Edited Deb Version of I - Am - Buying - TRIANA - 2 (1) Original - 11 27 12 Version 1

I Am Buying a Million 1
All rights reserved. No part of this book may be

reproduced, translated, or transmitted in any form or by any
means, electronic or mechanical, including photocopying,
recording, or by any information storage and retrieval
system, without permission in writing from author.
Published by T, K & G Publishing

1702 S. Robertson Blvd. #125
Los Ángeles, CA 90028
The ideas in this book are based on the author’s education and
accumulated experience, and they are presented with the intention of
informing, entertaining and inspiring the reader.
The author and publisher believe the information presented in

this book can be helpful and should be available to the public. But this
book is not sold under the premise that the author and publisher are
engaged in rendering legal, accounting, tax, financial planning or any
other professional service, nor do the author and publisher advocate
specific securities as investments (expressed or implied). This text should
be used only as a general guide and not as your primary resource for
making financial decisions.
Investing is not a “get-rich-quick” scheme. You must

understand that accumulating wealth and becoming economically
independent do not happen overnight; they happen over time.
Furthermore, because there is always risk involved in financial decision
making in general and investing in particular, and because each person is
different and each situation is unique. The author and publisher urge you,
the reader, to consult a professional financial advisor before making any
financial decisions. It is a sign of wisdom and prudence to seek
professional assistance.
Do not use this book if you are not willing to assume all of the
risk and accept full and complete personal responsibility for your
decisions, actions and results.
Neither the author nor the publisher shall have liability or

responsibility to any person or entity for any injury, loss or damage
caused or alleged to be caused, directly or indirectly, by any of the
information in this book.
Contents
Introduction
1. My Planning Steps
2. Learning To Earn Money
3. Controlling Your Money (A Budget)
4. You Owe Money?
5. Earning Money And Paying Taxes
6. Pay Yourself By Saving
7. Invest In Your First House
8. Opening An Account
9. Know How You Are Doing
10. What Are Mutual Funds?
11. Investing By Lending
12. Investing By Owning
13. Ok, How Do I Start To Invest?
14. Keeping Track
Conclusion
INTRODUCTION
How I am learning from dad and mom

to have one a million
Hello Everyone! Maybe you are reading this book because

you are looking for reasons to change your money habits.
Some of you perhaps do not have any savings or maybe
some of you want to further your knowledge on money
management. Either way, by choosing to read this book, you
will soon learn a lot more than you did before; and I hope
that you will put these lessons to work.
My name is Triana Garcia and the reason why I
decided to write this book is to help change the way young
adults deal with money. I have been very fortunate to have
the opportunity to educate children about finances. From a
young age, I have paid very close attention to many of the
people I have met. The one thing that I have noticed they all
have in common, is they have all dealt with financial
struggles in some part of their life.
Ever since I was young, I have given trainings all
over the world with my brother and dad on personal finance.
My dad has taught me everything I know about money to
this day. When I see kids in the seminars that I give, I notice
that they do not know what a savings account is. It saddens
me to know that this important information is not being
taught, especially to the younger generations of today. I
have come to realize that many young children and adults are
uninformed on all there is to know about personal finance
and wealth. I hope that with my knowledge, you will open
your minds up, and let me be the first to show you how fast
your life can change.
When my brother was 10 and I was 12, we wrote a
book on personal finance for children called “We are buying
a Million”. We wrote a book to show children what our dad
was showing us; simple steps that could be done to start
becoming knowledgeable and wealthy at an early age.
When I was 4 years old, I received my first piggy
bank for Christmas. Not really knowing what a pig with a
hole in its back would do for me, my dad slowly explained
that it was about to become my new best friend. In order to
keep my new best friend feeling happy, I had to feed it food
or in other words, loose change or dollar bills.
Let’s just say my piggy got very hungry very quickly.
It was hard for me at first to grab the concept of saving,
especially being how young I was. Once my dad showed me
that you can do it little by little, I got the hang of it. Having
my dad show me the concept that you can have any amount
of money you want. All I had to do was to save small
amounts from time to time; this has always remained in my
mind. I never would have thought that the small concept I
learned from my fourth Christmas would take me very far in
life.
As I got older, new concepts became favorite friends
of mine such as the 4-envelopes of accounting, the Rule of
72, budgeting, and investing.
Along the following chapters, you will come across
many new ideas that at first may seem like a new language
and hard to follow. You will learn how to earn money in
different ways, learn to save and invest your money to
become a millionaire. Once you follow the steps that I will
show you, it will be as easy for you as 1, 2, 3. Just think,
you are on your way!
Remember, it is very important to start saving your
money as soon as possible, or as my dad usually says, “The
younger the better”, because of how compound interest
works for you. Whatever age you choose to retire at, it is

important to feel that you will be financially secure; at least I
know that’s what I want.
I feel that young adults going into the “real” world”,
should be prepared about what financial obstacles come their
way. It is sad to say that none of us ever took a class on
personal finance in school, yet they say you learn all the
important subjects there.
If the education system would realize that everyone
has financial struggles after they graduate or rarely few know
how to handle their money correctly, they could focus on this
important subject and teach it. The education system needs
to see that after you graduate and receive your diploma, not
many students know anything about money management.
This is why it is so important that you follow what I
am about to teach you and apply it to your situation.
Do not focus on what you have not learned,

but focus on what you can change
Tomorrow is your future and it is up to you, what

