net Worth of $18,000to having personal assets of
more than $2 million. In other words, I know this system works! However, it did
take me ten years to accomplish these results, and of course I experienced many challenges and learning experiences along the way.
My desire for you is that, through the trials and mistakes of myself and others, you
will be able to take advantage of this system to accomplish similarif not greater
results in a much shorter period of time.
I wish you all the best in your quest to achieve your financial dreams, and I look forward to hearing the story of your success.
Best Regards,

Chris P. Hendrickson
Author, The 5-Minute Debt Solution

Eighty/Twenty Technologies, Inc.

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

d e s t i n e d

f o r

w e a l t h

Every man and woman


is the architect of his or her own fortune
SALLUST

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

d e s t i n e d

f o r

w e a l t h

getting to know
your workbook
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .pages 4-8
Session 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .pages 9-18
Take Count finding out where you are right now.
Money Metrics, are you winning or losing the game? . . . . . . . .pages 15-18

Session 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .pages 19-28


Know your outcomes setting clear goals for financial independence.

Session 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .pages 29-44


The psychology of financial success be an investor not a
spender, a profitable company not a consumer.

Session 4, Part 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .pages 45-68


Closing the gap putting your offense plans to work
Offense Plan #1Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .pages 49-54
Offense Plan #2Saving . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .pages 55-58
Offense Plan #3Investing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .pages 59-62
Offense Plan #4Monitoring/Measuring . . . . . . . . . . . . . . . . . . . .pages 63-68

Session 4, Part 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .pages 69-108


Closing the gap putting your defense plans to work
Defense Plan #1Debt & Expense . . . . . . . . . . . . . . . . . . . . . . . . .pages 71-90
Defense Plan #2Spending . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .pages91-98
Defense Plan #3Protection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .pages 99-104
Defense Plan #4Taxation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .pages 105-108

Session 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .pages 109-114


Resources for continued success
tools, books, additional coaching, software.

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

d e s t i n e d

f o r

o ve rv ie wa

w e a l t h

nob le

g oal

The quest for financial independence has long


been one of the noblest of goals one can achieve.
It is our birth right to desire and pursue happiness, personal financial freedom and economic
security. We can achieve it and we deserve it!
However for many of us we have developed all types of obstacles that get in our way of achieving true financial success. These obstacles come in many forms such as beliefs, fears, impulsive
and compulsive desires, negative patterns, judgement by others, confused values and rules
about what we may want and feel we deserve.
There is a difference in seeking to have a lot of money and material possessions, and building true wealth and financial independence. People get confused about what they are ultimately after and they become focused on the size of their bank accounts and the amount of stuff
they have.
In this book, you will learn about the most important elements that shape whether or not you
will achieve financial independence and equip you with the psychology to make sure you
do accomplish success in this important area of your life. I have compiled, what I believe are
the best ideas, strategies and exercises to help you on your way to financial freedom and have
packaged it into a very simple to follow, 5 step process.
You will learn precisely where you are by counting all you have, all you spend, all you owe
and all you earn. You will then evaluate how you are doing by using a fair and precise model
of how to determine whether you are winning the game or not. You will discover or refine your
financial purpose, learn about the 3 types of financial goals and how to set critical goals. You will
create your declaration of independence and define who you must become to achieve all you
want.
You will learn the most critical pieces of your psychology that help you to build and sustain
wealth. You will create your company for financial abundance, learn to watch what you say
and how to change the beliefs that hold you back. You will learn about the 8 areas of focusyour
offense and defense planshow to calculate your net worth and your critical mass.
You will learn how to get out of debt fast, stay out of debt forever and build the lifestyle of
your dreams by saving, spending and planning for long term success. You will learn how to
manage, measure and monitor your plans and resources for your continued success.
My wish for you, if you get nothing else from this program, is that you are inspired enough
to make improvements in this area of your life (no matter how small) and I believe that, if you
truly embrace this process, you will make major strides towards accomplishing everything you
want for you and your family. Never forget that achieving your financial goals and becoming
independent of work is noble, you deserve it and you can have it!

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

d e s t i n e d
re ac hi ng

h
o
n
e
s
t
y

y our

f o r

w e a l t h

f in anc ial

de st iny

Your Financial Destiny


Who You Become

"

What You Contribute " The Lifestyle You Enjoy

Your Direction
The Actions You Take, No Matter How Small

Your Eight Individuals Game-Plans


Income ! Save ! Invest ! Monitor ! Debt/Expense ! Spend ! Protect ! Tax

i
n
t
e
g
r
i
t
y

Your Goals & Dreams

a
d
d
v
a
l
u
e

Your Definitions of Wealth ! The Specific Results You Desire

Your Purpose/Decisions
Your Reasons why ! Your Choices & Evaluations

f
i
r
s
t

Your Psychology
Mindset ! Values ! Beliefs ! Standards ! Patterns ! Language

True wealth comes from being grateful for what you already have
ANTHONY ROBBINS
Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

d e s t i n e d

f o r

w e a l t h

n ot e s

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

d e s t i n e d
ove r vie wt he

f o r

w e a l t h

f iv e

mas te r

st ep s

The Take Count Method for wealth navigation

1.
2.
3.
4.
5.

Take Count & Measure


The first step is to find out exactly where you are today by counting:
1. All Assets
2. All Liabilities

3. All Income
4. All Expenses

You must then evaluate how you are doing, are you winning or losing the game?

Set Clear, Compelling Financial Goals


Now that you know where you are and how you are doing you must then decide,
in advance, the lifestyle you ultimately want to have and specifically how much
money will give you that lifestyle. You also need to understand the different types of
goals and how to create a balance between them for ultimate fulfillment.

Build Your Foundation


The next step is to prepare yourself for the journey ahead by working on you.
Your psychology, (i.e. beliefs, values, mindset, language and habitual patterns)
will ultimately gauge the amount of financial success you will experience.
Create a powerful and abundant psychology, the identity of a wealthy person and
a successful business before you begin your journey towards financial abundance.

Create Your Eight Game-Plans


To have the greatest impact on your progress, organize your goals into 8
specific game-plans (4 offensive in nature and 4 defensive) and set specific
objectives in each of these critical areas. Be sure to make all of these
areas a focus to allow for ultimate financial success.

Resources for Continued Success


You must have tools and strategies for making sure you stay on track and that you
consistently seek out resources to help you reach your destiny. You must check in
weekly, monthly and yearly so that you know you are on your plan. Read books,
use software programs, and continue to attend seminars and keep up on financial &
economic news to help you. Hire a coach or professional (one with results)
to help you and be sure to always spend less than you earn.

The best approach is that which works!


Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

d e s t i n e d

f o r

w e a l t h

n ot e s

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

d e s t i n e d

f o r

w e a l t h

session
1
TAK
DISC O V ER

W H ER E

CO

UN T

Y O U

AR E

R IG H T

N O W

Every man is the architect of his own fortune.


SALLUST

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

d e s t i n e d

f o r

w e a l t h

as se ts - inv e stm en t/ p e rs onal


About your Assets

Investment Assets

When counting your assets, you need to


organize them into three groups or classes:

1
2
3

(illiquid or planned spending)

Liquid Investment Assets, These are the type of assets

Business Partnerships

that, when properly invested & managed, bring you an


income or future growth.

Checking Account(s)

Illiquid or Planned Spending, These are assets that you


may not be able to sell, or you may intend to spend
(i.e College, Weddings, Vacations, etc.)

Personal or Household Assets, These are assets that


bring you a more enjoyable lifestyle but would not
bring you any income unless you were to sell them and
move them into your investment type vehicles

Total amount I save each month


to my investment accounts:

Bonds
Value of corporate, municipal or global bonds

CDs
Amounts you have in a Certificate of Deposit

Commodities
Value of any commodities or futures you own

Pension Fund/SEP
Value of these, or similar types of accounts

Investment Real Estate


Fair market value of any properties, buildings

IRAs/Annuities
Current amount in Individual Retirement

Life Insurance
Cash/redemption value of policies you own

Money Market
Amounts you have in a Money Market

Portfolio Accounts
Amount you have in stocks & Mutual Funds

Savings Account
Amount you have in a bank or credit union

401K/403B/Keough/Simple
Value of these, or similar types of accounts

Subtotal Liquid Assets


Subtotal of your liquid investments

Liquid value of any business interests you have

Amount you have in your checking account(s)

Education/College Savings

Amount you have in a 529 or similar type acct

Real Estate

Value of your Current Residence only

Family Trusts

Any money you have in a trust account

Subtotal

$
$
$
$
$
$

Personal Property/Household Assets


Automobiles
Any autos you own

Art & Collectable's


Paintings, Heirlooms, Coins, etc.

Electronics
Computer, Stereo Equip. Phones, etc.

Household Items
Furnishings, Appliances, etc.

Jewelry
Include all items of significant value

Luxury Items
Any luxury items you may own

$
$
$

Illiquid or planned spending

Investment Assets (liquid)

10

prop e r t y

Toys
Boats, Motorcycles, Jet skis, etc.

Any Additional Assets


Any other items you may own

Total Personal Assets

$
$
$
$
$
$
$
$
$

$
$
$

Total All Assets

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

d e s t i n e d
de b ts

&

f o r

w e a l t h

liab ili tie s

When counting your liabilities, it is critical to be as accurate as possible. You may need to use some
scratch paper in order to get the most specific answers to the questions below. Be sure to reference your
most recent loan and credit card statements to access this information. If you dont have a statement,
call the bank or creditor to get the most recent information.

Balance Owed

Type of Debt/Liability

Automobile Loan(s)

Minimum Payment*

Business Loans
Any amount(s) you owe for business interest, etc.

Credit Card Balance(s)


Include all banks, dept.. stores, gas cards, etc.

Education Loans

Any amount(s) you owe as a

result of private school, college, trade school, etc.

Personal Loans

Any consumer credit loans, money

lent by family members, friends, loan sharks, etc.

Mortgages (on your current residence)


Rental/Vacation Property
Include any mortgages you owe on investment real estate

Retail Installment Contracts


Include revolving credit for stereos, furniture, toys, etc.

Any Additional Debt Any other money you


owe: back taxes (IRS), medical bills, collection accounts, liens etc.

Total Liabilities & Debts

*Be sure to list your minimum payment only, do not include any extra you may pay.

If only the people who worry about their liabilities would think
about the riches they do possess, they would stop worrying.
DA L E CA R N E G I E

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

11

d e s t i n e d
av e ra ge

f o r

w e a l t h

m onth ly

inc ome

When counting your income it is important to consider all sources.


Be sure to includes as many sources as possible and to average any
sources that may come in annually, biannually, quarterly, etc.

Your Income (wages, salary, commission)

Your Spouse or Partners Income

Any Bonus Income

Any Other Family Income

Any Dividend or Interest Income

Any Pensions or Trust

Any Additional Income

Business Interests, Rental Properties

Total Monthly Income

All Taxes (you and your Spouse or Partner)


Federal Tax

State Taxes

Medicare Tax

SUI/SDI (State Unemployment/State Disability)

Social Security Tax

Total Monthly Tax Deductions

Net Pay (aka take home pay)

Pennies do not come from heaven.


They have to be earned here on earth.

12

M A R G A R E T T H AT C H E R

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

d e s t i n e d
av er ag e

mo nth ly

When counting your expenses, there are two things


to keep in mind: first, that you ask as many
questions as possible to capture all you spend.
Second that you organize your expenses
so that you think in terms of priority.

My Seven Basic Expenses

1 Rent or Property Taxes


2 Food - Groceries only
3 Clothing Expenses
4 Auto/Transportation
Insurances
5

If you own your home, inc. taxes only

Service, Fuel, Parking, Registration


Life, Disability,
Medical, HMO, Auto, PMI, Legal,
Home/Hazard

6
7

SUBTOTAL
My Seven Basic Expenses

Security service, maids, gardener, pool


service, personal assistant, Butler.

Legal/Professional Fees Attorneys, CPAs, etc.

$
$
$
$
$
$
$
$

Luxury Items - Yacht, Airplane


Medical, Dental, Alternative -

Personal Accessories -

Prescriptions, chiropractor, massage


acupuncture, herbs/supplements, co-pay
Jewelry, Purses, Hats, Glasses, etc

Pet Care - Veterinarian, food, toys,

Rentals/Properties -

Toys - Motorcycles, boats, planes, jet

Household Staff/Support -

supplies, care
Mortgage payment and expenses on
property other than residence
skis, collector car

Travel/Vacations - Airfare, hotel,


timeshare, car rental

$
$
$
$
$
$
$

Any Other Expenses -

Financial/Banking - Broker,
Transactions, Service Fees, ATM, etc.

Furniture,
Appliances, Decorative items, accessories

Limousine, Spa Retreats, etc.

Food - Dining Out


Includes restaurants, childrens lunches,
alcohol, snacks, etc

paper goods, cleanser's, laundry detergent

Windows, carpets, paint, exterminator

Electronics/Technology Computers, Audio/Visual, PDA, Cell


Phones, Pagers, Office Equip.

goods, boating, golf, scuba, skiing, yoga,


painting, collectable's

Household Maintenance -

Education -

College, private school,


seminars, tapes/CDs, Personal Growth,
Books, etc.

Haircut, color, make-up, salon services,


manicure/pedicure

$
$

Grooming Expenses -

Household Items -

Charity, Tithing &

any Donations

babys, family, etc.

Clubs/Organization - Dues for


Contribution -

Gifts - Birthdays, holidays, weddings,

Household Groceries - Toiletries,

Children -

Gym, Athletic Club, magazines, country


club, environmental

Concerts, shows, movies, video rental,


CDs/DVDs

Hobbies/Activities - sporting

Business Expenses -

Day Care, nanny, babysitter, child support, camps

Fun & Entertainment -

My Discretionary Expenses
Any unreimbursed expenses, gifts, meals,
incidentals, etc.

e xpe n se s

Habits - Cigarettes, coffee, tobacco,


alcohol, gambling

Minimum Debt Payments


(from worksheet on page 11)

w e a l t h

$
$

Utilities Gas/Electric, Cable, ISP,


Telephone, Cell Phone, Water/Trash

f o r

Anything else you know is consistent

Total Monthly Expenses $

note
Remember there can be a significant discrepancy between what you think you spend and what you actually do spend. It is highly recommended you track your expenses accurately for at least 3 months to get realistic numbers. You
can use the resources in Session 4 (Offense Plan #4, Monitor & Measure) to help you with this type of tracking detail.
Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

13

d e s t i n e d

f o r

w e a l t h

n ot e s

14

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

d e s t i n e d

f o r

w e a l t h

Money Metrics
A FA I R EVA L U AT I O
F O R

FIN

AN C IAL

TO

O L

UC C ESS

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

15

d e s t i n e d
mone y

f o r

me t ri cs

w e a l t h
e val ua tion

Its important, once you have captured and counted these four critical elements of your financial picture, that you now evaluate how you are doing. Are you winning the game or are you losing the game?
This is not for us to evaluate you, but rather for you to evaluate yourself. It is not our position to make any
judgement about your financial condition and we would like to at least offer some guidelines or
criteria to help you make some type of analysis as as to whether you may be succeeding in this area of
your life.

Score

Income/Expenses
My Total Monthly Income
(Income from page 12)

My 7 Basic Expenses
$

(Subtotal from page 13)

<

>

Percentage
_______________%

(Divide 7 expenses by total monthly income)

Evaluation Scale:
0 - 40% = A
41 - 50% = B
51 - 60% = C
61 - 70% = D
71% & Above = F

Debt to Income Ratio


Minimum debt payments
(total from page 11)

My monthly income
(total from page 12)

Score

$
$

Ratio/payments to income

_______________%

Evaluation Scale:
0 - 10% = A
11 - 20% = B
21 - 30% = C
31 - 40% = D
41% & Above = F

Assets/Liabilities
Total Personal Assets
(total from page 10)

Score

This is a subjective figure and


can really only be graded
based on a few criteria:

*What do you want?


*When do you want it?
*Are you on track?

My Investments Assets
(Liquid and Illiquid total from page 10)

My Liabilities

(total from page 11)

My Net Worth
(all assets - liabilities)

<

>

Rather than evaluate this figure, although it is important


to know, we prefer to have
you evaluate your critical
mass which we will do on
the next page.

If you want to have more, become more.

16

JIM ROHN

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

d e s t i n e d
e valu at ion- ha ve

f o r

w e a l t h

y ou

sa ve d

10 %?

In George Clasons blockbuster book The Richest Man in Babylon, he explains a top key for ensuring
financial success to save a minimum of 10% of your gross earnings. My question to you is...

Have you been doing this?


First lets look at what percentage you are saving currently (based on your answer on page 10)
compared to your gross monthly income. What percentage does this represent? _________%
Now lets look at what you have accumulated over your lifetime. Keep in mind your score can be varied by 2 fac tors, first that you have saved a significant percentage but have invested poorly, or that you have saved a very small
percentage but have been very wise (or lucky) in your investment choices. Answer the questions below to see how
you score:

How many years have you been in the workforce? ______________.

What would be a fair amount, as an average*, you have you earned


annually over your entire working career? $ _____________.

Multiply #1 and #2. Answer = $ ___________.


How much money in the form of cash and investments*, do you
currently have? $ ___________ (Liquid investment assets only from page 10).

What percent does this represent? (divide #4 by #3) ____________%


How did you score? (Please circle one)

tip
*You can contact the Social Security Administration at 1.800.772.1213 and ask for an application
for a Statement of Earnings form. This will be a record of all earnings you have reported your
entire working life. You can also obtain a form online at: http://www.ssa.gov/online/ssa-7004.pdf

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

17

d e s t i n e d

f o r

e valu at ion y our

w e a l t h
e ig h t

are a s

In making an overall evaluation of where you are compared to where you want to be the simplest of
tools is to rate yourself on a scale of 1-10. 1 being of the poorest results you can imagine, and 10 being
all you want, your most desired situation. You must also break things down to the 8 most
critical areas that effect your overall success. Below are the 8 areas of financial management (which
we will be covering in session 4 and 5 of this manual).

Area of Management

Score
(Scale of 1-10)

Income (The amount you are earning compared to


what you desire to earn ideally)

Savings (The amount you are saving compared to


what you want to save monthly/yearly)

Investing (The overall returns on your investments


compared to where you would like them to be)

Measure/Monitor (Your system to track and know


where you are compared to where you want to be)

Debt/Expenses (Your overall debt situation and your


ability to stay out of debt)

Spending (Your ability to know what you are spending and how that effects your overall plan)

Taxes (Your ability to pay only as much as you ethically


and legally owe and no more)

Protection (Your plan to protect you and your familys


assets from disaster)

Average Total (Total score divided by 8)

Take the time now to notice where you have scored the lowest and you may want to make a decision
to make this area (or areas) your highest focus for a period of time. Of course the great balance of life
is to accomplish this without jeopardizing your score in the other areas and more importantly the major
areas of your life (health, relationships, emotional well-being, etc.).

18

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

d e s t i n e d

f o r

w e a l t h

session
2
K
SET

N O W

C LEAR

YO

UR

UTC O MES

C O MP ELLIN G

F IN AN C IAL

G O ALS

It concerns us to know the purpose we seek in life,


for then, like archers aiming at a definite mark, we shall be more likely
to attain what we want.
ARISTOTLE

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

19

d e s t i n e d
my

f in anc ial

f o r

w e a l t h

mis sion

st ate m en t

When you get down to it, you can only do two things with your money.

You can spend it or you can save and invest it.


Write down all the reasons you must save and invest for
your financial future. Why are you playing the game? What reasons
drive you to be successful and to have financial independence?
A few criteria for you:
(1) Keep your statement brief, use emotionally charged words;
(2) Include yourself and others and and exclude universals
(i.e. I want to change the whole world).

My Financial Mission Statement

Without a vision, people perish.


H O LY B I B L E

20

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

d e s t i n e d
3

t y pe s

of

f o r

w e a l t h

f inan ci al

g oal s

Independence Goals
These goals are specific, long term sums of money that you are moving
towards. They are widely referred to as retirement goals. They represent a specific date by which you will achieve them. You are clear about
what this goal will mean to you in terms of income and lifestyle when
you achieve them. The three levels are:
1. Financial Assurance (12 month, 5 Year and for Life)
2. Financial Independence
3. Financial Abundance

Pathway Goals
These goals are more short-term in nature and have more of
a time target attached to them. They also lead you in the direction of
your Critical Result goals by increasing your critical mass and net worth.
They include:
!
!
!
!
!
!
!

Weekly, monthly, quarterly & yearly goals


Getting out of debt goals
Five- and ten-year goals
Spending goals
Investment goals
Savings goals
Income producing goals or business ideas

Lifestyle Goals
These are the goals that allow you to enjoy the process. The
problem with them is that they require you to spend your money,
instead of saving and investing it. When effectively planned, however,
they are critical to enjoying life:
!
!
!
!

Vacation & Travel


Health & Wellness
Credit Goals
Vehicles

!
!
!
!

Clothing
Toys & Gifts
Homes
Contributions

!
!
!

Education
Recreation
Celebration/Parties

The quality of a persons life is in direct proportion to their


commitment to excellence regardless of their chosen field of endeavor.
V INCE LOMBARDI

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

21

d e s t i n e d
c r itic al

f o r

w e a l t h

re s ul t

g oals

When setting financial goals you want to have different targets to shoot for.
Each of these levels of lifestyle has a number attached to
it that will represent what it will take for you to achieve it

Financial Assurance
You can retire with the income from your savings mass and have
these basic needs met without having to work
1.
2
3.
4.
5.
6.
7.

Your property taxes or rent


You and your familys food
You and your familys clothing needs
All transportation needs
All insurance & medical needs
All Utilities
All minimum Debt payments*

Financial Independence
The top 6 needs above are met*. In addition, you can continue to
fund these or similar expenses:
8. You or your childrens education needs
9. Continue a pension or retirement fund
10. Basic entertainment and reasonable luxury items
(movies, shows, vacations)
11. All Household Needs (Repairs, Upkeep, Furniture, etc.)
You can live the same quality of life you live today (or better) without having
to work. In other words, you are independent from work.

Financial Abundance
You can now do what you want, when you want, with whomever
you want, as much as you want. All the time! In other words, you
have enough money accumulated that you are set for life!
*Your ultimate goal is to have this sum be zero since you cannot have
financial freedom without debt freedom.

note

22

When you are debt free (including a mortgage),


the amount you need to be independent will decrease.

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

d e s t i n e d
how

muc h

f o r
do

w e a l t h

y ou

ne e d?

In order to create financial independence, you must first determine how much money will create your
independence from work. This formula can be done many ways, and will include many factors like:
amount of expenses, inflation, rate of return, tax rate and whether you plan to live totally off the income
you earn (ROI) or whether you plan to spend some or all of your principal balance (Critical Mass) along
the way or a combination of the two.
I encourage you to meet with a Professional (proven) Financial Planner at some point to help you in
determining this figure for you and your family, but to keep it in its most simple form, all you must do
is the following:

Determine how much money will either replace your current


yearly income, or give you the income you want/need to cover
your 10 basic expenses (assuming you have zero debt).
Divide this figure by the percentage that you believe is a
realistic rate of return that you will receive on your total investment portfolio (your blended return).
This figure will be the amount of money you need (Critical Mass) in a relatively secure investment
portfolio that will create the income and lifestyle you desire for life.

For example, if you want to have $100,000 per year to cover your expenses, you would do the
following: $100,000 divided by .08 (8% blended return on investments) equals $1,250,000.00

exercise
How much income do you want/need per year to be
independent of work? $ ______________
What rate of return on your investments do you believe you
can produce? ________%
Divide question #1 by question #2 and write this answer on the
following page under your amount for financial independence.
note
Keep in mind that you can always chose to continue to work and contribute to this amount, or you can always chose to
spend some of this capital each year rather than purely living off of the income created by this mass.

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

23

d e s t i n e d
de c lar at ion

f o r
of

w e a l t h

inde p e nde n ce

these are the results i commit


to from this day forth!

I promise myself to be committed, flexible, disciplined


and focused, and to do whatever it takes to make these
dreams come true for me and my family!
Today I declare my independence from work,
and I commit to building the foundation of
financial well-being that will provide the freedom,
prosperity, and quality of life I truly desire.

My Critical Result Goals


The amount I need for ________________ is: $ _____________.
I will have this by the year ____________.
This is the subtotal from page 13 (7 Basic expenses) multiplied by 12 and divided by a blended rate of return.

The amount I need for___________________ is: $ _________.


I will have this by the year ____________.
This is the amount calculated on page 21.

The amount I need for_________________ is: $ ____________.


I will have this by the year ____________.
This number is figured by taking the amount you need for independence and increasing by a percentage
or dollar figure, the additional amount you would need per year to have all you want.

Its not what we get, its who we become that makes us wealthy!
ANTHONY ROBBINS

24

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

d e s t i n e d
m y

f o r

f in anc ia l

w e a l t h
g oals

these are the goals I am committed to achieving!


(Include the type of goal, and the timeframe in which you want to achieve it)

Set a goal with the end result in mind.


S T E P H E N CO V E Y
Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

25

d e s t i n e d
m y

f o r

w e a l t h

f in anc ia l

g oals

these are the goals I am committed to achieving!


(Include the type of goal, and the timeframe in which you want to achieve it)

Goals are simply dreams with a deadline!


EA R L N I G H T E N G A L E

26

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

d e s t i n e d
my

top

f o r

1- y e ar

w e a l t h
g oals

these are the top goals I am committed


to achieving in the next 12 months!

1.__________________________________
2. _________________________________
3. _________________________________
4. _________________________________
5. _________________________________
6. _________________________________
7. _________________________________
8. _________________________________
9._________________________________
10._________________________________
note
Be sure to have a balance of goal types (Critical Result, Pathway & Lifestyle)
so that your achievement brings you ultimate success.

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

27

d e s t i n e d
m y

f o r

fin anc ia l

w e a l t h
g oals

Who must I become to achieve all that I want?


The purpose of a goal is not so much what we get, but rather who we become to achieve it.
Write below all that you must become in order to achieve all that you want (i.e. I must
become a reader and student of wealth, I must be focused and disciplined, etc.).

If you dont spend your time working on your goals,


then you are spending time working on the goals of someone else.
JIM ROHN

28

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

d e s t i n e d

f o r

w e a l t h

session
3
T

H E

SY C H O LO G Y

BE
A

AN

O F

IN V ESTO R

P RO F ITABLE

IN AN C IAL

N O T

BUSIN ESS

N O T

SUC

C ESS

SP EN DER
A

C O N SUMER

The difference between a successful person and others is not a lack


of strength, not a lack of knowledge, but rather a lack of will.
VINCE LOMBARDI

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

29

d e s t i n e d
wha t

f o r
is

w e a l t h

mon e y?

Money is an _________ of
______________ in the marketplace!
In other words, money is a means to an end.

f ive t hin gs y ou ne e d t o
ac h ie ve f ina nc ial abu nd anc e

You need _______.

You need ______________ growth.

You must make _______________ choices.

You need some _________________.

You need to have a ______________.

30

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

d e s t i n e d
the

# 1

ke y

t o

f o r

w e a l t h

f ina nc ial

a bu nda nc e

The only way you will ever achieve financial abundance


is to learn and consistently apply this simple formula.

____________________ less than you earn,


and ______________________ the difference.

Then _____ - ________________ your returns


for compounded __________________ until you
reach a ______________ __________ of
investment capital that creates the
_______________ and income you desire
for life.

note
This simple formula will insure that there will come a day when you never have to work
another day in your life and that if you do work, its only because you want to!

Receiving is evidence that youve given consistently.


AN T H O N Y R O B B I N S

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

31

d e s t i n e d
y ou r

f o r

be lie f s

w e a l t h

ab out

mon e y

Your beliefs are the most powerful force within you to shape your financial destiny. They have
the power to create, the power to destroy the power to manifest and the power to shut down all
resources and options you have available for creating wealth and financial abundance. I believe
they are the single most powerful force within you to not only create, but also to sustain wealth
for you and your family.

What is a belief?
Oxford American dictionary defines it as the feeling that something is real or true. If you
really stop to think about it, a belief is simply an idea and ideas are defined as a plan
formed in the mind, an opinion or mental impression. It is truly miraculous how beliefs
work because we are able to take an idea or thought, form it as something that is so strong
within us that it can control every aspect of our life once we embrace it, and back it up with
strong emotional support. There are three levels of a belief, and the only difference
between them, is the emotional intensity or amount of certainty we attach to the validity or
truth of that idea.
The first level of belief is an opinion which is the least potent as they can be changed simply with another or alternative point of view. The second we call a belief and this is a
stronger feeling than an opinion because you have more references to back up your idea so
you have more emotion invested in the idea. The third level and most powerful (or most
devastating) is what we call a conviction. These are the types of beliefs that you literally
would die for. The emotional intensity is so strong that you would take such a firm stance
to defend its truth. We end relationships, start new careers, fight to the death and build
world changing organizations through our convictions of what we feel is right, true or worthy of our time energy and focus.

Where do they come from?


These ideas we form in our head come from so many sources. They come from the people
around us, our friends and family, school teachers, church, television, books, newspapers,
magazines and movies, role models and mentors. They come from any source of influence
that tries to affect how we feel about something. During our formative years (depending on what you read, these are defined as the years 2-8) we are taking in so many ideas
everyday and they begin to stack up in our brain. I call it the cerebral waiting room, just
waiting for an opportunity to re-access the idea again. What this means is that we go
through a process of accessing references and like the legs to a table, we begin to form these
references to give the idea something to stand on, a basis for support. The more references,
the more emotion we begin to attach to the idea that it is true or real and the stronger
it becomes. If you have an opinion, it means that you have been exposed to an idea but you
do not have many references or you have not stacked that much emotion to the idea so it
remains an opinion. The emotions are formed by events that may or may not be significant to us.

If you believe you can, or believe you cant, you are right
H E N RY F O R D

32

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

d e s t i n e d
y ou r

f o r

be lie f s

w e a l t h

ab out

mon e y

For example, lets say you are aware of the idea that people should not drive after they
have been drinking. You may have read an article or seen a billboard that this idea should
be supported. Currently it is in your head but there is little emotion. Now lets say one
of your best friends drives drunk and has a tragic accident. You now have a reference and
a significant event that effects your life, you begin to attach much more emotion to this
idea. The more emotion you attach, and the more aware you become that this is a problem,
the stronger your belief will become. It would be safe to say that the woman who started
M.A.D.D. (mothers against drunk drivers) has a conviction that you must never drive
drunk.

Why are they so powerful?


Beliefs can work to nurture the results we desire, or work in the opposite direction and take
us further away from our goals. They become a self fulfilling prophecy because there is an
unconscious desire to remain consistent with what we believe. This way we can say see,
I told you so when we fail at a task or endeavor. To change them is uncomfortable because
we enter the unknown and are forced to step up our abilities to get what we want.

How can you change a belief?


I think the biggest problem we face with beliefs is built right into the very definition of
what they are. The very fact that we evaluate beliefs by whether they are right or wrong,
true or false or real is the problem. In order to change a belief or evaluate whether it
is right for our current circumstances, we must change our evaluationthe questions we
askto determine if an idea is best for us right now. The way I have coached my clients to
make this evaluation is to ask the question in a way that focuses on a different outcome.
Its not about whether it is right or wrong, true or false, the sole reason for a belief is to support us in what we want for our lives and for the greater good of others. Thats it! Its not
about right, wrong, true, false, good or evil. It is all about whether what we want serves
us in a greater capacity while also serving others and serving the greater good. If you
approach a belief with this type of questioning we have a much better chance of shedding
the ones that hold us back and lead us to new belief systems that allow us to reach our
wildest dreams.

Lets go to the next page and change one right now!

If we dont believe that something is possible,


then we will find all sorts of obstacles to stand in our way
L O U I S E H AY

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

33

d e s t i n e d
y our

b e lie f s

f o r

w e a l t h

a bou t

mone y

exercise

Write down a belief you feel you have that is negative about
money or wealth (i.e. wealthy people are greedyor it
takes money to make money):

Now write down the source of where you think this belief
may have come from (i.e. my father, mother or book, etc.).

Looking back, was it from a person or source you now


respect in terms of financial success? YES/NO
Write down all the reasons this belief no longer supports
you and all you want:

Now write down a new belief (it may be the antithesis of


the old belief) that will support you and your financial goals:

Write down all the reasons this new belief is true or will
better support you and your goals in the future:

34

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

d e s t i n e d
s e tti ng

u p

f o r

y ou r

w e a l t h
c omp any

If you were to give your portfolio and financial plan a name, what would it be? Take a moment now to
create a name for your widget factory. Think of a name that would excite you to contribute to its success, a name that would make you proud to say business is great.

Write the name below:


exercise

The name of my/our company is:


_________________________________________
and I am/we are in the business of

Financial Abundance
example
Some examples of past graduates include:
!
!
!
!

Me, Inc.
Mano E Mano
P.A.W., Inc.
Freedom Corp

!
!
!

Money Machine
Millions in Motion
Dollars R Us

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

35

d e s t i n e d
wa tc h

y ou r

f o r

w e a l t h

voc ab ul ar y

It is important to remember that the words you choose to describe your financial condition, will become
your financial condition. Be sure to choose your words wisely.

Are you a millionaire in training,


OR
barely getting by?
Are you making ends meets,
OR
striking it rich?
Write in the space below the way you
currently describe your financial situation:

______________________________________________________

Now write below the way you will


describe yourself from this day forth:

______________________________________________________

That which we speak, we become.