you do with it. Do not look back a year from now and wish
that you could have done something differently.
Everything in life takes patience and practice. That is
how I learned and understood everything I wrote about in
this book. I have been fortunate enough to grow up with all
this information drilled into my head. When I was young,
waking up on weekends, as I went into the kitchen I would
find my dad on his computer looking up how his stocks were
doing that week.
My dad would always have me sit on his lap and
explain to me how what he was viewing worked. Even
though I did not understand any of what he was saying,
while showing me how much my investment account had
grown, or what percent my stocks had increased by, it all had
to have had some reason behind it. All I would want to do
was watch TV or be on my computer, as every kid did. Now

that I look back and see that no one understands how or why
his or her money grows, I appreciate everything he showed
me.
Let me show you the steps that I have learned and
that I am taking at a young age to become a millionaire…
If you do not know why you have to save,

you will not do it
CHAPTER 1 – MY PLANNING STEPS
Planning is Important
I feel that the first step to reaching an important goal in

life, it is to always have a plan of action
If you think about it, everything in life has to have a plan;

it’s how things get done.
When I was 14 years old, one of my favorite TV
shows to watch was “My Super Sweet 16”. Drooling over
the parties these parents would throw for their kids, I began
dreaming of one day having a birthday like the ones before
my very eyes.
The parties these kids had were over the top which is
something I believe would be an understatement. These kids
would have the best of the best with an outrageous theme
that would surpass every 16th birthday party I have ever
attended. Because these kids came from wealthy families, it

was common for them to get a luxurious car as their big
present at the end of the show. Watching what car each kid
got would always be my favorite part.
I have always been a planner, so wanting to know
what car I would be getting for my 16th birthday was no
different. One day I asked my dad, “Papa, Are you going to
buy me a car when I turn 16?” Imagining he would say yes,
I was quite surprised when he responded the complete
opposite of what I thought would be his answer. I looked
confused.
“Are you crazy? You think I’m going to buy you a
car?” Why wouldn’t he buy me one? I thought all kids’
parents bought them cars when they turned 16. Boy was I
wrong to think so. After explaining it to me, my dad told me
that we were going to save up for my car. Also, that he
would buy half of it and I would pay for the other half.
One thing I have always admired about my dad is
that he has always had a plan of action for “everything”. My
car was no different.
THE PLAN FOR MY CAR
Once I hit the reality part of getting a car, I realized

that it is actually a lot of money to buy one. I started
freaking out that time would go by faster than I thought it
would. Every one says that “time flies as you get older” and
that was what it was starting to feel like for me. My dad was
very good with numbers, always has been, so when he told
me that my first car would be between $15,000 and $20,000
dollars I knew that there was a good reason behind those
figures.
At 9 years old, my dad opened up a stock investment
account for me at Scottrade brokerage. Since I was learning
how to invest in stocks, my dad told me just to choose
companies I knew of. You know the well-known big name
brands such as Apple, McDonalds, and Starbucks. Why?

Because these companies grow every year with the way they
brand and sell their products, this is why most people know
of them. With the companies I chose, when I opened my
account at 9 years old, to when I decided I wanted a car at 14
years old, I already had $1,800 dollars.
The reason my dad opened this account in the first
place, was for when I would one day buy my first car. He
had already planned ahead some years into the future.
Knowing that I had $1,800 to start with, we figured that I
needed $13,200 more to get to a minimum of $15,000 for my
car.
Using a “financial calculator” online, the financial
calculator had us type in the following information; how
much money I was starting out with, the percent at which my
money would grow and the years that it would take.
How much money would my dad and I have to invest
every month to have the $13,200?
The answer was = $300 a month
$13,200 in 3 years or 36 months @ 10% interest
My Money Money Monthly

Goal I had I needed investment
$15,000 $1,800 $13,200 $300
Since my dad told me he would split the cost of the

car with me, we divided it by two. If I came up with $150
and my dad would put the other $150 every month, we
would slowly be sharing the cost of the car. We planned
ahead.
WAYS I EARNED MONEY

You are probably thinking, “Where did she get $150

dollars to save every month at the age of 14 years old?”
When I was 12 years old and my brother was 10
years old, we wrote a book with my dad called “We are
Buying a Million”. Similar to this one you are reading but
for children on finances.
I figured that if I sold 10 books a month, I would
make $100. I would also babysit and make $10 an hour for a
minimum of 3 hours for $30 dollars, four times a month, for
total of $130 dollars. This already had me earning around
$230 dollars. When my brother and I were 6 and 8 years old,
we started our first business recycling plastic bottles and
aluminum cans.
After the tragic incident of September 11, 2001, his
first grade class brought in plastic bottles and aluminum cans
to help raise money to send to the victims it affected. When
my brother told my dad what his class was doing, he liked
the idea so much that he made us do the same and told us we
could start a business.
Without knowing it, my brother and I had our first
business, “the recycling of plastic bottles and cans”. Every
month we make about $30 dollars each, more or less,
depending on how many bottles we get. The amount has
increased every month since we started.
Another way I make money is when my dad does his
financial seminars; he brings my brother and me on stage to
explain to the audience certain examples of what we have
done to earn money. He pays us for this, so at the end of the
month I was making over $200 dollars. This is how I have
my $150 and more.
The interesting part is that I earned more money from
helping my dad with his financial seminars, than I earned
from the first jobs I had.
My dad would tell us to look for ways of making more

money per hour than the minimum
Being consistent with saving and investing my

money, I ended up getting my car in 30 months instead of the
36 we thought it would take. I bought a White VW Jetta and
I have definitely gotten a lot of use out of it, not to mention
that it will be passed down to my brother. It pays to plan
ahead.
The reason I was able to purchase my car in a shorter
amount of time than what I was hoping for, was because I
had a plan of action. I also invested my money instead of
saving it.
If you do not have a plan of what you want in life, it
will never happen. Everything in life takes a plan of action.
A house needs a plan in order to be built, an education needs
a plan to know what degree you want to get, and a business
needs a plan in order to work, it is called a “business plan”.
Some people think that in order to plan for the future,
you have to take giant steps toward achieving that plan of
yours, but that is simply not true. If people ended up from
start to finish in one giant leap – it would be a road full of
crazy turns and curves. Not everyone reaches success by
having it easy; there are always unexpected roadblocks along
the way but if you plan ahead, it is easier to get there.
SPENDING NOW
It is no surprise that teenagers have a hard time