ANTHONY ROBBINS

36

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

d e s t i n e d
ab u ndan ce

f o r

w e a l t h

vs.

s ca rci t y

Economy
Traditionally, economy is defined as "the study of scarce resources." But economy is driven by
technology and technology is abundant, not scarce. If you have a psychology of scarcity, in
other words there isnt enough to go around, then that is what you will experience. There is a
difference between being frugal and coming from a place of scarcity. When you are coming from
a place of scarcity, you are coming from a place of fear.

An Abundant Psychology
So what is an abundant psychology? It is the beliefs, values, patterns and mindset you have
around money and financial success. How you think and feel every day about your goals,
financial dreams and what you believe is possible. As you make your financial decisions, stop
and think about where the evaluation/decision is coming from. Is it coming from a place of
scarcity and fear, or is it coming from a place of abundance and faith.

Abundance vs. Scarcity


Lets talk about abundance vs. scarcity. One of my favorite economists is a brilliant man named
Paul Zane Pilzer. He has written several books about economy, including Unlimited Wealth and
God wants you to be Rich, which I highly suggest you read. These books talk about how to prosper in any economy and his work is based on this very simple premise. That the actual definition
of economy itself is limiting. Economy is defined as "the study of scarce resources" and this in
and of itself creates a problem. You see Pauls psychology is that economy is driven by technology and technology is abundant, not scarce! Remember, in wealth 80% of the results you
achieve, will be determined by your philosophy, or your psychology about wealth.
If you have a psychology of scarcity, in other words, there isnt enough to go around that is what
you will experience. I want to be clear, that this does not mean you are careless with your spending. It is still important to be frugal with your spending and the management of your finances.
There is a difference between being frugal and coming from a place of scarcity. When you are
coming from a place of scarcity, you are coming from a place of fear. So what is a psychology, or
better yet, an abundant psychology? These are the beliefs, values, patterns and mindset you have
around money and financial success.
How you think and feel every day as you work towards your goals and the things you say to
yourself over and over again. My good friend Tony Robbins calls these sayings, or utterings,
your INCANTATIONS! All of these things govern how we think and feel, and therefore, what
we focus on and ultimately the decisions you make. And its your decisions that will determine where you wind up financially. Your decisions about what to buy or what not buy, decisions about investing, or whether to get into debt or not. All of these decisions, no matter how
small, will have a consequence on your financial outcomes. Whether you become rich or poor,
kicking butt or barely getting by! In the financial game, the difference between a small decision
like buying a Coke everyday from a vending machine, instead investing that money in Coca-Cola
stock can be enormous. As you make your financial decisions, stop and think about where the
decision is coming from. Is it coming from a place of scarcity or fear, or is it coming from a place
of abundance and faith.

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

37

d e s t i n e d

f o r

w e a l t h

p rob l e ms

Quality Problems
There is nothing worse for a person, than to have the same problem for 10 years! The only way to overcome
a problem is to grow past it, to become more in the process! Who you are is bigger than what can happen
to you! If you are living and breathing you will have problems. This is guaranteed. The goal of life is not
to have no problems, but rather to have better quality problems that will ensure you grow and become
more in the process. If you wish for small, easy financial problems, then thats exactly what you will get.
Again, dont wish things were easier wish you were better.
Let me ask you a question. Which problem would you rather have, A not being able to make your mortgage payment of $5,000 dollars a month (approx. a $700,000 loan) or B not being able to meet your $300 rent
payment? I sincerely hope you picked "A". If you didnt, then you may want to consider a change in your
evaluation of these two scenarios. Let me explain why. Jim Rohn, one of my favorite mentors says it best
"dont wish your problems were easier, wish you were better". If you wish for the easier problem, then thats
what you will get. Its the harder, more challenging problems that make us grow, and thats the point of
this game anyway, is to grow! To become more than you were when you started. This is my sincere desire
for you, because this is what will bring you fulfillment. There are plenty of people out there who have a ton
of money but who are miserable, and this isnt what you want. People like Elvis Presley, John Belushi and
Marilyn Monroe had all the money they needed but werent fulfilled inside. This is not wealth! You want
to be wealthy, emotionally, spiritually and financially, not just to "have a lot of money"! You want to have
better problems, as they are a sign of life. There is nothing worse than a person with the same problem for
10 years! You know the person, they complain about the same thing for a decade, not doing anything to
move past it. And the only way they will is when they grow. The only way to overcome a problem is to
grow past it! Think about a problem that you had maybe 10 or 15 years ago, a really big problem. When
you think about that problem now, how does it make you feel? Do you feel like you can handle it, no problem? Doesnt it feel insignificant to you now if you think about having to overcome something equal to that?
Not to say that you want to, but you have the emotional muscle to deal with it should this level of problem
ever arise. The reason for this, is because you are not the same person, you have become more! Who you
are is bigger than what can happen to you!
I was in a room with two friends and they were discussing investing and the stock market. One friend (who
is doing very well financially) had made a comment that he lost nearly $20,000, because of a "dip" in the
market. The other (who is struggling) responded "my gosh, that would kill me!" and "I could never imagine that!". And guess what, he never will experience that if he doesnt make a change in his philosophy
about that kind of a problem. What he doesnt realize is what this $20,000 represents to this other person!
In other words, you need to look at the big picture because, the gentleman who had lost the $20K, has nearly a million dollars invested in the stock market, a mere 2% drop. Consciously, or unconsciously, if a person
says "I never want to lose that amount of money" and they dont make a shift in their perception of this kind
of problem, they will never experience the level of success it will take to have that kind of a problem.
If you are living and breathing you will have problems, this is guaranteed. The goal of life is not to have
no problems, but rather to have better quality problems that will ensure you grow and become more in
the process. If you wish for small, easy financial problems, then that is exactly what you will get. Again,
dont wish things were easier, wish you were better.

38

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

d e s t i n e d
avo iding

t he

f o r

w e a l t h

lot te r y

sy nd rome

Some people play the financial game with the philosophy I call "The Lottery Syndrome." In
other words, a reason they dont save and do the little things day to day that actually create
wealth long term, is because they believe, at some level, that one day they will hit "pay-dirt,"
win the lottery, or come into a windfall of money and that will solve all of their problems.
The place we need to come from to win this game, is the mindset of always spending less than
you earn. If you consistently do this, and by chance you do win the lottery, or fall into a large
sum of money, from an inheritance or lawsuit etc. then it becomes a "bonus" to your existing
plan. Getting rich quick doesnt work! Deciding to become rich, for the right reasons does!
Remember this, gold (meaning money) avoids those unwise in its use! What this means is, if we
are not wise in the use of our money, it is going to go to someone who is! This is a universal
truth, a principle of financial success!
Avoid the mindset of "someday Ill save" or "when I make enough money, then Ill start saving",
or you will find yourself coming up short in the financial game. Make a decision to give yourself the gift of at least 10% of each paycheck you receive.

t he

80 /2 0

p hilos op hy

You may have heard of Vilfredo Pareto or the Pareto Principle? Pareto was an italian economist at the University of Lausanne in Switzerland in the late 1800s. When he died in 1923, he
was Senator of the Italian Kingdom. Mr. Pareto created a philosophy of economics known as the
Pareto Principle or more popularly known as the 80/20 rule.
The basic premise of this principle is that 80% and 20% are the general numbers or percentages
that inherently make up the outcome of any endeavor. For example, 80% of the results you get
in your life are determined by only 20% of the actions you take and conversely 20% of these
results absorb 80% of your resources or efforts. If you are in sales, 80% of your revenue is generated by only 20% of your customers or 80% of your sales revenue is generated by only 20% of
your sales force. If you are in management, 80% of your headaches or challenges come from 20%
of your staff or 80% of your time can be consumed by 20% of your problems.
This is not meant to be an exact science but rather a philosophy, that once aware of you can begin
to focus on to gain the edge in any area of your life. Would you do things differently if you
knew that 80% of the actions you were taking were not supporting your ultimate goals?
This system was designed to help you focus on the 20% that can make 80% of the impact in your
financial life.

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

39

d e s t i n e d
ne t

w ort h

f o r

v s.

w e a l t h

c rit ic al

ma ss

People tend to focus on everything they own such as cars, toys, jewelry, and household items to determine their financial well-being rather than focusing solely on the cash , and investments they have accumulated. This can create a false sense of security as these items will not bring you income in the future
unless you sell them. To be successful in determining your true level of financial success you must focus
on your critical mass of savings.

Below is a simple, but powerful, distinction between


these two very different definitions of wealth.

net

worth

The formula for determining this is simple:

All Assets - All Liabilities = Net Worth


VS

critical

mass

The amount of money you have amassed in the form


of savings and investments that will bring you a future income =

Critical Mass
The problem with using your Net Worth as a basis for determining the health of your finances is that
you are including items that you may not ever convert to cash or cash flow. Net Worth, although a very
popular term used in the financial world, is not accurate when it comes to determining cash or cash flow
which is the basis for being independent of work.
An example would be, lets say person A gets a $5000 bonus and he decides to go out and buy himself
a Rolex. His Net Worth has just increased $5000 (maybe a little less with devaluation) but his Critical
Mass has not increased at all. Person B takes the same $5000 bonus and buys a $500 Swiss Army watch
and takes the remainder and puts it in a Money Market. His Net Worth may have gone up near $5000
but more importantly his Critical Mass went up $4500 and will continue to go up if he reinvests his interest or dividends. His watch may or may not go up in value but he does not care because that is not his
focus.
A question that is critical when making financial decisions is by spending this money am I increasing
my critical mass or only adding to my net worth?

Happiness is not having what you want, its wanting what you have.
In other words, happiness is an inside job.
WAY N E D Y E R

40

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

d e s t i n e d
a re

y ou

re al ly

f o r
a

w e a l t h
mil liona ire ?

The Millionaires Ladder


s
p
e
n
d

Raise your standards!

$1 Million in Critical Mass


Your cash & investments only

l
e
s
s
t
h
a
n

$1 Million in Net Worth*


All of your assets - all of your liabilities
*Standard U.S. Definition of a Millionaire

y
o
u
e
a
r
n

$1 Million in Assets

i
n
v
e
s
t
t
h
e
d
i
f
f
e
r
e
n
c
e

All of your assets (all items of financial value)

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

41

d e s t i n e d
joh n

f o r

c oc k toas tin s

w e a l t h

ne t

wor th

re p or t

ASSETS as of 12/31/07

Account/Bucket

Balance

Cash and Bank Accounts


ABC Bank
ABC Savings (vacation)
Credit Union
Imagine Checking
Kemper Funds

$
$
$
$
$

1,000.00
250.00
500.00
168.00
1,500.00

Total Cash and Bank Accounts

3,418.00

Other Assets
1999 VW Jetta
Furniture
Jewelry
Personal Items
San Diego Home

$ 4,000.00
$ 10,000.00
$ 5,000.00
$ 20,000.00
$ 700,000.00

Total Other Assets

$ 739,000.00

Investments
401K
Presidential Brokerage

$
$

7,000.00
2,750.00

Total Investments

9,750.00

example
Total Assets
Liabilities
ABC Mortgage
Jerome's Furniture

$450,000.00
$ 1,500.00

Credit Cards
Corning Credit Card
Citibank Visa
Nationsbank
Nordstroms

$
$
$
$

Total Liabilities

Overall Net Worth Total


42

$748,750.00

6,000.00
3,000.00
2,500.00
1,000.00

$464,000.00

$284,750.00

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

d e s t i n e d
j ohn

c ock t oast in s

f o r

w e a l t h

c r iti ca l

mas s

re p or t

Critical Mass as of 12/31/07

Account/Bucket

Balance

Cash and Bank Accounts


ABC Bank
Credit Union
Kemper Funds

$
$
$

1,000.00
500.00
1,500.00

example
Total Cash and Bank Accounts

3,000.00

Investments
401K
Presidential Brokerage

$
$

7,000.00
2,750.00

Total Investments

9,750.63

Total Assets

12,750.00

Total Critical Mass

$12,750.00

Your ability to be financially independent is in direct proportion to the amount


of money you need each month and each year to cover your expenses.
CHRIS HENDRICKSON

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

43

d e s t i n e d

f o r

w e a l t h

n ot e s

44

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

d e s t i n e d

f o r

w e a l t h

session 4
part 1
CLO
P UTTIN G
F O R

SIN G

Y O UR

TH E

AP

OF F ENS E

F IN AN C IAL

TO

W O R K

IN DEP EN DEN C E

The greatest thing in the world is not so much


where we are, but in what direction we are moving.
OLIVER WENDALL HOLMES

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

45

d e s t i n e d
t he

g ame

f o r

w e a l t h

o f

mone y

How to Win the Game of Money


Pure and simple money is a game, a game you can master and win. Like any other
game, there are guidelines, rules and strategies to improve your chances of performance
and ultimately success, which in the financial world can be defined as being financially
independent.
You cant really pick one specific game to use as a metaphor to describe finances. In some
cases it is like football, where there is an offense and a defense trying to move the ball
(money) to the goal line (financial independence). It has similarities to Chess or Checkers
in that you must not only make many decisions but you must think out the consequences
of those decisions in advance. One could argue its like basketball because, if you make
a mistake (a missed shot) you have to rebound as soon as possible to keep in the game.
Its like golf in that most of your strokes (spending) are on the little shots (putting) that
we feel dont add up to much, when in many instances they are a majority of our score.
In my years of research, I have found that most people who arent winning, are playing
the game like Pin the Tail on the Donkey only with one caveat, the Donkey is moving
around on the wall. This is representative of the moving target many people have
because that have not clearly defined what it will take to win. These undefined goals
keep changing throughout the game making it impossible to hit the target. To add to this,
you are blindfolded while trying to hit this moving target and this is representative of
people who cannot see the path before them or the vehicles that will help them get
where they want to go.
To win the game, we must define what we want (center that donkey on the wall in front
of us), learn the rules and understand the most important areas to focus on for
improvement (remove the blindfold) and take action towards our dreams. You have to
have an offense and you have to have a defense and you must strike a balance between
these two different aspects of the financial game to have ultimate victory.

When you dont try very hard, winning doesnt feel very good
and losing doesnt hurt that much
D ICK VERMIEL

46

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

d e s t i n e d
8

p lan s

f or

f o r

w e a l t h

f ina nc ial

su c ce s s

The 4 Offensive Game-Plans


Income Plan
You must have a plan for adding value to the marketplace
in exchange for income. In addition, you must focus on
providing a future income and learn to leverage yourself
(earn money while you sleep).

Savings Plan
Just like a spending plan, you must decide in advance how
much money you will save every year no matter what based
on a proposed income and commit to that plan every month.

Investing Plan
You must understand the different markets, the sector of
those markets, the industries within these sectors, and the
climate of each industry. You must also understand the
different investment vehicles that are available and how to
allocate these vehicles.

Monitor & Measure Plan


In order to know where you are, you must keep track every
week, month and year. You must create a system for knowing
exactly where you are compared to where you want to be
ultimately. You must schedule a time to use this system.

note

To win the game of personal finance, you must


have a strong o f f e n s e as well as a strong d e f e n s e.

Money has no ally, it seeks its best use!


D AV I D D A R C A N G E L O

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

47

d e s t i n e d

f o r

w e a l t h

n ot e s

48

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

d e s t i n e d

f o r

w e a l t h

offense plan #1

income

CLO
P UTTIN G
F O R

SIN G

TH E

Y O UR

F IN AN C IAL

AP

P LAN S

TO

W O R K

IN DEP EN DEN C E

Unless a man believes in himself and makes a total


commitment to his career and puts everything he has into it
his mind, his body, his heartwhats life worth to him?
VINCE LOMBARDI

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

49

d e s t i n e d
offe n se

f o r

p lan

w e a l t h

# 1-

inc ome

In order to affect your income, you must first understand and utilize six critical areas of focus
that will control and determine how you do financially. They are all vital to affecting your
income as well as helping you to become the person you want to be along the way.

Economic Alchemy
The first is having a basic understanding of the laws of economics. A basic and simple
truth, about income is this; you will be paid in direct proportion to the value you add to
the "marketplace". Two of the most brilliant economists of our day are Paul Zane Pilzer
and Harry S. Dent. I highly suggest you familiarize yourself with their philosophies of
what drives our economy and how we can prosper in any economic climate. Their material is highly "user-friendly" and will help you to master this vital area of focus.

Do What You Love!


The second is this, and I am sure you may have heard the saying "do what you love and
the money will follow." When you are doing what you are passionate about, with your
whole heart, in coordination with this simple truth, then you will be adding massive
value and you will see your income be positively affected. But if this were all we needed to do, then everyone would be making all the money they wanted.

The Marketplace Equals Reality!


The third, is understanding that, the "marketplace" is also known as "reality." What this
means is that the marketplace (i.e. reality) will tell you how much "value" you are
adding. If what you are doing is not considered that valuable, you will not get the financial results you are seeking. Reality tells us that one person can make 7 million dollars a
year to catch and hit baseballs, or shoot basketballs while a schoolteacher makes only
$30,000. Or that a person in an accounting department makes $40,000 per year, while a
sales representative, working similar hours, for the same company can make six figures.
The culture has decided what is more "valuable". Right or wrong, this is "reality" and complaining about it will not get you the financial results you desire. Who are the highest paid
people in our culture today? The answer is "entertainers". Entertainers, including sports
figures, movie stars, TV stars and recording artists make more than anyone because "we"
tell them they can. Were the ones who show up at the games and concerts, go to the
movies, get the "pay-per-view" events because we have decided its something of "value"
to us. Maybe well laugh or cry, celebrate or be moved emotionally, so we continue to pay
these people more than any other profession in the world.

Influence Your Way to Success!


The fourth area you must master is influence. Influence is defined as "The power to produce effects on others, or the ability to transfer emotion to others". In other words, to take
the same feelings you have for a product, service or idea that you feel is valuable, and
transfer that to others in order that they take some form of action. Influence has a series of
skills and techniques that can be learned, so that you may harness this powerful tool
to effect your income. I highly recommend a book by Robert Cialdini quite simply
titled, Influence.

50

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

d e s t i n e d
offe n se

f o r

p lan

w e a l t h

# 1-

inc ome

You will learn many skills on this fascinating subject and you can use them to immediately impact the earnings you make by having an impact on others. Another word for influence is persuade. Some people will actually consider these words or skills to be negative
by controlling others. What I have found is that the difference between influence or persuasion and manipulation is purely intent. In other words, what is the intent of the person
doing the persuading. If their intent is to help you and have a positive impact on your life,
then that is called influence or persuasion. If the y dont have your best interests in mind
and are doing it solely for selfish or negative reasons, then that is called manipulation. You
want to be a persuader, and person of influence of the highest caliber!

If You Want to Earn More, Learn More


This is one of my favorite quotes from an amazing mentor, Jim Rohn. Mr. Rohn has been
educating people and organizations around the world for more than 3 decades and he tells
us that reading, learning and growing is a vital key to our ability to earn. Make earning
more a study. There are many books available on this subject, and they are yours for a very
simple price at bookstores, or for the price of a library card. Ive made some recommendations for you on this subject, but it will be up to you to take these recommendations and
make them a part of your daily, weekly and monthly study.

Negotiating Your Way to Wealth


A great mentor in the art of negotiating, Roger Dawson, says it best "you never make more
money than you do while youre negotiating". Stop and think about this because its easy
to forget about this very useful tool. And the bigger the negotiation is, the bigger the "paycheck" will be. Lets use a simple example. Lets say your buying a car from a private
party and the seller wants $6000 for the car. You ask him if hell take $5500 right now and
he says maybe. You go back and forth for a minute and he says o.k.! You just saved $500
in one minute. Which means you made $500 in one minute, which equates to $30,000 per
hour. How would you like to make $30,000 per hour? You can! You can make more than
that. Use this formula when buying a house and see what happens to your "hourly wage".
Negotiating is a skill and it can be learned. Mr. Dawson teaches how to do this by using
the analogy of a Chess game. Like learning to play the game of Chess, you can learn to use
your negotiating skills to enhance your monthly and yearly income. I know you have
heard the saying, "a penny saved is a penny earned", make sure you use this by making
negotiating a skill you use regularly.

Be a Marketing Wizard!
The fifth skill you have to master in order to effect your income is marketing. You have to
have people to influence and the way you create and grow a business is through marketing. The laws of marketing are ever changing, especially in todays society, and you need
to keep up with the ideas and strategies, which are working in todays culture. Some of
the best books I have come across on this subject are any books by the team of, Al Ries and
Jack Trout. Some of their titles include, Positioning, Horse Sense, The 22 Immutable Laws
of Marketing and the more recent, The 22 Immutable Laws of Branding. Another bestseller
is Permission Marketing by Seth Godin, the Marketing Guru behind Yahoo.
Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

51

d e s t i n e d
offe n se

f o r

p lan

w e a l t h

# 1-

inc ome

If You Want to Earn More, Learn More


The sixth understanding is that, creating an income plan involves understanding the different types of incomes. At a very basic level, there are two types of incomes, and as we
more diligently focus on the first in our early working years, we also need to focus on the
second, so that we may remove ourselves from the first should we decide. Here are the
two types:
Working Income-This is where you exchange your time and energy in return for an
income, whether you are employed by someone or as a business owner. The problem with
this type of income, is if you do not put forth any effort or energy, the income will stop
immediately.
Passive or Leveraged Income-This is where you have created an income "while you sleep"
through some type of idea, product or distribution channel which does not require your
direct and constant involvement. Where your money is working for you in the form of
investment growth, capital gains, dividends and interest or adding value in some for of
service of others. In other words you have leveraged yourself to the point where you dont
work for money, your money works for you!
Another book I highly recommend on understanding income is The Cashflow Quadrant
by Robert Kiyosaki. Mr. Kiyosaki has been a fantastic role model for many people I have
known and his boardgame, Cashflow, like Monopoly can teach you lessons for a lifetime,
while you have fun and entertain yourself and others. Another great book in this area is
Learn to Earn by Peter Lynch. A phenomenal book on how to earn through investing.
Remember, the goal in being financially independent is to get to the point where your
lifestyle is completely supported or "dependent" on your passive and leveraged Income
streams and you do not have to "work" to rely on a lifestyle or an income. And if you do,
it is because you love to and want to, not because you have to! This is true financial independence!

Asking Better Questions


Another simple skill you can use to impact your income is a very simple tool, yet very
powerful. The biggest mistake people tend to make is asking the wrong question when
trying to increase their incomes. Most people ask the question "how can I make more
money?" When the primary question must be "how can I add more value to the marketplace?" The most successful people financially, ask this question wholeheartedly! Their
focus is on adding massive value to the world, not on "making money". When thinking
about your income, shift your focus to adding more value whether to your existing clients,
potential clients or the company you work for and you will see your income grow. A great
lesson I learned from Tony Robbins, the king of question asking, is this, your brain can ask
two kinds of "meta-questions". First, what should I do? And second, what does this mean?
When people are faced with the dilemma of not knowing what to do for a career or an
income, this is your brain telling you that it is not clear what it will mean if you make one

52

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

d e s t i n e d
off e ns e

f o r

pla n

# 1

w e a l t h
-

inc ome

Asking Better Questions (cont)


choice over another. This is a great opportunity to shift your question from what should I do? To
what will this mean to me if I do this? As you begin to ask this question, you will start to uncover
what your values are in a career and then you can begin to match a career, which will meet your
most important values. Remember that money is not what will make you happy ultimately, but living in accordance with your values, and adding value to the lives of others, this is what will make
you "wealthy".

exercise
How much do you currently make? (your total income) $__________.
How much do you want to make? (what is your ideal) $___________.
What is the gap between these? (subtract #1 from #2) $<________>.
There are only a few things that keep you from earning more:
!
!
!
!

Your Beliefs
Your Musts (otherwise known as your standards)
The value you are adding to the marketplace
Better quality questions or evaluations

The gap above (answer to question 3) is the cost of your limiting beliefs, standards or occupation you have chosen. Now is the time to make a decision about what you are committed to.
By taking the time to focus on what you really want and what you are committed to, you will
begin to ask new questions about how to make what you want your reality. In this exercise
some beliefs may have surfaced about income. If there is a large gap between what you are
earning and what you would like to earn, there will most likely be a feeling of discomfort that
comes with this gap. This is just another problem for you to solve, so you may want to go back
to section 3 and review the pages on beliefs and problems.
The goal isnt so much to solve this today but rather to embrace where you are and know that
you are moving in the direction of what you really want.

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

53

d e s t i n e d

f o r

w e a l t h

n ot e s

54

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

d e s t i n e d

f o r

w e a l t h

offense plan #2

savings

CLO
P UTTIN G
F O R

SIN G

TH E

Y O UR

F IN AN C IAL

AP

P LAN S

TO

W O R K

IN DEP EN DEN C E

The vision that you glorify in your mind,


the ideal that you enthrone in your heart:
this you will build your life by, this you will become.
JAMES ALLEN, AS A MAN THINKETH

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

55

d e s t i n e d
off e ns e

f o r

pla n

w e a l t h

# 2

sav ing

When it comes to achieving your financial goals, there is no more important plan, in the beginning, than
saving. Saving is what begins you on your journey to financial independence and there is no more
noble financial habit than the deliberate act of saving at least 10% of all that you earn. When you
save your money, we like to refer to the places you keep it in as buckets. Your buckets create a way
to store, prioritize, and allocate your money for savings into a specific account (i.e., a bucket) that has a
specific destination (savings/investing). This will help you to organize what you save and where the
money will be kept so that you will stay on your plan.

The Three Savings & Investment Buckets


bucket

security

This bucket is used for your Financial Assurance goal (6-60 months of living expenses) and
the beginnings of your Financial Independence goal. This money should be kept in a lowrisk/liquid environment such as a money market, CD or bank savings account. This money
is never to be touched as it is the basis of providing security for you and your family in the
form of a future income. You will also be building your retirement here, which will be kept
in long-term investment accounts such as IRAs, 401Ks, private pensions, annuities, and
SEPs. This money will be used to create a quality of life when you retire from work.

bucket

growth

The purpose of this bucket is to grow your portfolio at a higher rate of return. This is
done through long- and short-term investment vehicles such as stocks, mutual funds, and
commodities and usually kept in a money market between trading or during bear
markets. This usually means a greater risk so understanding the fundamentals of investing
is imperative for this bucket.

bucket
momentum

&

3
income

This Bucket is used primarily for trading and having a more aggressive income plan with
your investments. These are usually more short-term investments objectives such as options
trading, with goals such as daily, weekly and monthly returns for income. Again, this
usually means a greater risk of loss, so understanding the fundamentals and sophisticated
strategies of investing, and having a defense strategy, are imperative to the long and
short-term success of this Bucket. Allocating the income and gains you receive from this
Bucket should be taken into consideration. You can allocate a percentage into your Security
Bucket and/or Growth Bucket. Reinvest a percentage into your Momentum Bucket and even
set some aside in your 'Cookie Jars' for future expenses. Any monies spent must only come
from this Bucket and you must decide on a percentage and commit to it.

56

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

d e s t i n e d
joh ns

f o r

s avin gs

w e a l t h

p lan- e xa mple

1-5 Year Example


Critical Mass as of today: $5,000
Mo. Income: $4166

% Committed: 29%
Amount Committed: $1225

How much money will I accumulate by the end of:


Year:
Amount:

2009

2010

2011

2012

2013

$20,000

$35,000

$55,000

$80,000

$110,000

Why must I absolutely accomplish these goals?

example

When I get it, where will I keep it?


Current

Year End Goal

Needed

Monthly

ABC Bank

$1,000

$5,000

$4,000

$325

401K

$1,000

$3,000

$2,000

$170

Kemper

$1,500

$3,000

$1,500

$115

Presidential

$750

$5,000

$2,500

$350

Cred.Union

$500

$3,000

$4,250

$200

ABC Bank

$250

$1,000

$750

$65

TOTALS

$5,000

$20,000

$15,000

$1,225

Account

Wealth comes from a state of being grateful for what you already have!
ANTHONY ROBBINS
Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

57

d e s t i n e d
my

1- 5

y e ar

f o r

w e a l t h

s avin gs

p lan

1-5 Year Plan


Current Critical Mass: $__________

% Committed: _______%

Mo. Income: $___________

Amount Committed: $________

Amount of money I will have by the end of:


Year:

2009

2010

2012

2011

2013

Amount:
Why must I absolutely accomplish these goals?

When I get it, where am I going to apply it?


Account

TOTALS

Current Bal Year End Goal

Monthly

Needed

(This figure will be moved to your New Spending Plan on page 95)

58

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

d e s t i n e d

f o r

w e a l t h

offense plan #3

investing

CLO
P UTTIN G
F O R

SIN G

TH E

Y O UR

F IN AN C IAL

AP

P LAN S

TO

W O R K

IN DEP EN DEN C E

Its the action, not the fruit of the action thats important.
You may never know what results come from your action.
But if you do nothing, there will be no result.
GANDHI

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

59

d e s t i n e d
off e ns e

pla n

f o r
# 3

w e a l t h
inve s tin g

The Laws of Investing


It has been proven, over and over again, that the number one way to accomplish your financial
goals, at a greater pace, is through investing! Investing is defined as "to put (money, time, energy) to use in something offering profitable returns." This includes investing in oneself, and the
number one way to grow, personally and professionally, is to invest in yourself some form of
knowledge, information, technology, etc. This product, I am certain youll feel, is an investment
for you, as a tool to reach your financial dreams. I have also, throughout this program, made
many recommendations for books and other tools I feel would be a wise investment into your
financial future. You can never underestimate the value of one idea and what impact that idea
can have on an area of your life over 5 years, 10 years, 20 years and beyond. A valuable idea
focused on and practiced consistently, with compounded growth, can be a profitable investment
over time.
In this section, I would like to focus on the type of investing that will help you to accomplish
your specific financial goals, the critical result goals you established in section 2. Most people
will not actually earn enough money to purely save enough to reach their financial dreams. This
is not meant as a statement to place limitation on your earning capacity, but a perceptual look at
the numbers before you, and how they work towards your dreams and goals. By the time you
take out for taxes, lifestyle goals and all the expenses you acquire along the way, most people
wont reach their dreams purely by saving. The number one vehicle, proven over and over again,
is the Securities Market for investing. The market is made up of many indices (indicators) which
help us to understand where things are economically. The major U.S. indicators are:
1. The Dow Jones
2. The New York Stock Exchange
3. The NASDAQ
4. Standard and Poors 500

5. AMEX (American Stock Exchange)


6. Russell-2000
7. Treasury Securities
8. Commodities

In addition to the U.S. indicators, you must also consider the International indicators as well.
They can be easily organized into four groups, the Americas, Asia/Pacific, Europe and
Africa/Middle East. Among the major World indices are:
1. United Kingdoms FTSE
2. Japans Nikkei

3. Chinas Shanghai
4. Hong Kongs Hang Seng

In addition to understanding these different markets, we need to understand the different investment models, which will help us to create an effective plan which will insure our own personal
economic growth. The biggest challenge we face is that there are many investment models available and choosing the right ones that will maximize our ability to get great returns on our investments gets lost in the mass of information available. This product is not designed to teach you
how to invest your money, but rather to assist in making YOU responsible for the investment
choices you do make, and to assist you in making investing a focus. Remember I am not a financial advisor, I am just your coach in making your dreams come true, whatever they are.

Never put more than 10% of your portfolio in any one investment
S I R J O H N T E M P L E TO N

60

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

d e s t i n e d
off e ns e

f o r

pl an

# 3

w e a l t h
inve s tin g

The Vehicles for Investing


1. Private Business
2. Stocks
3. Mutual Funds
4. Real Estate
5. Money Market or CDs

6. Currencies (domestic & foreign)


7. Commodities
8. Treasury Securities
9. Bonds
10.Yourself (through personal growth)

Investment Mentors
We all need mentors in the financial arena, we just need to make sure that these mentors are getting the results that we desire in our own life (again, not asking the overweight person, how to
be healthy). What all these different methods create, is a way to duplicate results and increase
your chances of winning vs. losing in the stock markets, by making effective evaluations. There
are many outstanding financial role models. The top 10 mentors I have had the privilege to
learn and grow from are listed below, and their system, or psychology they use to produce outstanding results.
1.
2.
3.
4.
5.