making money. It is not easy trying to land your first job
because not many teenagers have a lot of experience. It
could also be that the economy is in a bad cycle and
companies are not hiring. The unemployment for teenagers
from the ages 16 to 24 years of age in 2012 is over 20%. If
teenagers have a job, they will end up living from paycheck
to paycheck, meaning that they will spend their entire
paycheck, sometimes even days before they receive the next
month’s paycheck.
From what I have seen over the years, teenagers are

good at spending money and bad at saving.
Most companies tend to spend most of their
advertising dollars aiming toward kids and young adults.
The reason that companies spend so much money on
advertising is because they know that we will want their
product or service. We will wait for our next paycheck, or
even beg our parents for money, just to purchase that item
we saw on TV, on the radio, or saw it online or in a
magazine ad. When all we do is want, want, want, it is hard
to let ourselves be able to put some money aside for savings.
We just spend our money and never plan for the future.
One of my goals is one day being able to have
$1,000,000 dollars. Since I was 4 years old, my dad has
been helping me reach my goal. It has been easy for me
because I have done it in small steps or as my dad always
says, “Little by Little”. Since I started saving, I have never
taken any money out; I’ve only added money to my
investment account.
This is the plan, put money in and not take it out
Now that I am 18 years old, I have $50,000 dollars

saved up in my investment account. I feel very fortunate to
have this much money already saved up being how young I
am. I know that very few kids, even adults have this kind of
money saved up.
I know that I am on my way to accomplish my goal
The reason I am writing this book is to show people

that it is very simple to save your money, you just need to
understand a few concepts. I want to show people that by
having a plan of action, everything becomes easier.
If you do not have a plan of action, you cannot get
anywhere. When a pilot is flying a plane, he has a plan of
how he is going to get from one destination to the other.

When you take a trip or go on vacation, you have a plan of
what you are going to do with your time once you get there.
A friend once gave me an example of why it is
important to have a plan. My friend Corinne, a life coach, is
very well known for teaching kids the importance of
knowing what they want to do. She teaches kids how to plan
where they want to be in the future and helps them make it
easier to get there. One of the ways that she teaches the
importance of having a plan is by referencing it to a puzzle.
Let’s say you have three teams. Each team has a task
of one puzzle to put together. The first team has a puzzle
with a picture of what the puzzle will look like. This will
make it very easy for the team to solve the puzzle because
they already know what it is going to look like in the future.
The second team has a puzzle with no picture. This
is going to make it a bit more challenging for the team
because they will have to figure out the puzzle on their own.
They will most likely finish the puzzle, just not as fast as the
team that has a picture of what it will look like.
The third team has a puzzle with a completely
different picture than what is actually on the puzzle they will
be solving. This is so that we can see how long it will take
the team to work together and figure out that they are trying
to solve a completely different puzzle. I really liked hearing
this example because I felt that it was the perfect reference
to show others, why it is so important to know where you
want to be at the end.
Make a plan of action and follow the steps one by
one. With a plan, it is much easier to succeed.
The Question is… WHAT IS YOUR PLAN???
It seems as if everyone has a dream to one day be

rich. When kids are asked, “What do you want to be when
you grow up?” The usual answer is a job that involves
making a lot of money such as a doctor. What about having a

business? As kids get older, they start to realize that they
have to work hard to earn a great income to be able to
provide for their family. While everyone says, he or she
wants to have wealth; what steps do they take to achieve
their goal?
One of my goals is to have a business and not a job
What is the goal you have to become rich? Have you

thought about it? Which of the following three plans of
action do you think will get you faster to accomplishing your
goals in life?
A. Through having a Job and not saving?
B. Through having a Job and saving monthly?
C. Through a Business and saving monthly?
The reason I personally feel that it is important to

save your money is because when you are older, your money
can take care of you and help you live without stress.
Growing up in Los Angeles, California, you notice
many things as you get older. In elementary school, you
start to notice the clothes that your friends are wearing, who
has the cute outfits and who has the not so cute outfits. In
middle school, you start to take notice more of the
electronics that kids carry with them in their backpacks.
When you get to high school, it starts to become about the
whole package.
You really notice the kids who have a lot and the kids
who are not so fortunate. On the other hand, with my
parents having taken me to different parts of the world and
experiencing different situations, I learned to never judge
anyone by the material things they had.
I think that the material things that kids have today
has to do with a couple of things; First, the income that their
parents make, because they may or may not be able to afford
the item that their child wants. Second, it has to do with the
attitude of the child; how they are behaving and if they have
handling their responsibilities.
Growing up my dad made a higher income than my
mom did, but I understood that. Sometimes it would feel
that I had more with my mom, but that might have been
because my brother and I spent more time at her house.
Even though she would not always be able to afford
something that my brother or I asked for, we knew that if we
kept having positive attitudes and following the rules of her
house, when my mom had the money, she would get it for
us.
We learned to follow rules from my

mom and dad to get what we wanted
Following the rules and having a positive attitude

was very important to both of my parents. At times, it
seemed that my dad followed the rules more than my mom
did. My dad would always remind us that there are rules we
have to follow in the house. My mom would be a bit more
laid back and even though we had rules to follow, she
wouldn’t remind us a lot about them.
Even though my dad made a higher income than my
mom did not mean that he wasted his money spending it on
things my brother and I wanted.
I have received a first hand experience of having a
parent who makes a middle class income, and a parent who
makes a much better income. Not that a middle class income
is bad but my personal plan for the future is to make a very
good income. I do not want to feel like I am struggling.
That is why planning for the future is very important. I think
that by already having this personal goal already set in mind,
it has allowed me to begin taking action, so I can have what I
want in the future.
I have been around lots of parents, not just mine, who