Peter Lynch-How to Beat Wall Street


Warren Buffet-How to buy Value
John Templeton-The Laws of Wealth
The Motley Fools Guide
Robert Prechters Elliot Wave Principle

6. Tom McCarthy Bullseye Method


7. William ONeills C.A.N.S.L.I.M. Method
8. Bill Statons Americas Finest Companies (AFC)
9. Harry S. Dent-Understanding the Economy
10.Charles Mellon-Invest your way to Wealth

In addition to these different mentors, is the different "models" of investing in the Securities
Market. From the most basic of evaluations, like Bill Statons Americas Finest Companys to the
"Buy and Hold" strategies to the more sophisticated "Momentum" style of daily trading for an
actual income.
It is important to know the options available to you as an investor, and which style you are
able to capitalize on to get the best results possible. Some people dont want to focus on daily
trading where as another person may be totally motivated to do so. It depends on your goals and
how aggressive you want to be with them. Think of it this way, if you seek a yearly or annual
return thats what you will get. If you seek a weekly or daily return, you will get that too. It all
depends on the investment goals you set for yourself. As you preview the goals you wrote down
in Section 2 of this program, make sure you set some investment goals for yourself. These will
be Pathway Goals that will help you to expedite your Critical Result Goals quicker, or they may
even be Lifestyle Goals as well. I have a close friend who has a goal to pay for some exercise
equipment he purchased on a "1-year same as cash" program. He has his "cookie jar" set up to
pay for it as well, but he is also seeking an investment return on a certain amount placed in the
market. If he reaches that goal, he will take his gains and pay for the equipment purely from
money he made investing. He can then use his cookie jar money for something else. If he does
not reach the investment goal, he is prepared either way.
Making investing a study will prove to be one of the greatest investments in your time and
focus. Everyday people accomplish new financial heights purely through their focus in the securities and or real estate markets. I know a gentleman personally who started with $9000 in
October of 1997 who, with some additional savings, has built his portfolio to over 1.2 million dollars in less than 2 years. All on a school teachers salary! Anything is possible if you make it a priority and a focus to accomplish your dreams.
Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

61

d e s t i n e d

f o r

w e a l t h

n ot e s

62

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

d e s t i n e d

f o r

w e a l t h

offense plan #4

monitor & measure


CLO
P UTTIN G
F O R

SIN G

TH E

Y O UR

F IN AN C IAL

AP

P LAN S

TO

W O R K

IN DEP EN DEN C E

The greatest thing in the world is not so much


where we are, but in what direction we are moving.
OLIVER WENDALL HOLMES

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

63

d e s t i n e d
off en se

p lan

# 4

f o r

w e a l t h

mo nito r

&

me a su re

Being Off Course


Did you know that when you fly in an airplane, or drive in a car, you are off course more than 90%
of the time? Things like fuel, wind, weight, tire pressure, curves or bumps in the road, even when
someone gets out of their seat to stretch their legs will blow an airplane off course! In the financial game you will get off course, this is guaranteed. In fact, staying on course is nothing but the
process of constantly correcting being off course. However, this area of focus will assist you in
staying on your plan by checking in regularly. You cant measure what you fail to monitor.
Remember, the more you check in, the more likely you are to stay on course! I have provided two
tools for you to use in keeping your focus in this area, first a Monthly Sheet for Savings &
Investment Deposits and second a tracking sheet for your Daily and Weekly Expenses. The
monthly sheet was about the most valuable tool I used when I got started on my savings and
investing plans. It summarizes all the commitments you make into one sheet and as you make
those deposits, you can check them off month-by-month.
In evaluating how much time/attention should be placed on your monitor & measure plan, you
have to go back to the beginning of this manual and take a look at your scores in the evaluation
model. If you scored quite low, then you will need to put more attention into this part of your plan
to keep things from getting worse. On the contrary, if you scored quite high, this may be due to
the fact that you are already using, at some level, a system of checking in that requires no more
effort in this area.

Weekly, Bi-Weekly and Monthly


!

Spending

Income

Major Expenses

Saving

Pay down Debt

Quarterly
!

Investments

Yearly
!

Taxes

Protection

The critical issue here is to never go more than 1-year in any of the 7 other areas of financial management without checking in and asking the question: do I need to make some changes or
improvements in this area to help me acheive success now? Remember that, the more often you
check-in in any particular area only allows you to make any corrections sooner rather than later
which can certainly help you avoid potential disasters and to be able to celebrate success as well.

64

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

d e s t i n e d

f o r

w e a l t h

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

65

d e s t i n e d

66

f o r

w e a l t h

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

d e s t i n e d

f o r

w e a l t h

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

67

d e s t i n e d

f o r

w e a l t h

n ot e s

68

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

d e s t i n e d

f o r

w e a l t h

session 4
part 2
CLO
P UTTIN G
F O R

SIN G

Y O UR

TH E

AP

DEF ENS E

F IN AN C IAL

TO

W O R K

IN DEP EN DEN C E

Offense sells tickets, defense wins Championships


JOHN MADDEN

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

69

d e s t i n e d
8

pl ans

f or

f o r

w e a l t h

fi nan cia l

s uc c e ss

The 4 Defensive Game-Plans


Debt & Major Expense Plan
There are 2 types of debt plans.
1. Getting out of debt plan
2. Staying out of debt plan (Otherwise known as an Expense Plan)
If you are not utilizing either, you will lose the game of financial success!

Spending Plan
You must decide in advance where you will spend your money.
In addition to this, you must have a way of tracking what you
spend, so you can adjust habitual spending that is not supporting your savings & investing goals.

Protection Plan
You must intelligently and legally protect yourself, your
family and your income from any outside forces that can blow
you or your plan off course.

Tax Plan
You must work towards keeping as much of the income you
earn by understanding the tax codes which legally and
ethically allow you to avoid as much tax as possible.

note

Its what you k e e p, not what you make,


that determines your financial success.

Gold avoids those unwise in its use.


G E O R G E S. C L A S O N

70

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

d e s t i n e d

f o r

w e a l t h

defense plan #1
debt & major expense
CLO
P UTTIN G
F O R

SIN G

TH E

Y O UR

F IN AN C IAL

AP

P LAN S

TO

W O R K

IN DEP EN DEN C E

If a man has within him the soul of a slave


will he not become one no matter what his birth?
GE O R G E S. C L A S O N

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

71

t he

# 1

d e s t i n e d

f o r

k ill e r

f in anc ia l

of

w e a l t h
su c c es s

The number one obstacle to reaching your financial dreams, other than your belief systems
about money is the expense of carrying debt.

Violating the Golden Rule


If you really stop to think about it, getting in debt is just exactly the opposite of the golden rule of financial success (spending less than you earn). Simply put, getting in debt is
spending more than you earn, and borrowing the difference at a high rate of return. Just as compound interest can support you in reaching your financial goals through growth, interest
on borrowed money will do the opposite and most definitely at a higher rate.

A Dollar is Not a Dollar


Let me share an analogy with you. Imagine you and I are standing side by side in the middle of a staircase, and at the top of the stairs is your financial destiny, true financial independence and at the bottom of the stairs is poverty and financial despair. When we receive
income and I take one dollar and invest it into a money market or basic savings account I
take one step up. When you take your dollar and apply it towards your debt, if the dollar
is applied to the actual principal balance of your debt you will stay on the same stair but
when that dollar is applied to the interest payment on your account, you actually take one
step down making the difference between us two stairs (or two dollars). If you learn nothing else from the material in this book but this one concept it will be worth your weight in
gold because every dollar that goes to pay an interest expense costs you two dollars
towards your dreams. Imagine the dollars that you pay towards just one credit cards
interest every month. Is it twenty?, thirty?, maybe even $50 dollars? Just double that figure and this is what the true cost is towards your financial dreams.

Learn to Say No
The 3 most dangerous words in marketing language are low monthly payments. We get
hypnotized by the lending industry to believe that the consequences of our choices our
minimal because of the low amount of commitment they ask us to make with each
financed purchase. If we stopped to see what we were really spending overall on a purchase, we would be more focused on the negative consequence of our choices. In some
purchases, mostly larger ones like homes, cars and personal loans, we receive a document
called a Truth in Lending disclosure which shows us the true cost of the borrowed purchase.

Managing Your Instant Gratification


The consumer credit industry is an entity that purely plays on our need for instant gratification. Why wait for that dream vacation when you can have it right now on your
Mastercard? Again we get seduced into the low monthly payment mentality rather than
taking the time to plan our expenses and set up what we want as a reward after we have
made the goal. Utilizing the cookie jar strategy is the way out of this downward spiral
and help us to make the most of our hard earned dollars while enjoying the process which
is my goal for you.

72

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

d e s t i n e d
di ff e re nt

f o r
ty p e s

w e a l t h
of

de b t

Remember that at its core, debt is simply overspending and it can be classified into three types of
spending patterns, Reasonable, Problematic or Compulsive.
Reasonable debt is typically debt that is used more for investment type purchases or for tools that help
you to lead a more productive life. Problematic debt is usually debt that comes from us telling ourselves we need something right now and we have convinced ourselves that it is okay to make the purchase because we may have planned it out in advance (i.e. when I get my raise I am going to buy that
new stereo on credit) but it still creates this problem known as interest expense. Compulsive debt is
usually marked as spending that comes more frequently, adds to your problem and has no plan to it
whatsoever. You are walking down the street, you see a new outfit in the window and you make the
purchase without considering the consequences.
This type of spending is usually addressing some sort of emotional void like the person who is overweight (problem debt) but continues to overeat to feel better. Either way the consequences can be
devastating! Below are the different types of debt you can acquire, starting with the more reasonable
and working its way down to the more compulsive.

Home Mortgage/Auto
Mortgages and auto loans are considered reasonable because they become tools for
investment or production. Both can be problematic or even compulsive if abused.
For example a second mortgage may be problematic and a third mortgage may be
compulsive.

Business Debt/Student Loans


Both of these types of debts are reasonable in their nature, again the frequency and
overall circumstances have to be considered.

Credit Cards, Retail Installment


Unless you pay your balance each month, it would be hard to justify that these types
of debts are reasonable. They are very much problematic in nature and can very easily become compulsive. This includes Department Stores and Gas cards.

Personal Loans/Liabilities
Like credit cards this type of debting is simply problematic and again, can easily
become compulsive. This would include Medical Bills and IRS back taxes or Liens.

Paycheck Loans/Loan Sharks


There is only one way to define this type of debting COMPULSIVE! If you are using
this type of service then you arent even living paycheck-to-paycheck.

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

73

d e s t i n e d
s tag g e rin g

f o r

w e a l t h

st atis tic s

ab out

de b t

Consumer debt, is the bubble about to burst?


!

Americans are dealing with 1.93 trillion dollars in debt (not including mortgage debt).
On July 21, 2002 the largest
1 business bankruptcy ever was filed. Total assets for Worldcom,
Inc. was $103,914,000,000
. In addition, Enron Corp. filed on 12/2/01 for a total of
1
$63,392,000,000 .

Americans borrowed approximately 200 billion from their home equity in 2005.

The total average credit balance owed by an individual is $9312, up 35% from 1999.

The average credit card interest rate still remains around 14.7%

If your credit card balance is $8000 and you make the minimum monthly payment each
month at 15% APR, it will take you 37.3 years to pay off the debt. You will have spent
$12,789 in interest.
If you made a fixed payment of $160 (2% of original balance) it would take you 6.6 years
and cost you $4632.96 in interest, a savings of more than $8100.

The average household has 10 credit cards.

More than 500 million credit cards are issued annually in North America.

Every year since 1996, more than 1 million households have filed for bankruptcy relief.

In 2005, 2,053,000 Filed for Bankruptcy protection, a 31% increase over 2004 (1.5 million)

Current estimates tell us that 5 Billion offers are made each year, thats an average of 20 per
person regardless of credit history.
The causes of financial problems, found by the AICCA are as follows:
#1. Excessive use of credit (38%)
#2. Reduced income or unemployment (25%)
#3. Poor money management (14%)
#4. Divorce or separation (9%)
#5. Other (14%)

1. Source: BankruptcyData.com

The sentence youre paying is too high-priced when youre living beyond all your means,
and the man in the suit has just bought a new car from the profit he made on your dreams
STEVE WINWOOD

74

FROM

T H E L O W S PA R K

OF

HI G H - H E E L E D

BOYS

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

d e s t i n e d
6

mas te r

st e ps

f or

f o r

w e a l t h

e ndin g

con su me r

de b t

Get Leverage on yourself/Feel the pain


You must associate to all that it has cost you to be in debt. (i.e., the lack of freedom, the
cost of interest, the struggle to meet your monthly obligations). You must link massive
pain to these consequences and become very uncomfortable with your current situation.

Interrupt your Past/Current Spending Pattern


Remember, its not the credit cards fault. The only way we get into debt is by violating
the financial golden rule: Spend less than you earn.

Create an Effective Plan to Pay it Off


You must utilize the military strategy Massing of Forces. You must decide how much
you are going to pay, to whom and by when the debt will be paid off. Be sure to pay the
highest interest rates first as these are creating the most damage. You must pay more
than your minimum payments.

Measure and Monitor your Plan


Follow through on your plan and check in at least once per month to make sure you are
keeping your commitments. Remember, if you check in once per year, you can have a
bad year, if you check in once per month, you can only have a bad month.

Utilize the Cookie Jar Strategy


You must decide in advance what you are going to spend your money on (major purchases and expenses) for the upcoming year, and save each paycheck or each month for those
expenses.

Create Compelling Financial Goals


In chapter 2 you created your Critical Result Goals. You must be associated to these
goals and believe they are achievable so you are compelled beyond merely getting out
of debt.

I place debt among the greatest of dangers to be feared


THOMAS JEFFERSON

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

75

d e s t i n e d
six

me th ods

fo r

f o r

w e a l t h

g e tt ing

ou t

of

de bt

Getting out of debt is not an easy task especially when the amount of debt responsibilities you have far
surpass your income and abilities to repay. A lack of clear options reinforces fear, procrastination and
sometimes humiliation and anger. Taking responsibility mixed with effective strategies and clarity of
your options will help one take action and create a positive momentum towards eliminating your debt
obligations once and for all.

Debt Consolidation and/or Real Estate Refinance


This is done by qualifying for one or more larger loan(s) and then paying off many of your creditors
simultaneously, wrapping these into one higher balance loan or credit card or mortgage.
Upside
In some cases lowers your interest rate (especially on real estate refinance) depending on timing
and market conditions.
!
Lowering the number of creditors and payments you have to pay each month.
!
Lowering your monthly payments, creating relief from high payments that exceed your budget.
!
Mortgage interest can now be applied to reduce your taxable income.
!

Downside
Sometimes you will pay a loan processing fee, or a higher interest rate, depending on your
credit history or market conditions and timing.
! Can create a false sense of less debt because they only have one bill instead of the many they had
prior to the consolidation.
! In most cases, when you lower your payment, you will increase the amount of time you are paying on your debt creating yet another false sense of success.
! Loss of positive equity in your home investment.
!
You may not qualify for a loan, or have to give up collateral or get a cosigner..
!
Unless the problem is cured at the source (overspending) you will charge your balances back up
and wind up having the bigger consolidated balance but all the new debt payments as well.
! You can wind up losing your home or personal property to foreclosure.
!

Bankruptcy Chapter Seven known as a liquidation or straight bankruptcy


Upside
You can virtually eliminate all of your unsecured debt in a matter of days.
!
Protect yourself from harassing creditors.
!
You will be able to keep most of your possessions.
!
Can remove and discharge liens from secured assets (like a home)
!
Alleviate stress that comes with the inability to repay.
!
You can reaffirm certain debts to keep the asset.
!
Can create a fresh start if utilized properly.
!
Does not completely eliminate you from the credit market. Usually you can get back in
within one year (this could also be considered a downside).
!

Downside
This can create a lack of self-esteem from knowing you did not fulfill your obligations.
!
Will create poor credit ratings for 10 years.
!
Will become a matter of your public record indefinitely.
!

76

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

d e s t i n e d
s ix

m e thod s

f or

f o r

w e a l t h

g e tti ng

ou t

of

de b t

Downside (cont)
Will not create relief from secured debts.
!
Can make future borrowing more difficult (which may not be so bad).
!
Can force you to live on a cash basis (which again, may not be so bad).
!
Attorney fees and legal costs (anywhere from $300-$1500).
!
Relying on someone else to handle (may get bad advice).
!
Passing responsibility to the legal system.
!
You may not qualify (income limitations, i.e. you earn too much).
!
You may lose secured assets to liquidation (i.e. furniture, car, etc).
!
May not eliminate certain taxes (less than 3 years old).
!
May not eliminate student or education loans.
!
Will most likely mean higher interest rates for you in the future.
!

Cont

Bankruptcy Chapter Thirteen known as a consolidation bankruptcy


Upside
Can be used when one is behind on a mortgage or other secured debt.
!
Protect yourself from harassing creditors.
!
You will be able to keep most of your possessions.
!
Alleviate stress that comes with the inability to repay.
!
Can remove and discharge liens from secured assets (like a home).
!
Court controlled repayment plan your creditors must allow.
!
Can help people who have a sudden loss of income (from an injury, illness or job
loss) but are now back working, and although behind, have the ability to repay.
!
Does not completely eliminate you from the credit market. Usually you can get
back in within one year (this could also be considered a downside).
!
Can create a sense of pride from paying back at least a portion of your debts (as
determined by the courts).
!
Lets your attorney handle all of the legal issues and communication with
creditors.
!

Downside
Payments can be deducted from your payroll so your employer will know you filed.
!
Will create poor credit ratings for at least 7 years.
!
Will become a matter of your public record indefinitely.
!
Can make future borrowing more difficult (which may not be so bad).
!
Can force you to live on a cash basis (which again, may not be so bad).
!
Attorney fees and legal costs (anywhere from $300-$1500).
!
Relying on someone else to handle (may get bad advice).
!
Passing responsibility to the legal system.
!
You may not qualify (income limitations, i.e. you earn too much).
!
You may lose secured assets (i.e. furniture, car, etc).
!
May not eliminate certain taxes (less than 3 years old).
!
Will most likely mean higher interest rates for you in the future
!
You can receive low interest rates therefore increasing the amount of money paid to
the principal balance, albeit for a short time (usually 30-90 days).
!