I have watched struggle. I know if I take action now, I can
avoid that problem in my future.
HAVING TIME
What I would like to have in my future is time. Not a

lot of people have the ability to have time to do the fun
things they want to do, relax or spend more time with their
kids. I want to be able to choose not to work, if I do not
have to, when I have children.
I now see parents who are between 40 and 50 with
children who wish they did not have to work and be able to
spend more time with their kids. I would bet that most of
these parents do not have money saved up to retire, and they
live month to month or have a job. Most parents will have to
work past the retirement age and this is something I do not
want to happen to me.
I have always heard a funny story that my dad tells
the people and me whom he conducts trainings seminars for.
When he tells people the reason how he decided he wanted
to have a business instead of a job, he tells the following
story.
SNOW BIRDS
“When I was growing up in Mazatlan, Mexico, I

loved to surf and be at the beach. I worked as a bellboy at
the hotels on the beaches, and I always saw retired
Canadians and Americans fill up the beaches during the
winter time”
They are known as the snowbirds
“Snowbirds are people who, during the months of

November to May, every year, they live in the beach cities of
Mexico. They are Canadians and Americans who are retired

and go to live in Mexico. I would ask myself how can they
be at the beach all the time and not have to work? Now I
understand that they planned for retirement all through their
working lives.
I figured if I started to save early, found myself a
business instead of a job where I could be my own boss, I
could be at the beach all the time with the rest of the
snowbirds”
I really enjoy hearing this story when my dad shares
it with others. It shows people that the moral of the story is
that if you plan ahead for the things you want in your life, by
taking small action steps, anything can be possible.
Not everybody is born with a million dollars
It is always important to have an idea of how you

want things to turn out, which is why you need to have a
plan. Just like I had a plan to write this book, I planned how
long it would take me to write it, how many chapters it
would be, how many pages each chapter would be and I
planned for when I wanted to have it done by. I just needed
to be consistent.
MY GOALS
Right now I am planning for things that I want to

have in my life 20 years from now in the future.
* In 20 years, I see myself having a family

* Living in the new house of my dreams
* Being able to travel
* Being financially stable
* Not having to wake up and work for anyone
* Always having a right attitude
I want to be able to be my own boss, and earn a

minimum of $250,000 per year. The reason why I want to
make $250,000 per year is that to me, that number means
that I will be able to live the type of lifestyle that I want to
without having to worry if I have enough money.
My goal of $250,000 is because when I was talking
to my dad, he said that when he was 30 he was making
$250,000 dollars per year. When he started making that
amount of money, he felt that he finally was able to be
financially independent. If I make that amount of money, I
can be able to save more on a monthly basis.
$250,000 per year is $20,833 dollars per month!
If I am able to make $250,000 a year with my

business, within a couple years before starting a family, I can
see myself being financially secure. My plan has always
started by making sure I saved.
Now that I know that having a business would make
it easier to earn that income, in 2011, I started a business in
the health and nutrition industry. I am helping people get
healthier while at the same time, helping others start their
own business through my company.
PLANNING YOUR GOALS
I will give you an idea how to plan and reach your

goals. Each goal has a different time limit, so you need to
have an idea how long it will take to achieve it. There are
three types of goals, short term, medium term and long term,
let me give you an example:
Emergency Fund (Short-term goal)

My father told me I always needed to have at least 6
months saved up of my total fixed expenses; My monthly
expenses are $500 dollars x 6 months equal $3,000 dollars.
A short-term goal can be a laptop, the cost $800 and you

plan to have it in 6 months. $800 divided by 6 months =
$133.33 per month.
Others short term goals:

Furniture
Vacation
Television
Buy a Car (medium term goal)

You want a car that costs $15,000 dollars and you
want it in 3 years. You can try to save all the money or save
half of the money and get a loan for the other half. $15,000 x
36 months = $416.66 per month.
Other medium term goals:

Investment for a business
Collage education
Buy a House (long-term goal)

To buy a house you need at least 20% down payment
of the cost of the house. If the house cost $250,000 dollars,
20% is $50,000. You need to save $833.33 per month to
have the 20%. $833.33 x 60 months = $50,000.
Other long term goals:

College education
Second Home
One Million dollars
PLANNING CHART
Goal Priority Cost Time Interest Mo.

Mo. Savings
Emergency 1 $3,000 12 mo 1% $247.25

Fund
Down 2 $50,000 60 mo 8% $567.15
Payment
Million 3 $1,085,660 360 10% $500.00
Dollars
Finally, understand that if my dad did not get me

started saving with a piggy bank and then teach me to invest,
I would not have the money that I have in an investment
account today.
Remember, time flies and that is why you could be
planning for your future to have what you want. You do not
want to say in the future,
Where did the time go?
An example of someone I know that had an excellent

plan is my mom. In 2011 she started her own clothing
company and did over 1 million dollars in sales her very first
year.
She knew that she was going to need a certain
amount of money to start her business. At the beginning, she
did not have enough money to buy everything she needed, so
she got a loan. She planned how much money she would
need to make in order to pay back the full loan on time. This
was a very smart idea on her part because this allowed her to
plan ahead. With the plan my mom used, she was able to
start her new business with no financial stress and now her
business is very successful.
Things are accomplished with a plan
When I decided that I wanted to write a book on my

own (as mentioned earlier in this chapter), I asked my dad if
he could help me come up with a plan. We went over how
many chapters I wanted to have in this book, and how long it
would take me to finish the chapters, if I did indeed stay on

track. Writing this book has definitely been an experience
because I am learning new things along the way.
By having a plan of action for writing my second
book, it has taught me how to schedule time. I have learned
that time is precious and goes by way to fast. That is why
having a plan is such a good idea. In the future, we can look
back and say, Wow, “I actually accomplished a lot of
things” because of the plan that I followed.
In 20 years, I would love to say that the business I
started in 2011 is successful. I want to be able to say that I
have helped many people get out of financial troubles and
have changed their life in positive ways. I know that in 20
years, unbelievably, some people will still be paying off
college loans they got today.
I want to be able to prevent you from being in that
situation by showing you the financial tips I am talking about
in this book. I do not want to work for anyone, which means
not having a boss and being financially secure.
I would love to be able to go on vacations whenever I
want to as well, and making a minimum of $250,000 per
year. In 20 years, I want to say that,
I have a million dollars in investments
In the following chapter, you will learn how

important it is to look for ways to earn more money than the
minimum wage. My dad taught me that it is important to
earn two incomes in the same amount of time.
CHAPTER 2 – LEARNING TO EARN

MONEY ($8.50 per hour)
With a business you earn profits

MY FIRST JOB
As we enter our teenage years, we strive for more

independence. We learn that when our parents won’t buy us
certain things that we want; it is time to have our own way of
earning an income. This is where your first job comes into
play. The importance of earning our own money is to learn
what becoming independent really is. That is exactly what I
learned when I started my first job.
When trying to find your first job, it can be very
difficult especially with the way the economy is today in
2012. If you do not have any prior job experience, it can be
difficult to be hired but everyone must start somewhere.
I got very lucky when I was hired at a self-serve
yogurt shop called Menchie’s. Starting my first job, I
learned a valuable lesson that I will always mention to
others. If you get a job, make sure you have more then one
way of earning an income. It is very important to have more
than one income because you can make double the money in
the same amount of time you work.
When I first was hired, I felt overwhelmed with
happiness. I thought that I would finally be able to be on my
own, by not having to ask my parents for money for the
things I wanted to buy and I could splurge on clothes and
other things that I wanted. Now I could decide for myself
whether it was worth purchasing that item.
When I got my first paycheck, I was so happy to have
earned it all on my own. I had put in my own time, hours
and hard work to have this check in my hand. I told my dad
how much it was for and he asked me a very important
question, “How much did they take out for taxes?”
I asked myself, what are taxes? I thought; taxes?
Nevertheless, I had earned all this money on my own. Why
would someone keep part of my money? Since I had never
worked a job before, I did not know that when you got paid,
the government would take out a portion of your earnings for
federal and state taxes, disability insurance, and

unemployment, just to mention a few. As you read ahead, I
will explain what you need to know about taxes and how to
protect yourself from this enemy to your income.
A BUSINESS IS BETTER THAT A JOB
I have learned that there are three ways to earn

money, by the hour, by a salary, and by profits. If you make
money based on a salary or working by the hour, you are
limited to how much money you can make; your income is
limited to the hours you work.
If you make profits, there is no limit to how much
money you can make; you are your own boss. This is the
key to making more money. Profits are only possible to
make by having your own business. My dad has always
taught me that it is much better to have a business for the
following reason:
You are not limited to how much you can make
Why is a business better?

A business is better simply because once you make it
work for you, you are able to control your time and you can
work whenever you choose. There is no limit to the income
you can earn, and you can spend more free time as you
choose to spend it – but the best reason, is that you are able
to
To pay fewer taxes
With the way the economy is now, people are having

a hard time finding a job. Most companies are not hiring
which makes it hard for someone who does not have a job to
provide for their family or even themselves.
Since I was born, both of my parents have had a

business. By them having a business my mom and dad were
able to be their own boss and choose the hours they wanted
to work.
Because my parents worked their business from
home, they were always there for my brother and me when
we had something important going on like a sports game or a
school event. Having a business allowed for my mom and
dad to have a lifestyle they chose to have and not a lifestyle
they had to have.
I have many friends whose parents have jobs and so I
have witnessed both sides. My friends’ parents, who have
jobs, were sometimes not able to come to an important event
their kid was performing at school or participating in an
organized sport.
Little by little, I realized from a young age that I
always want to be able to go out on the weekends or maybe
extend a vacation if I choose to and one day (when ready) be
there for my kids as my parents are there for me. By having
a job, it makes it impossible since you are paid by the hour
and don’t have control of your time.
Although my mom and dad both have a business,
they both started working jobs at a very young age. My
dad’s first job was selling newspapers on the street in
Mexico at age 12. My mom’s first job was working at a Gift
Wrapping store at age 16. I really admired the fact that they
started to work at such a young age.
I have always known that I was going to have my
own business when I was older, but my dad wanted me to
know what it would be like to have a boss and have
scheduled hours to work. That is why I got my first job at 16
working at Menchie’s.
A lot of my friends started getting jobs to provide
themselves an extra income around the age of 16. Most were
babysitting, some worked at Starbucks, some were hosts at a
restaurant, and some had other jobs. I find that16 is the
common age most kids start working their first job in the
United States. It is understandable since at 16 we do not
want our parents to buy our clothes for us anymore; we want
to buy the things that we like to buy. “That is why my dad
started working at 15 years of age at a hotel”
By having a job I got to understand what it was like
to get paid by the hour. I have known what it is like to make
a higher income, not by the hour at a job, but by having done
financial trainings with my dad and brother. The first book I
wrote with my brother called, “We are buying a million”
would sell at the training seminars and did very well. We are
paid for doing the training and we would make a profit from
the books that were sold. This is where I learned the
following,
Two incomes at the same time are better than one
I realized that I loved earning more from profits than