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

77

d e s t i n e d
si x

me t hods

f or

f o r

w e a l t h

ge t tin g

out

of

de b t

The Rollover, Power Down or Snowball Method


This is one of the most popular and effective strategies to assist you in getting out of debt.
Most quality organizations teaching you how to get out of debt will utilize this method
and although the principle and strategies are the same, you will hear different names to
describe the same philosophy and process.
Upside
!
You put the majority of your focus on one debt at a time.
!
You make debt freedom a priority.
!
You eliminate your smallest debts first lowering the number of creditors you pay
each month as fast as fast as possible.
!
You dont need any additional money above your minimum payments to get started.
!
You get an immediate sense of accomplishment by eliminating your smallest debts
first which can create a positive momentum in the right direction.
!
You increase your net worth each month.
!
Doing this on your own gives you a sense of pride and total personal responsibility.
!
You pay the same amount each month until you are completely out of debt.
Downside
!
You may postpone higher interest rates for smaller balances but in most cases the
overall financial impact can be minimal.
!
You are instructed to pay off certain bills first (based on lowest balance) not taking
into consideration your own personal motivation.
!
This will have an impact on your lifestyle because you continue to pay the same
amount (even though your debt payments are reduced over time) until you are
completely out of debt.

Chasing Lower Interest Rates


This is done by continuing to obtain lower interest rates, usually through introductory
rates or special offers. The goal is to payoff higher rates with lower rates via bank and
credit company promotions.
Upside
!
You can receive low interest rates therefore increasing the amount of money paid to
the principal balance, albeit for a short time (usually 30-90 days).
Downside
!
You will wind up spending your valuable time filling out Credit Card Applications
and moving money around constantly.
!
In addition you need to constantly focus on when the interest rates are adjusted
upward so you know when to repeat this process.
!
The bottom line is, it is a lot of effort for very little reward and you are not focused on
the outcome which is to get out of debt.

The greatest approach is that which works


UN K N O W N

78

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

d e s t i n e d
si x

me t hods

f or

f o r

w e a l t h

ge t tin g

o ut

of

de b t

Debt Relief, Reduction & Negotiating Services


This is done by retaining companies like Consumer Credit Counselors, Debt Fre e ,
Ameridebt, etc. and while having a fair amount of good intent, they are playing off of your
own lack of education and personal responsibility.
Upside
!
Lower balances owed or lowered interest rates through negotiation.
!
You might make one payment to your counselor and they pay all your bills for you.
!
They can get your phone to stop ringing with harassing creditors.
!
Banks and credit companies may work better with a professional than they will
with you.
Downside
!
The amount your debt is reduced (in excess of $600) can be added to your income in
the form of a 1099 and you can wind up owing taxes if you have a positive net worth.
!
Many of these companies are scams collecting high and/or hidden fees and charges.
!
This strategy can create a lack of taking responsibility for your actions and therefore
a lack of pride and self-esteem.
!
Plans created for you can sometimes not be in your best interest.
!
Their education services make you a victim, fallen to outside forces rather than
understanding where the real problem starts (overspending).
!
Lack of follow up service can keep you out of the loop on what is happening.
!
Your credit rating suffers because you are instructed by the negotiator not to pay
during the period they are working with your creditor.
!
Student loans can not be negotiated since they are Federal loans.
!
You will lose the privilege of further credit from your former lenders (may not be
so bad).

Run & Hide


This is simply the strategy of running away from your responsibilities and hoping they
go away without your having to repay. Some people accomplish this by going AU
(address unknown) on their creditors until the creditor simply writes the debt off as a loss
and gives up on trying to collect.
Upside
!
Relief from payments (although most likely this will only be temporary).
Downside
!
Your credit rating will be destroyed.
!
Most likely your creditors will find you.
!
This strategy does not relieve you from your debts.
!
Would be viewed by most people as a cowardly way to handle your responsibilities
and will put a negative energy into your financial universe (what comes around,
goes around).

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

79

d e s t i n e d
the

5 -M inu te

f o r

w e a l t h

D eb t

So lut ion

Now that we have looked at all the possible methods, lets put them together into one simple strategy
utilizing the upside of each method described while eliminating any downsides.

apture
Capture all your debts onto paper (you can use the worksheet on page 85) or computer program (Excel, Quicken) with who you owe, how much you owe, the interest rate and the
minimum monthly payment. Wherever possible, consolidate any balances into the lowest
possible interest rate. Communicate to any creditors who you are behind that you promise
to pay as much as possible, catch up any past due amounts or want to work with them on
an alternative plan.

esolve
This step is critical as this is where you must get honest with yourself and realize what you
have done to yourself and resolve that you must turn this around now. Remember that
pain is your friend as this is where your motivation and drive can come from. You must
brainstorm why (reasons) you must get out and stay out of debt and make a decision to live
on a cash basis no matter how tough things get. You must also have compelling saving and
investment goals beyond getting out of debt.

xecute
Utilize the Massing of Forces strategy (a.k.a. the snowball or power-down method) by paying the minimum monthly payment on all but one of your debts. This becomes your #1 target for elimination. See page 80 for how to make this determination.

ecide & invest


Decide on an amount over and above your minimum payments (i.e. 5-15% of your gross
monthly income) and commit that amount solely to your #1 debt. This will become your
Debt Elimination Accelerator or DEA. Cut any unnecessary expenses to free up more
cash and become determined to apply (invest) this additional money.
Invest any additional monies towards your #1 debt (i.e. overtime pay, bonus, cash gifts,
money from 2nd jobs, tax refunds, inheritance, winnings, etc.). If these inflows of money
are predictable, make the commitment in advance to do this before the money is squandered away.

erminate
Pay consistently on your plan, and when you payoff your #1 debt, trickle down the payment from that debt, including your DEA, to the next one on your list and so on until they
are gone. Remember its okay to celebrate but remember your #1 outcome, which is to get
out, and stay out forever. You want to continue and pay the same amount every month
until your debts are gone! Once completely out of debt you will transfer the money being
applied to your debt payments to your savings, your cookie jars and give yourself a
lifestyle increase within reason.

80

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

d e s t i n e d
de f e ns e

pl an

# 1

f o r

w e a l t h

g e t

ou t

of

de bt

Take a look at these scenarios that more clearly illustrate


the negative impact of carrying consumer debt!

example

If person A carries an average balance of $5,000 on his credit card annually, he will pay an
average of $841 per year in interest and have nothing to show for it at the end of the year. At
the end of 5 years, he will have paid $4,205 in credit card interest.
If person B, by making a decision to not spend more than he earns, accumulating the $841
per year and investing it in a simple money market account, he would have accumulated
$833.05 at the end of the first year, and would have $4,879 by the end of 5 years including
critical mass is $9,879 at the end of 5 years! Remember, person A still has the $5,000 in debt
at the end of 5 years.

example

Person A wants to go on a vacation. So he travels to Hawaii for a week and charges up to


$5,000 on his credit card. He then proceeds to pay the minimum payments over 5 years to
pay for his vacation. The total spent for his vacation is $7,300.
Person B decided in January 1995 to go on vacation in January 1997. She has saved $4,327
over 2 years (approx. $180 per month). With her interest, she now has $5,000 and pays cash
for her vacation. Same vacation, but person A paid approx. $3,000 more than person B.
Person B could use this $2,800 towards her next vacation!

example

Person A buys a 1997 Toyota Celica for $17,000 with a bank loan for 5 years. His total cost
for this car at the end of 5 years is $21,500 ($275 per month).
Person B buys this same car in 1998. The car has had a previous owner for 1 year and has
20,000 miles on it. Total cost is $12,000. Person B has been saving $142 per month for this
car for 3 years and his total money out of pocket was $11,000. Person A paid nearly twice
as much for the same car.

Its not what we owe, or even the interest rate that makes the difference.
Its how we pay that has the biggest impact.
C H R I S P. H E N D R I C K S O N

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

81

d e s t i n e d
4

f o r

way s

t o

w e a l t h
p ay

Remember that our #1 objective is to get out as fast as possible for the least amount of interest expense.
In doing so, there are 4 strategic ways you can approach your debt. You must create a hierarchy using
a criteria that gives you the maximum advantage. Below are 4 options for how to create you gameplan.

Pay the highest interest rates first


Mathematically this makes the most sense as these accounts are doing the
most damage through higher costs. We typically recommend this as your
primary criteria but there could be reasons the options below might work
better for you and your circumstances. I would certainly recommend this as
a secondary criteria at the least.

Pay the lowest balances first


The reason this approach is recommended is because you will eliminate the
smaller balances quicker. This gives you a much faster sense of accomplishment because you could see one or more debts disappear quickly. It also
activates the snowball effect quicker by moving your monthly payment
from debt #1 to debt #2 plus your DEA.

Pay the balance with the fewest payments left


Some recommend this approach, which is similar to the approach above
with similar types of benefits.

Pay the balance you are most motivated to pay off


This could be the most powerful approach for some people. When you capture your debts
(step #1 in the CREDIT method) I would highly encourage you to ask this question as a
primary approach: Is there one debt on this list I am most motivated to payoff? Remember
the more reasons and motivation, the more likely your follow through which in turn will
give you a quicker sense of accomplishment regardless of the interest rate or balance
owed.

Someday soon well stop to ponder,


what on earths this spell were under,
we made the grade and still we wonder, who the hell we are
STYX,

82

FROM

THE GRAND ILLUSION

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

the

#1

d e s t i n e d

f o r

k ille r

f ina nc ial

of

w e a l t h
s u cc e s s

If the outcome is to get out as fast and inexpensively as possible, lets take a look at the different options
of how we can pay. We have 3 choices when it comes to paying back our debt. We can be hypnotized
by the banks and credit card companies and make minimum payments. We can set our own fixed payments and we can choose to accelerate our fixed payments with additional monies.

Creditor/
Debt

Option 1: Paying the minimum each month


Balance
Minimum Interest Time to pay
Owed
Mo. Pmt.*
Rate
off*

Total
Expense

Nordstroms

$1,000

2%

16%

187

$1329

Credit Union

$1,500

2%

15%

225

$1956

Household Bank

$1,000

2%

12%

139

$697

Discover

$3,000

2%

17%

394

$6448

BofA

$2,500

2%

17%

363

$5233

Ford Motor

$12,710

$387

6%

36

$3199

Citibank

$2,500

2%

14%

268

$3055

Jerome's Furn.

$1,500

2%

18%

313

$3431

TOTALS

$24,710

Revolving

1925

$25,348

example

*Remember the key to this method is for the banks and finance companies to continue to lower your payments as
your balances decrease, each month prolonging the life of the loan and the total amount of interest you pay.

Creditor/
Debt

Option 2: Paying a fixed payment each month


Balance
Minimum Interest Time to pay
Owed
Mo. Pmt.
Rate
off*

Total
Expense

example

Nordstroms

$1,000

$20

16%

83

$659

Credit Union

$1,500

$30

15%

79

$869

Household Bank

$1,000

$20

12%

70

$393

Discover

$3,000

$60

17%

88

$2,256

BofA

$2,500

$50

17%

88

$1,880

Ford Motor

$12,710

$387

6%

36

$3,199

Citibank

$2,500

$50

14%

76

$1,274

Jerome's Furn.

$1,500

$30

18%

94

$1,293

$24,710

$647

614

$11,283

TOTALS

Total savings using Option 2 over option 1 is 1311 time payments and $13,525 in interest,
not to mention all the time writing checks, mailing bills and the cost of stamps.
Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

83

d e s t i n e d
j ohn s

g e t

out

f o r

of

w e a l t h

de b t

p lan -e x amp le

1-10 Year Example using the CREDiT Method


Gross Mo. Income: $
Percent Committed:

Total debts owed: $

6,166.00

24,710.00

Min. Mo. Payments: $ 647.00

15 %

Amount Committed: $ 925.00

My DEA Factor: $ 278.00

Why must I absolutely accomplish these goals?

Option 3: Pay a fixed total payment each month (total of all minimum
payments) plus your DEA Factor to accelerate your plan.

Creditor/
Debt

Balance
Owed

Minimum
Mo. Pmt.

Interest
Rate

Time to pay
off*

Total
Expense

Nordstroms

$1,000

$20 plus DEA

16%

$30

Household Bank

$1,000

$20

12%

$60

Jerome's Furn.

$1,500

$30

18%

13

$239

Credit Union

$1,500

$30

15%

18

$280

Discover

$3,000

$60

17%

24

$894

BofA

$2,500

$50

17%

29

$904

Citibank

$2,500

$50

14%

33

$809

Ford Motor

$12,710

$387

6%

34

$3,194

$24,710

$647

163

$6,430

example

TOTALS

* My number one target for elimination


Total savings using Option 3 over option 1 is 1762 time payments and $18,918 in interest.
Total savings using Option 3 over option 2 is 451 time payments and $5,393 in interest.

Nothing is particularly hard if you divide it into small jobs.


R AY C R O C K

84

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

d e s t i n e d
my

g e t

f o r

o ut

of

w e a l t h
de b t

p lan

My 1-10 Year Plan for total debt freedom


Gross Mo. Income: $
Percent Committed:

Total debts owed: $


%

Amount Committed: $

Min. Mo. Payments: $


My DEA Factor: $

Why must I absolutely accomplish these goals?

When I get it, where and how am I going to apply it?

TOTALS

Minimum
Mo. Pmt.

Balance
Owed

Creditor/
Debt

Time to
pay off*

Interest
Rate

M y #$1 T a r g e t

*You can access a calculator on the


internet at www.takecount.com

(This figure will be moved to your New Spending Plan on page 95)

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

85

d e s t i n e d

f o r

w e a l t h

n ot e s

86

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

d e s t i n e d
de f e ns e

pl an

f o r

# 1

w e a l t h
e xpe n se

p lan

Its a simple fact that you can only do one of two things with your money: You can save it, or you can
spend it. Thats it! Like a cookie jar, the expense jars create a way for you to save money you know
you will spend for major expenses in advance into a specific account (i.e., a jar) that has a specific
destination (an expense).

The Three Expense Cookie Jars


jar

automobile/transportation

&

insurance

The purpose of this jar is to prepare in advance for your automobile and transportation
expenses and needs. These needs should include a new car no matter how far in the future
it may be. In addition, this jar includes savings for any repairs, insurance, and registration
expenses. This money should be kept in a low-risk, short-term investment account that is
easily accessible, similar to the assurance bucket.

jar
home,

taxes,

education

&

medical

The purpose of this jar is to prepare in advance for the major expenses of your home and/or
childrens education. Your home expenses may include all insurances and taxes if you dont
have an escrow account. In addition, it should include money for a new home, fixing up
your current home, or possibly for a second home or income property. The savings for your
home should be liquid but not too easily accessible, short to medium term CDs or Money
Markets work well. Your education accounts (for yourself or your children), should be in
medium term, secure growth environments like a mutual fund. Pension Plans can work well
for your childrens education expenses as well.

jar
toys,

gifts,

clothes

&

pets

The purpose of this jar is critical as this is where monies can disappear and get you off
track in a hurry. The purpose of this jar is to prepare and save in advance for your expenses
for any vacations you may plan, toys, or luxury items you purchase. This would include
life-style purchases, such as audio-visual equipment, computers, tools, sporting goods, and
activities such as concerts and weekend getaways. Also this jar allows you to save in
advance for any gifts you will purchase throughout the year such as family and friends
birthdays, weddings, and baby gifts and any non-reimbursed business expenses. In addition, you can save for your clothing purchases here. This money should be accessible, i.e., a
bank savings account, money market or short-term CD.

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

87

88

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

89

d e s t i n e d

f o r

w e a l t h

n ot e s

90

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

d e s t i n e d

f o r

w e a l t h

defense plan #2

spending

CLO
P UTTIN G
F O R

SIN G

TH E

Y O UR

F IN AN C IAL

AP

P LAN S

TO

W O R K

IN DEP EN DEN C E

The difference between the rich and the poor is simply this:
the rich save their money and spend what is left and the poor
spend their money and save what is left. Thats it!
WARREN BUFFET

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

91

d e s t i n e d
d e fe n se

p lan

f o r

w e a l t h

# 2s pe n ding

Once you have set clear goals, established a plan for getting out of debt (if needed) and set a
plan to stay out of debt by managing major expenses, the next step is to manage all you spend.
This step is so critical in the process because this is the funnel where all your success will come
from. Remember, its not what you make, its what you keep that makes the difference of your success and the way we manage what we keep (save and invest) is by controlling our spending.
Spending is a very emotional issue because all that we want, and all that we feel we need and
deserve is completely tied to how we feel. A common problem with spending is that we tend to
increase our spending at the same rate our income increases. To make sure you are successful
long term, whenever you get a pay increase, or your income goes up, make certain you dont
raise your standard of living by the same percent. All too often we see people who make
$250,000 per year and their expenses can barely keep up with it. As your earning power increases you want to make sure you first increase your savings, then your expenses and spending to
insure long-term success.
When we make our spending plan a priority, we have much more ability at controlling and
anticipating forces that can catch us off guard. See the diagram below on how a large number
of peoples money flows through their life

The Spending Pattern of the Poor


As you can see here, the typical pattern of
someone who may be struggling financially
is to spend, pay debts and then save. This
pattern assures you a longer, more difficult
road to financial independence. Your
money gets sucked away by interest payments and unwise spending that makes it
nearly impossible to achieve your goals.