working by the hour because I would make more money and
I could buy the things that I wanted to buy. I also learned
that by having a job you do not get to choose the hours you
want to work and sometimes they would not schedule me
more hours to work, so I was limited from making more
money. It got very hard for me when I was working in high
school during Friday and Saturday nights, because I could
not be out with my friends. By working, I was not able to go
parties with them and I was missing all the fun. That is what
my dad wanted me to experience when working at a job.
Overall I am glad that I got to experience what it was
like to be paid by the hour, have a boss, and work for
someone else. It helped me figure out that having a job,
Is not what I want in my future, I want

to have my own business
WHY A BUSINESS
My dad said that we learn about taxes in our first job

because they don’t teach it to us in school. When I got my
first paycheck, I sat with my dad while he explained the
money they withheld for taxes. Let me share with you what
they are by showing you one of my first paychecks:
My first income was $555.90 dollars before they
withheld taxes from my paycheck (see earnings). The
following graph is what I got from my job with my
paycheck:
Earnings Hours Rate This YTD YTD

period Hours Earnings
$555.90 65.40 $8.50 $555.90 65.40 $555.90
Withholdings Description This
Period
Social
Security $34.47
Medicare $ 8.06
Federal
Income Tax $19.01
California
Income Tax $ 3.16
Disability $ 6.11
TOTAL TAX $78.81

NET PAY $485.09 $485.09
If you notice I made $555.09 dollars (I worked 65.40

hours @ $8.50 dollars per hour) for my first paycheck, they
withheld $78.81 dollars or 9.27 hours of work…
So my paycheck was only $485.09 dollars.
This was 14.59% for taxes from my paycheck
This is a lot if you are only 16 years old; imagine

what parents pay in taxes if they have a job.
If you have a job you first pay for: Social Security (for
retirement), Medicare (for medical after you retire), Federal
Income Tax, California (state) Income Tax and Disability
(if you get hurt at work).
If you have a business, you will have to pay for
Social Security and Medicare, but you may pay or not pay
for Federal and State taxes. This depends on the expenses
of the business.
HOW YOU PAY TAXES IN A JOB AND A BUSINESS
JOB BUSINESS
You Earn You Earn
1rst Pay 1rst Spend
Taxes Your Money
Get Check You Have
Net Income
Then Then
you Spend Pay Taxes
If you have a job, “you first pay taxes and then

spend the money” (see 1st column), but if you have a
business, “you first spend money and then you pay taxes”
(see 2nd column). Don’t forget this! Let me give you another
example:
JOB BUSINESS
$30,000 Income $30.000 Income
-$ 4,500 15% Tax -$20,000 Expenses
$25,000 Earned $10,000 Net Income
$ 1,500 15% tax
On Net Income
Notice on the 1st column, the person with the job

pays a tax of $4,500 dollars, but the one with the business
pays only $1,500 dollars on the $10,000
net income.
A business pays fewer taxes because of expenses
THEY DON’T PAY TAXES
The only people that don’t pay any taxes in the

Unites States in 2012 are the following:
1. A single person who earns less than $8,700 dollars

per year.
2. Couple’s who earn less than $17,400 dollars per year.
What you just learned is very important to

understand. Taxes are one of the biggest expenses a person
who works have from their income. In chapter 5, I will
explain more about taxes; and what you can do to pay fewer
taxes.
I HAVE LEARNED THE FOLLOWING
1. It is better to earn money with a business.

2. Making two incomes at the same time is better
than one.
3. You pay fewer taxes with a business
I think that everyone should experience having a job;

even if they do not know they want to one day have a
business. Having a job might encourage you to decide to
start your own business, just like it did for me and helps you
to be responsible.
I am glad that my parents wanted me to experience
having a job, but I will not ever have one again because I did
not like working for someone else. I want to work on my

own time and be my own boss as well as being able to be
financially secure.
My opinion of working on a job or having a business
is that you will learn a lot from trying both.
I learned many things from having a job that I would never
have learned from having a business.
REMEMBER 4 THINGS:
1. Always look to earn more per hour than minimum

wage. It’s better to earn $15 dollars than $10 dollars
per hour. Example, a lawyer in the United States
earns $200 to $300 per hour.
2. Look, to start your own business because you will
earn profits and you are “not limited” to what you
can earn. With a job, you are limited on how much
you can make.
3. Learn how taxes work and how to pay the minimum
and not more than you have to. Taxes are the biggest
expense we have from the money we make.
4. Always look for opportunities while you are working
to be better in the future. You never know when
thing will change.
In the following chapter, you will learn how to

control the money you make from your job or business.
Regardless of whether you have a job or a business, you
need to know how to control the money you make.
CHAPTER 3 – CONTROLLING YOUR

MONEY (A budget)
Where did my money go?
Have you heard anyone say that?

I would guarantee most of you would agree that

shopping or spending money is one of our closest pals; this
can be a good and a bad thing.
Almost everyone I have met loves to spend money.
There are always new products on the market that draw us to
and want to purchase immediately. This does not mean that
we can or cannot buy these things, it is just very important
that before you buy something, you know if you have money
to spend. You need to think about if you really need what
you are spending money on or if you just want it.
My first budget
When I was 9 years old, my dad, for the first time
explained to me what a budget was. On a piece of paper, he
had me write down his monthly expenses. He explained to
me how much money he spends per month on everything.
Since this was my first experience with a budget, I was too
small to understand anything he was explaining to me.
One day my dad made me look at my checking
account and because I wasn’t keeping track of it, my surprise
was that I didn’t have enough money in my account, I was
overdrawn.
My dad told me that the reason it was so important to
have a budget is to keep track of the money we make and
spend every month. You can organize it and know how
much money is coming in and going out every month.
When I got my first job, my dad made me do a
budget so I could keep track of my monthly expenses. He
showed me how much I was going to spend on gas for the
car, on clothes, when I would go out with my friends, saving
and other things.
It is very hard to keep track of your income – the
money you have coming in and the money you are spending.
By having a budget, it has been very easy to keep track of
my expenses. Just because you have a budget does not mean
that you cannot follow through with it.
By not following through with my budget, I ended up

having to pay the bank an extra $35 dollars in fees. One
time I forgot to look at my account and check my balance, by
not keeping track, I ended up spending more then I had in
my pocket. This cost me money in bank fees.
Going to college
When I went to college, I got a credit card to help pay for
emergencies and to start establishing credit. Since I did not
have a job during this time, I did not have an income coming
in; all I did was spend money. Having a credit card can be a
very dangerous thing for anyone, especially teenagers.
When you cannot see your money physically disappearing,
you feel like you can spend any amount you want. You do
not realize that you may not really have the money you need
at that moment.
You notice it when you get the bill
Spending money can be a very addicting habit. Like

every girl, my favorite thing to spend money on is clothes. I
love buying new clothes and planning fun outfits that I can
wear. I love to spend money, especially when I have worked
very hard to earn it. I feel that, because I earned it myself, I
can spend it on things that I want to buy.
I love being able to spend my own money because I
earned it and do not have to ask my parents for it. Even
though I love to spend money and could spend it all very
quickly if I choose, I am still very careful with what I spend
it on.
I make sure that I still have money in my pocket at
the end of the day by saving and investing it. This is very
important because I make sure I don’t just splurge all of my
hard-earned cash.
“I’ve learned to save and invest for the future”

My friends love to spend money on clothes. I think

most girls do. It’s what makes us happy. I used to think that
boys were different from girls but concerning what we like
to spend money on, my brother is worse than I am for
spending money on clothes.
My brother loves to spend money left and right. Not
just on clothes but also on electronics and things he enjoys
doing with his friends.
When you spend money and don’t control what you
spend it on by not following your budget, you do not know
how your money is disappearing. You may think you have
your money under control, but you really do not because you
don’t keep track of where it is disappearing to – or on what
things you spend your money on.
“This is the reason my dad showed me his budget”
MY 4-ENVELOPES
When I started to keep track of my money by doing

the 4-envelope accounting, it made things simpler. It really
helped me keep track of the money I had because I had a
separate envelope for each category that I wanted to spend
money on.
For example, I made an envelope for savings (you
always want to save first). I made an envelope to save up for
a house, and things I wanted to buy. I also made an envelope
to start saving for the next car I wanted to buy.
The idea is, to have 4 separate envelopes for different
expenses or goals you have. This helps you to divide your
money equally into 4 envelopes for things that you want.
Each envelope will get you to the goal you want to achieve.
People do not understand that you can save for many
items at one time; and for me it is easier to save this way
than to save for one expensive item at a time.
I learned that by using the 4-envelopes to help me

keep my money organized, you can save little amounts for
anything you want.
Separating my money
When I started to earn more money per month, I
started piling all my money together; not keeping track of
what was coming in or going out. I realized it was not smart
for me to spend it all and not save anything. My dad told me
I really needed to start organizing my money or I would
never break this bad habit. I really understand why it is so
important to organize your money now. I started out with 4-
envelopes but over the years, I had added a couple more. It
really is up to you how many envelopes you want to have.
CAR SAVINGS SPEND HOUSE

30% 30% 20% 20%
My brother Kostas has always been the worst of the
two of us for keeping track of his money. Once he saw that I
was having a lot of money for different things by keeping
track of my envelopes, he started to do the same thing. It
really helped him start to control his money better.
There are many ways people can keep track of their
money. To me a budget is a better way to help you keep
track of it. It is a way that you can see what you are
spending your money on every month. It can also be a
learning tool for some people. If you look back on past
budgets that you have made and you see that there is one
particular area that you have been spending too much money
on, it helps you to realize you need to spend less in that
expense. By checking your budget often, it will help you to
save more money at the end of that month.
You should definitely keep a budget

By keeping a budget, you will be able to tell

throughout the year if you are spending money in the right
areas.
The first budget I ever made for myself was for my
first car. When I was 14, I planned to have a car by the time
I was 16 or 17. I knew if I planned a budget, it would be
easy for me to follow the steps to accomplish this goal to buy
a car. This was very important.
Remember, when I got my first job, my dad sat down
with me to help me see how much money the government
was taking from my paycheck for taxes and why they did it.
He also helped me make a budget with the money that I had
left over after they had taken money out for taxes.
It’s not what you earn every month; its how much money
you keep every month that counts
Understanding the concept