Income
EARN

DEBT
Payments

The Spending Pattern of the Rich


To be successful long-term, you must pay
yourself first then make wise investments
before you spend your money. This psychology is the sure way to reach your goals
at a much faster pace. You also eliminate
the cost of borrowed money which accelerates all of you outcomes by giving you
much more freedom to save and invest.

92

Spending

Savings

Income
EARN

Expenses
Spending

SAVE

INVEST

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

d e s t i n e d
de fe n se

p lan

f o r
# 2

w e a l t h

sp e ndin g

Three Actions we can take to change our lifestyle and what we spend

Cut the fatdiminish our wants and our perceptions of what we need
Where is the bulk of our spending going? Chances are it is on your:
1. Taxes
2. Mortgage/Interest payments
3. Food
4. Automobiles/Transportation
5. Insurances
6. Utilities
Here are some questions we can ask ourselves to help us cut the fat:
!
!

!
!

Do I really want/need this expense anymore?


Will having this expense give me more joy or take me further away from my
financial goals?
Does the immediate benefit I get by having this expense (instant gratification) out
weigh the cost of slowing down my financial success?
What can I do to reduce or eliminate this expense while still enjoying the process?
What need is this expense meeting and can I fulfill this same need less expensively?

Shop and Spend Smart


The idea here is to make sure you are getting the most for your money, and that you use
every resource available to get the best possible price while shopping. Now that your list
has been leaned down from the exercise above, you can now go back through it again and
ask the following questions:
!
!
!
!

Am I really getting the most for my money with this expense?


Have I attempted to negotiate a better price or terms on this expense?
Have I really shopped this out for the best deal?
Where can I get the same (or even better) quality for less?

Spend with the long-term in mindThe idea here is to make sure you evaluate future or ongoing expenses associated with your
immediate purchase. For example, if you are purchasing a bigger home, what additional
expenses will come with this larger home? If you are purchasing a toy (motorcycle, boat,
etc) what are the future costs to maintain this vehicle or purchase?

Efforts in courage are not enough without purpose and direction.


JOHN F. KENNEDY

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

93

d e s t i n e d
de f e ns e

f o r

p lan

# 2

w e a l t h

s pe n ding

Never underestimate the value of a decision. Take a look at these scenarios that more
clearly illustrate why you want to be an investor not a consumer!

example
pack

of

cigarettes?

Couple A smoked 3 packs of cigarettes per day for 46 years, they spent approximately
$33,190 for cigarettes during this time period and complained all the time that they had no
money to invest.
Couple B, by making a decision not to smoke anymore, instead purchased Phillip Morris
stock with the same amount of money, dollar cost averaging the stock over that 46-year
period. Not only will they be in better health, having reinvested all dividends, and selling
the stock at its peak, that $33,190 worth of stock is now worth approximately 2.2 million
dollars! Had they invested that money in an index fund during their lifetime, it would have
been worth nearly $100,000.

example
what

kind

of

car

do

2
you

drive?

Person A buys a Subaru in 1967 for approximately $6000. He is not sure today where that
car is because he sold it and moved to a different car.
Person B instead purchased the Subaru stock around $2 per share in 1967. It went to $167
at its peak and would be worth over half a million dollars!

example
coke

anyone?

On average, each child in the US consumes three 12-oz. sodas per day. If instead of buying
these sodas, they would have invested in Coca-Cola stock, they not only would have much
lower dental bills and no caffeine addiction, they would also have a ton of money!
Three sodas per day is 90 sodas per month or about 1,080 per year. At .75 cents each from a
vending machine, that equates to $810 per year. If they had saved their money and invested
in Coca-Cola stock at the end of each year for the past 5 years, they would now have over
117 shares of stock. They would have invested a total of $4,050, which would now (1/1/99)
be worth $7,846.86.

94

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

d e s t i n e d
c u t
exercise
Go through your entire
spending plan, item by item,
and ask the questions on page
91 to help you cut the fat. You
will be surprised how much
extra money you can find at
the end of the month. This is
money you can use to accelerate your debt payment (DEA)
or use to accelerate your savings and investments to
achieve your Critical Result
Goals at a much faster pace.
Go for it!

note
You can go to:
www.takecount.com and
download an Excel spre a dsheet that will calculate this
exercise for you.

t he

f o r

f at

w e a l t h
e xe rci se

Monthly Expense

1 Rent or Property Taxes


2 Food-Groceries only
3 Clothing Expenses
4 Auto/Transportation
5 Insurances
6 Utilities
7 Minimum Debt Payments
SUBTOTAL

Business Expenses
Children
Clubs/Organizations
Contribution/Charity
Education
Electronics/Technology
Food-Dining Out
Financial/Banking
Fun/Entertainment
Gifts/Celebrations
Grooming
Habits
Hobbies/Activities

Current Cost

New/Ideal

$
$
$
$
$

$
$

$
$
$
$
$
$
$
$
$
$
$
$
$
$

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

$
$
$
$

$
$
$

Rental Property

$
$
$
$
$
$
$
$

Toys

$
$
$
$
$
$
$
$
$
$
$

Travel/Vacations

$
$

$
$

Household Groceries
Household Items
Household Maintenance
Household Staff/Support
Legal/Professional Fees
Luxury Items
Medical/Dental/Alternative
Personal Accessories
Pet Care

Any Other Expenses

Total Monthly Expenses

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

95

d e s t i n e d
joh ns

ne w

f o r

w e a l t h

sp e ndin g

pla n- e xamp le

Financial/Banking - Broker,
Transactions, Service Fees, ATM, etc.

Name: John Cocktoastin


Johns Seven Basic Expenses

Fun & Entertainment Concerts, shows, movies, video rental,


CDs/DVDs

Gifts - Birthdays, holidays, weddings,


babys, family, etc.

Mortgage or Rent

$ 1125

Grooming Expenses -

Food - Groceries only

$ 200

Haircut, color, make-up, salon services,


manicure/pedicure

Clothing Expenses

$ 100

Habits - Cigarettes, coffee, tobacco,

Residence Only (Inc. Property Tax)

Auto/Transportation
Service, Fuel, Parking, Registration

Insurances Life, Disability,


Medical, HMO, Auto, PMI, Legal,
Home/Hazard

alcohol, gambling

$ 100

Hobbies/Activities - sporting
goods, boating, golf, scuba, skiing, yoga,
painting, collectable's

$ 20
$ 60
$50
$ 25
$ 25
$ 75

example

Utilities Gas/Electric, Cable, ISP,


Telephone, Cell Phone, Water/Trash

Debt Payments

(from worksheet on page 82)

SUBTOTAL

$ 150

paper goods, cleanser's, laundry detergent

$ 180

Household Items -

$925

Household Maintenance -

$ 2,780

My Seven Basic Expenses

Household Groceries - Toiletries,

Discretionary Expenses

Furniture,
Appliances, Decorative items, accessories
Windows, carpets, paint, exterminator

Household Staff/Support -

Security service, maids, gardener, pool


service, personal assistant, Butler.

Legal/Professional Fees Attorneys, CPAs, etc.

Savings Buckets
(total amount from page 55)

Expense Jars
(total amount from page 86)

$1225
(Included in other fields)

Business Expenses Any unreimbursed expenses, gifts,


meals, incidentals, etc.

Children -

Day Care, nanny,


Babysitter, child support, camps

$ 50
$0

Contribution -

Charity,
Tithing & any Donations

Education - College, private


school, seminars, tapes/CDs,
Personal Growth, Books

Prescriptions, chiropractor, massage


acupuncture, herbs/supplements, co-pay

Personal Accessories Jewelry, Purses, Hats, Glasses, etc

Pet Care - Veterinarian, food, toys,


supplies, care

$ 50
$ 20
$0
$ 50
$ 10
$ 20

Mortgage payment and expenses on


property other than residence

$0

$ 25

Toys - Motorcycles, boats, planes, jet


skis, collector car

$50

Travel/Vacations - Airfare, hotel,


$ 25

timeshare, car rental

Taxes - Include Federal, State,


Medicare, Social Security, SDI

$ 25

Any Other Expenses Anything else you know is consistent

Food - Dining Out


Includes restaurants, childrens
lunches, alcohol, snacks, etc

Medical, Dental, Alternative -

$ 50

$ 20

Electronics/Technology Computers, Audio/Visual, PDA,


Cell Phones, Pagers, Office Equip.

Limousine, Spa Retreats, etc.

$ 50

Rentals/Properties -

Clubs/Organization -

Dues
for Gym, Athletic Club, magazines,
country club, environmental

Luxury Items - Yacht, Airplane

$ 25

$ 25

Total Monthly Expenses

$100
$555
$ 0
$5,460

Spend less than you earn and invest the difference.


96

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

d e s t i n e d
my

ne w

f o r

w e a l t h

sp e ndin g

pla n

My Seven Basic Expenses

1
2
3
4
5
6
7

Property Taxes or Rent


Food - Groceries only

$
$

Clothing Expenses

Residence Only

Auto/Transportation
Service, Fuel, Parking, Registration

Insurances Life, Disability,


Medical, HMO, Auto, PMI, Legal,
Home/Hazard

SUBTOTAL

Grooming Expenses Haircut, color, make-up, salon services,


manicure/pedicure

Habits - Cigarettes, coffee, tobacco,


Hobbies/Activities - sporting
goods, boating, golf, scuba, skiing, yoga,
painting, collectable's

Household Groceries - Toiletries,


paper goods, cleanser's, laundry detergent $
Household Items -

Furniture,
Appliances, Decorative items, accessories

Household Maintenance -

My Discretionary Expenses

Savings Buckets
(total amount from page 56)

Expense Jars*

These expenses will be reflected


in your itemized monthly totals
on this page.

(total amount from page 87)

Business Expenses Any unreimbursed expenses, gifts,


meals, incidentals, etc.

Children -

Day Care, nanny,


Babysitter, child support, camps

Clubs/Organization - Dues
for Gym, Athletic Club, magazines,
country club, environmental

Contribution -

Charity,
Tithing & any Donations

Electronics/Technology Computers, Audio/Visual, PDA,


Cell Phones, Pagers, Office Equip.

Financial/Banking - Broker,
Transactions, Service Fees, ATM, etc.

note

Security service, maids, gardener, pool


service, personal assistant

Legal/Professional Fees Attorneys, CPAs, etc.

Luxury Items - Yachts, Airplanes,


Limousines, Spa Retreats, etc.

Prescriptions, chiropractor, massage


acupuncture, herbs/supplements, co-pay

Pet Care - Veterinarian, food, toys,

$
$

$
$
$
$
$

Rentals/Properties -

Toys - Motorcycles, boats, planes, jet


skis, collector car

Personal Accessories -

Mortgage payment and expenses on


property other than residence

Medical, Dental, Alternative -

supplies, care

Food - Dining Out


Includes restaurants, childrens
lunches, alcohol, snacks, etc

Windows, carpets, paint, exterminator

Household Staff/Support -

Jewelry, Purses, Hats, Glasses, etc

Education -

College, private
school, seminars, tapes/CDs,
Personal Growth, Books

My Seven Basic Expenses

Gifts - Birthdays, holidays, weddings,


babys, family, etc.

Debt Payments
(from worksheet on page 83)

alcohol, gambling

Utilities Gas/Electric, Cable, ISP,


Telephone, Cell Phone, Water/Trash

Fun & Entertainment Concerts, shows, movies, video rental,


CDs/DVDs

Travel/Vacations - Airfare, hotel,


timeshare, car rental

Any Other Expenses -

$
$

Anything else you know is consistent

Total Monthly Expenses

*You can either list these expenses individually on this page, or use the total from your plan on

page 87, just be sure not to count them twice.


Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

97

d e s t i n e d

f o r

w e a l t h

n ot e s

98

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

d e s t i n e d

f o r

w e a l t h

defense plan #3

protection

CLO
P UTTIN G
F O R

SIN G

TH E

Y O UR

F IN AN C IAL

AP

P LAN S

TO

W O R K

IN DEP EN DEN C E

Obstacles are those frightful things you see


when you take your eyes off your goal.
HENRY FORD

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

99

d e s t i n e d
de fe n se

p lan

f o r

w e a l t h

# 3p rot e ct i on

Protect Yourself through effective Estate Planning


If youre like most people, you probably took one look at the title of this page, started holding
your breath, and wondered whether you really wanted to read it. After all, Estate Planning
sounds awfully complicated and boring. Its the kind of phrase that makes people hope that if
they put their heads in the sand long enough, maybe it will just go away. So first of all, lets shrug
off the idea that were talking about Estate Planning. Instead, I want you to think of yourself
as a volunteer for a good cause, maybe the best of causes. You will be volunteering your time to
make things a little easier on your spouse, kids and family in case of a death or incapacity.

The Vehicles for Protection


!
!
!

Business/Corporations
Wills
Trusts

!
!
!

Insurances
Patents, Copyrights, Trademarks
Health Care & Medical Documents

What to Protect
!
!
!

Personal Property
Business Assets
Real Estate

!
!
!

Intellectual Property
Investment Assets/Portfolio
Your Family

4 Things a Trust Will Help You Avoid


1. Avoid Probate: If you only have a Will, on your death your family will spend 1 to 2 years
doing paperwork at the Probate Court, pay an average of $10,000 to $20,000 or more in
lawyers fees, and leave a public record of exactly what you owned and who inherited it.
A Living Trust avoids Probate entirely.
2. Avoid Conservatorship: What happens when someone becomes incapacitated without
any protection planning? For example, what if a husband gets in a car accident and winds
up in a coma and the spouse needs to sell their home for cash to live on. If the husband
cant sign his name to sell the house, the spouse will have to go to Probate Court to get a
Court Order allowing the home to be sold without his signature. The same downsides
apply (wasted money, wasted time, public record) in a Conservatorship as you have
in Probate.
3. Avoid Death Taxes: A Trust can help a married couple avoid hundreds of thousands of
dollars in death taxes.
4. Avoid Children Inheriting Too Early: Instead of having your children receive their entire
inheritance outright when they are still too young to use it wisely, use a Trust to have an
older person whom you have chosen use the inheritance to pay for your childrens
education, housing, etc. until an age you choose for them to inherit the money outright.

100

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

d e s t i n e d
de fe n se

p lan

f o r

w e a l t h

# 3p rot e ct i on

All it takes is a little organization, so lets go through it step by step.

Step 1: Set Up a Living Trust Based Estate Plan


As part of your Living Trust based estate plan, you will also have other documents such as a
Pour-Over Will, Power of Attorney for Finances, Health Care Directive, etc. that your attorney
will create for you to ensure that you stay in charge of your children, healthcare and finances
even in case of incapacity or death.

Step 2: Leave a Map, Not a Mess


One of the hardest things to figure out after someone dies is where they had bank accounts,
where the safe deposit box key is, what life insurance policies they had, etc. So instead of leaving behind a mess, leave a map. Your estate planning lawyer should provide you with a binder
with tabs for copies of your Trust, etc. and a place to write down a map that your family can follow to find your bank accounts, CPA, safe deposit box, etc.

Step 3: Put Your Belongings in Your Living Trust


The most common mistake people make in this area is failing to transfer property into their
Living Trusts, or transferring the wrong kinds of assets into a Trust. If this is not done, or is done
improperly, it can be worse than having no Trust at all, so its very important that you get professional advice on these transfers before doing them
Reprinted with permission by Estate Planning Attorney, Adam Slonim, LL.M. www.FamilyEstatePlanner.com

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

101

d e s t i n e d
de fe n se

f o r

p lan

w e a l t h

# 3p rot e ct i on

Life Insurance Options Plain & Simple


There are two main categories of insurance Term & Permanent. It is not appropriate to say one type is
better than an other. The appropriate type depends on each individual's circumstances and financial condition.

term

life

insurance

Term insurance is the easiest to understand. In exchange for a level premium (i.e. $30 per month)
over a specified period of time (10, 15, 20, 30 years) the insurance company promises to pay a
specified death benefit (i.e. $500,000) if the insured dies within that period of time. If the insured
does not die within that period of time, the policy either lapses, is renewed at a much higher rate,
or (with most insurance companies) can be converted to some sort of permanent insurance (usually at much higher costs than if permanent insurance was originally purchased).
Term insurance will always be the least expensive option initially. If you know you will only need
or want coverage for a certain period of time or if finances are limited, term is the ideal insurance
solution.

permanent

life

insurance

Many people speak of whole life when referring to permanent insurance. Whole Life is actually only one of four main types of permanent insurance. Permanent life insurance is designed
to be in force until you die, no matter when that is. Permanent life insurance can also be a valuable option if you are interested in using the policy as a form of savings. Most life insurance
policies will require that you meet certain medical criteria.

1. Whole Life
Similar to a term policy, whole life policies stretch the cost of insurance out over a period of time
in order to level out the otherwise increasing cost of insurance. In this case however it is spread
not over a few years but over your entire life. Your excess premium dollars are invested by the
company and this cash value accumulates at conservative interest rates guaranteed by the life
insurance company. Because you arent personally managing that investment, your selection of
an insurance company is vitally important. With this type of policy, however, the inflexibility of
premium payments could become a burden if your expenses increase or if you lose your job or
income. Premiums are generally required to be paid until age 100.

102

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

d e s t i n e d
de fe n se

permanent

p lan

life

f o r

w e a l t h

# 3p rot e ct i on

insurance

(cont.)

2. Universal Life
This option offers greater flexibility than whole or term life. After your initial payment, you can
reduce or increase the amount of your death benefit (although to increase the amount, youll
probably have to give the insurance company medical proof that you are still in good health).
Also, after your initial payment, you can pay the premiums any time, in almost any amount,
within the policys required minimums and maximums. The excess premium is invested by the
insurance company (generally at higher current rates than whole life), so youll need to be careful when choosing a company.

3. Equity Indexed Universal Life


This type of Universal Life gives the same flexibility regarding premium payments & death benefit but also allows your cash value the potential to participate in a portion of market increases
mirroring an index (such as the S&P 500), while protecting against loss of principal when the
market goes down.
This newer types of Universal Life essentially gives you the best of both worldsthe ability to
participate in the increases in the market while avoiding the downs. The guaranteed interest
rate is not as high as the universal life options. You have some choice as to which index you
would like to track, but you do not have the ability to select customized investment portfolios
and participate fully in the market increases like you do with variable universal life.

4. Variable Life
This option provides death benefits and cash values that fluctuate with the performance of the
portfolio of investments that you choose (youll receive a prospectus along with your policy).
The cash value is not guaranteed, but you get to choose where your premium dollars go among
the investments in the portfolio. Thus, while there is no guaranteed cash value (it can go down
when the market goes down), you have control over your money and can invest it according to
your own tolerance for risk.
In most variable policies, if your investments perform well, youll either have a higher cash
value and death benefit (some policies allow you to add your cash value into your death benefit). If they dont, youll have a lower cash value and death benefit, although some policies guarantee a minimum death benefit. You can also take loans against the cash value of your policy
(true of other types of permanent insurance as well). The tax-deferral and potentially tax-free
withdrawals can make these types of policies very attractive for people looking for additional
savings vehicles.
Look closely at the underlying funds of the company offers: Are they well balanced? Do they
give you a range of choices to satisfy all risk tolerances?

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

103

d e s t i n e d
m y

f o r

p rote c tion

w e a l t h

p lan

c h e ck lis t

3-6 months of living expenses in a money market

Durable Power or Attorney*

A Will and/or Living Trust*

Advanced Medical Directive*

Incorporating* (S-Corp, C-Corp, LLC, Sole Proprietor)

Proper Insurances
Disability Insurance
Life Insurance
Medical Insurance
Auto Insurance
Home Owners/Renters Insurance

!
!

(fire, earthquake, flood, theft, liability)


!

Legal Insurance
(Patent, Copyright, Trademarks, etc.)

Long-Term Health Care

10% Stop Loss orders on all securities purchases

Appropriate Legal Counsel

Fraud Protection & Identity Theft

Appropriate Intellectual Property Protection

*consult a professional

104

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

d e s t i n e d

f o r

w e a l t h

defense plan #4

taxation

CLO
P UTTIN G
F O R

SIN G

TH E

Y O UR

F IN AN C IAL

AP

P LAN S

TO

W O R K

IN DEP EN DEN C E

Its not whether you get knocked down,


its whether you get up.
VINCE LOMBARDI

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

105

d e s t i n e d
de f e ns e

f o r

p lan

w e a l t h
#4 t axe s

Control Your Emotions


Without a doubt, the single greatest expense you will have in your working lifetime, is taxes!
This is money you never see as its handled like an "auto-withdrawal" from your paychecks.
Federal, State, Medicare, Social Security, SUI/SDI, Sales Tax, Sin Taxes and Capital Gains and
Estate Taxes will all add up to the biggest expenditure in your lifetime. Im sure you have heard
the saying, "born free and taxed to death."
Watch your focus! The first step in creating a tax plan is purely in your mindset about taxes, and
controlling your emotions on this very emotional issue. We must become aware of, and avoid,
the philosophy of lowering your taxes by lowering your earnings! Let me ask you a question.
Would you rather have 70% of $70,000 or 50% of $100,000? Of course the answer is the 50% which
equates to $1000 more for you, and yet some people, even unconsciously, will want the 70%
because they feel like they are losing less, rather than gaining more! The trap that you want to
avoid is the "why earn more, the government will just take it in taxes" philosophy? And to some
degree this is true, that they will take a higher percentage, but you must remember that keeping
less is not your outcome! So the key is to focus on what you are gaining, rather than what you
are losing.
I remember falling into this trap when our employer decided to give my wife and I a cash bonus
for Christmas. We went out to dinner that night, literally with thousands of dollars in our pockets because the banks were closed. We felt so great until we met with our tax accountant and he
told us, based on what we earned that year, we could kiss 55% of our cash goodbye! Fifty-five
Percent! I remember feeling totally defeated and asking questions like "why even try?" or "whats
the use?" We had fallen into the trap of focusing on what we lost, rather than what we gained.
This was the year we made the shift and decided that we will pay whatever we are asked and not
a dollar more, and that we will constantly focus on what we gained rather than what we were
losing. This gives you a freedom to go out and do whatever it takes to boost your income and
feel like you are winning rather than losing.

Pay What You Owe


Pay what you owe. The next step is to make your taxes a focus, to be able to pay the minimum
possible without breaking any of the rules and getting into trouble with the IRS. No one wants
to be on the bad side of this organization, and we need to make sure we keep as much as possible and pay only what we are liable for. Seeking out the advice of a great Tax Accountant is a
great start, but like investing, you want to make certain you are doing everything you can do to
take the maximum advantage of your tax savings. Dont just blindly rely on someone else to do
your taxes for you. A great tax mentor, Sanford Botkin, was a tax attorney for the IRS for 30 years,
and was also one of 8 attorneys appointed to train the IRS auditors. He is the founder of the Tax
Reduction Institute, and now leads his own seminars all over the country teaching you what the
IRS doesnt want you to know. His personal mission is to help the American public to save billions in taxes, by educating you on how to take the greatest advantage of your tax savings. He
also shows you how to "audit proof" your taxes and tells us that the last great tax advantage is
having your own business.

106

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

d e s t i n e d
de f e ns e

f o r

p lan

w e a l t h
#4 t axe s

Beware of Underpaying!
Im sure this has happened to you, you have had a great year, you met some goals, saved some
money and everything seems to be going well and then all the sudden you are slapped with a tax
bill at the end of the year. Unless you have invested this underpayment and received a spectacular return that more than pays the tax bill, this can be a very frustrating experience you want to
avoid. Be sure to get proper advice on estimating your taxes so that you avoid underpayment.

Avoid Overpaying!
Be careful of overestimating your taxes and getting that nice "refund" every year. For a lot of people this can be exciting, to get a check back for overpayment, but you have to remember that your
money is not working for you if you do this! When I was younger, I looked forward to that check
every year, because I knew that if I didnt overpay, I would have spent the money anyway, so I
treated like a savings account. But the IRS does not pay you interest or dividends on your overpayment. You get back what you overpaid, period! You must have the discipline and focus on
paying as close to the amount you owe, so that you can save and invest your money instead of
having the IRS hold it for you, with no benefit.

Keeping Records
Being organized, year by year can be a great benefit to you should there ever be a question about
your records. Sandy Botkin has a great system to help you keep records. This system helps you
to keep only what you need, and what the IRS wants to see. Get a file folder or bankers box and
keep your records neat and organized. Separate envelopes for your receipts work well.

Find A Great Tax Accountant


As with the philosophy of focusing on what you have gained rather than what you have lost, you
want to be careful of not paying someone to do your taxes for you who may be able to save you
money. Would you pay an Accountant $400 to do your taxes? Of course you would if he saved
you $401, or more! You also want this person by your side, should you ever be audited by
the IRS.

note
Use the spreadsheet on page 106 to track what your total tax payments
a re and more importantly, what the p e rc e n t a g e is to your income.

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

107

d e s t i n e d

108

f o r

w e a l t h

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

d e s t i n e d

f o r

w e a l t h

session
5
RESO
BO O K S

UR C ES

F O R

C O AC H IN G

& C

UC C ESS

S O F T WA R E

O MMUN ITY

Second only to freedom, learning is


the most precious option on earth.
NORMAN COUSINS

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

109

d e s t i n e d
fi le

f or

f o r

w e a l t h

su cc e s s

Automate Wherever Possible


In today's world, automation is a necessity. Wherever possible create automatic withdrawals, transfers, debits and deposits. The very first auto-withdrawal you need to create (if
you havent already done so) is for your savings buckets. Also for monthly expenses like
your mortgage, insurance, auto loan, etc will create much more time for you, less postage
stamps and no licking envelopes!

Create Your Work Space


If you have an office, use this as your work space. If you dont. clear off the kitchen table or
wherever works for you and call it your work space. When I was younger, I cleared out half
my bedroom closet, got an old oak desk from a garage sale and called this my work space.
You must have a space to designate that this is where you will pay your bills, do your planning, etc to accomplish the goals you have set in this program.

Your File System


Keeping organized is a key part of your financial "business" success. Make sure you keep
strict accounts by organizing your paperwork just like you would in any other business
endeavor. Your filing system will help you stay organized, relieve stress and make your life
much easier and enjoyable. Knowing where things are frees your mind from the struggle to
remember where everything is. You file it, its done, and you can forget about it and live
your life! Keeping a separate file for each account works great. When you have recorded the
information from your documents into this program, then you should file it away for easy
reference. Creating separate file drawers (if you have the space) can work well also. The following could be a sample of how to "chunk" or organize your file drawers:
!
!
!
!

All Portfolio & Investment Paperwork


Estate Planning and Legal Files
All Insurance Paperwork
All Mortgage & Home Paperwork

!
!
!
!

All Credit Card & Loan


Paperwork
All Tax Paperwork
All Clubs & Subscription Paperwork

Schedule Your Time


Make time in your schedule each week and each month to stay on top of the tasks at hand.
Make it a ritual, just like mowing the lawn or changing the oil in your car. Set a time during
the week, like each Sunday Night, or every other Saturday morning, where you can devote
the necessary time to update your information, assess where you are and set a plan for the
week ahead.

110

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

d e s t i n e d
fi le

f or

f o r

w e a l t h

su cc e s s

Your In-Box
Keeping an in box is essential step in getting and staying organized. A general rule that works
well is this, dont file something until you have entered the updated information into the computer. If you use this rule, then you can assess the work ahead by the size of your in basket.

Cleaning House
Dont keep things forever! At least once per year, you should purge the paperwork, statements and receipts you no longer need. Keeping a lean filing system will, again, free your
mind to focus on the important tasks, rather than the clutter you have to deal with "someday."

Invest in Tools (but use a cookie jar)


There are many products, services and tools available to help you reach your goals faster and
with greater ease. As you evaluate what your goals are for the year, consider what tools will
help you to achieve these goals. The least expensive of these is books where you can get many
great ideas and strategies for financial success. Software programs like Quicken or Microsoft
Money for managing your finances are a fantastic value. At the further, in most cases more
expensive, end are Coaches and Seminars for financial success. Anthony Robbins Wealth
Mastery program is approximately $4000 for four days and could be one of the greatest investments in your financial future. On the following page Ive outlined the tools that I offer for
total financial success.

Love Your Family, Choose Your Peers


There is an old saying dont walk away from your negative, pesamistic friends and
family...RUN AWAY from them! This is a very delicate subject, and it is extremely imoportant
to surround yourself with people who have high standards, goals and positive outlook on life.
Remember the old saying, if you lie down with dogs, you come up with fleas. Love your
family and choose your peers and the community you spend your time with.

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

111

d e s t i n e d
for

f o r

y ou r

w e a l t h

re cords

Below is a place to keep all your pertinent account information in one place. Here you can capture
Account information that can easily be referenced in case of an emergency.

Account

112

Account Number

Phone Number

Additional Info

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

d e s t i n e d
df w

f o r

w e a l t h

re c omme nde d

re a di n g

Basic Principles of Financial Success:


!
!
!
!
!
!
!
!
!
!
!
!
!
!
!

The Richest Man in Babylon by George Clason


Think and Grow Rick by Napoleon Hill
God Wants you to be Rich by Paul Pilzer
Discovering the Laws of Life by John Mark Templeton
The Humble Approach by John M. Templeton
The Money Game by Adam Smith
Self Made in America by John McCormick
Rich Dad, Poor Dad by Robert Kiyosaki
Wealth 101 by John-Roger & Peter McWilliams
The Trick to Money is Having Some by Stuart Wild
Personal Finance for Dummies by Eric Tyson
The Millionaire Next Door by Thomas J. Stanley and William D. Danko
The Instant Millionaire by Mark Fisher
Money Does Grow on Trees by Clifford Wilson and Cynthia Freeman
Money Mastery by Sanford Botkin and Peter Jeppson

Fundamental Strategies:
!
!
!
!
!
!
!
!

The 5 Rituals of Wealth by Todd Barnhart


$mart Money, How to be your own Financial Manager by Ken & Daria Dolan
Your Money or your Life by Joe Dominguez and Vicki Robin
The Cashflow Quadrant by Robert Kiyosaki
One Up On Wall Street by Peter Lynch
Learn to Earn by Peter Lynch
Making the Most of your Money by Jane Bryant Quinn
The Roaring 2000s by Harry S. Dent

Sophisticated Strategies:
!
!
!

Invest Your Way to Wealth by Charles Mellon


The Warren Buffet Way by Warren Buffet
Beating the Dow by Michael OHiggens with John Downes

If you want to EARN more, you must LEARN more.


JI M R O H N

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

113

d e s t i n e d
ab ou t

f o r

e ig h ty / twe nt y

w e a l t h

te c hno log ie s,

inc .

Mission Statement
To have a positive impact on the amount of people who enjoy financial independence and a debt-free life.
We accomplish this by providing resources that educate and empower individuals and families with
strategic ideas that create choices and motivation for financial prosperity.

About Chris Hendrickson


For more than two decades, Chris has been coaching people from all walks of life. In addition to developing the
life-changing principles that comprise the Take Count & CREDiT methods, Chris has been a trainer and top sales
producer with the Anthony Robbins Companies.
He began his career in personal finance and consumer credit in 1986. Working with Household Finance
Corporation, where he served as a loan officer, collector, bankruptcy representative and repossession official. In
1989, Chris teamed up with the Anthony Robbins Companies the world leader in self-improvement and personal coaching empowering thousands of people with the resources to create a higher quality of life. In addition, he is certified in Neuro-Associative Conditioning as a peak performance expert, and has worked as a consultant in the financial, real estate, sales, and telemarketing industries.
Chris has studied directly under many of the worlds top financial experts, including peak performance coach
Anthony Robbins, economist Peter Lynch, and economic forecaster Harry Dent. Chris is also a featured speaker
and trainer at Robbins Wealth Mastery seminars. Chris has lived in San Diego since 1973 and now resides with
his wife and two sons in Del Mar, California. He is available for speaking engagements and can be reached at:
chendric@san.rr.com.

List of Products
Take Count live Excel Workbook $17.95
This Excel workbook will take you through a live version of the first section in this book, calculating your evaluation for you and helping you to understand where you need to place the majority of your focus to get greater
results in your financial life.
CREDiT Method live Excel Workbook $17.95
This workbook will take you through a live version of the first section in this book, calculating your evaluation for
you and helping you to understand where you need to place the majority of your focus to get greater results in
your financial life.
Destined for Wealth Workbook (112 pages, spiral bound) $34.95 / E-Book $24.95
This detailed workbook outlines the steps for achieving financial independence. Complete with examples, exercises, and descriptions, it will guide you in establishing where you are financially, where you want to go, and how
to create financial prosperity for you and your family. Also available in PDF format for $19.95

Seminars, Speaking and Individual Coaching


Destined for Wealth Full-Day Workshop (Public & Private Workshops)
This entertaining day outlines the steps to create your financial blueprint and walks each participant through the
process of creating a detailed, long-term plan for financial independence. In addition, Chris is available for keynote speaking. Call for fees.
Destined for Wealth One-on-One Coaching $1097
Work one-on-one with Chris as your coach for 6 appointments to create your individual plan.
For more information, you can reach us at:
Eighty/Twenty Technologies, Inc. 13024 Sandown Way, Suite 100 San Diego, CA 92130
Direct: 1.858.720.8720 or on the web at: www.takecount.com

114

Copyright 1997, Chris Hendrickson. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.

Ta k e

Count

Eighty/Twenty Technologies, Inc. 13024 Sandown Way, San Diego, CA 92130-3739 1.858.720.8720 www.5MinuteDebtSolution.com
Copyright 1997, Eighty/Twenty Technologies, Inc. All rights reserved. Reproduction in any form without the express written consent of the author is prohibited.