It is always important to save money after you pay
your expenses because this assures you to have money left
over to invest. You want to be able to make a monthly
payment to your investment account so your money can
grow.
The following chart gives an example of 2 teams. If
the Dodgers have 6 runs and the Yankees have 5 runs in one
game, the Dodgers are going to win by one run.
This is like earning $6,000 and spending $5,000; But
if the Dodgers get 6 runs and the Yankees get 7 runs in one
game, then the Dodgers are going to loose.
This is like earning $6,000 and spending $7,000.
You will get into debt. It goes the same for what you earn
and spend every month, as you will see in the second chart
below.
Runs Runs
Dodgers 6 6
Yankees -5 +7
Win +1 Lose -1
The following chart gives a different type of example

with 3 people earning different amounts of money. The first
person earned $1,000 dollars and spends $975; they saved
$25, which is good because they still have money left over.
The second person earned $5,000 dollars and spent
$5,100 dollars. This is bad because the second person is now
in debt by $100 dollars. They need to come up with a way to
pay back the money they overspent. The same thing that
happened to the second person happened to the third person.
The third person earned $10,000, but spent $11,000.
They do not get to keep anything in their pockets after
spending $1,000 more than what they really had.
Earn $1,000 $5,000 $10,000

Spend -$ 975 -$5,100 -$11,000
Keep $ + 25 -$ 100 -$ 1,000
WHICH BUDGET IS BETTER?
As you can see in the chart below, it does not matter

how much money you make. If you spend more money than
they earn, you will not have enough money to save and
invest in your investment account. You will slowly start to
go into debt. If this starts to happen to you every month, you
will run into big financial problems.
Income $1,000 $1,000 $10,000 $40,000

Expenses $ 975 -$1,100 -$10,000 -$40,000
Total +$ 25 +$ 100 -$ 1,000 -$ 1,000
After my dad showed me what a budget was when I

was 9 yrs old, he went over it with me a couple more times
after that. At 16 years old, when I started working, my dad
sat down with me to help me set up my second budget. He
helped me organize myself with how I was going to spend
my money. I was going to be spending money on gas and
insurance for my car.
I was also going to be spending my money on other
various things. Owing to my dad for helping me to get
organized, I felt prepared for what I was going to do with my
money.
My Budget at 16
TWO PARTS TO A BUDGET
A budget has two parts to it:
1. The Income Part – The amount of money you bring

in as an income every month.
2. The Spending Part – The amount of money you use
to pay your fixed and variable expenses off every
month.
BUILDING A BUDGET
The way you build a budget is by starting with your

income – the amount of money you make every month. You
write down the different ways you make an income and list
them with the amount of money they bring in as you can see
in the example below.
Income – Money You Earn
INCOME AMOUNT
1. Salary $ 650.00
2. Baby sitting $ 120.00
3. Selling stuff $ 200.00
4. Allowance $ 128.00
5. Royalties $ 152.00
TOTAL $1,250.00
The second part of building a budget is by making a

list of all the fixed expenses you have such as your rent, car
payments and other things. Put the amount you spend on
those things right next to it, as you can see in the example
below.
This helps you to visualize how much money you are
actually spending a month on certain things. By actually
visualizing what you are spending, it helps you to see if there
are ways that you can cut back on your spending, even if it is
$5 or $10. Little amounts can start to add up very quickly.
You can also notice how foolish

you are with your money
Expenses – The Money You Spend
EXPENSES AMOUNT
1. Mortgage/rent $ 400.00
2. Food $ 150.00
3. Utilities $ 0.00
4. Car $ 150.00
5. Car insurance $ 125.00
6. Gasoline $ 100.00
7. Cell $ 50.00
8. Internet $ 0.00
9. Going out $ 75.00
10. Vacations
TOTAL -$1,050.00
Money left over TOTAL $ 200.00
You need to start to write down your expenses. The

total amount that you spend on your fixed expenses is the
minimum amount you need earn every month from you r job
or business.
If you do not keep track, you will get into debt.
The goal of a budget
For me a budget is a tool that has one purpose. It lets
you have money left over at the end of the month for 3
things.
1. To not get into debt or pay your debt.

2. To save your money.
3. To invest for when you are 60 years old, is called
retirement.
If you implement a budget,

you might not have to work after 50
The reason you want to invest for when you are 60

years old is that 60 should be the age where you can choose
not to work anymore if you do not want to, and you can still
be financially secure with the savings that you have.
A budget is like keeping score at a baseball game, you want

to see who is winning
In the following chapter, you will learn how you end

up owing money without even realizing it.
CHAPTER 4 – YOU OWE MONEY?
You owe how much?

One thing that people never want is to be in debt. To owe

money to someone, a company, or a bank is by far one of the
things that causes the most stress and keeps people from
being wealthy. When you owe money, you are so worried
on how you are going to pay it off, that sometimes you do
not have a solution or a plan for paying your debts. This
may happen because you do not know how to pay off the
amount of money you originally owe, plus the interest. You
then may have to ask a close friend or family member to
borrow money. This causes you to go further into debt.
I see teenagers constantly spending and owing money
to their parents or friends. There is nothing wrong with
spending money because I do it too, but the difference I
notice is that I have always saved money first before I spent
it. Many teenagers I know do not have any savings because
they spend their money first. When I say how much money I
have saved up, they are always very surprised to know how
big the amount is.
The first time I became aware of what owing money
was I would borrow money from my brother. He always
used to have more money saved than
I did. That was the first time I was somewhat aware of what
owing money was like.
However, the time when I truly understood what
owing money was when my mom told me about a family we
knew. One of our closest friends was financially in trouble.
They were $250,000 in debt. They owed a lot of money.
When I told my dad how much this family owed in
credit cards, he explained to me that once you owe a lot of
money just as they did, it is hard to pay off that much.
To owe money is when you borrow money from
someone or use credit cards to buy something and need to
pay it back with interest. Something we do not realize is that
you start to owe money little by little, just the same as how
you can start to save money.
If we aren’t paying attention to the amount of money
we owe, your debt will certainly increase.
The bad part when you owe money is that it causes a
stress level that you do not need in your life; it not only
affects you, but also your family. When you owe money,
you look for different ways to pay it back and it consumes
your energy and a lot of time.
Owing money can get people into a lot of financial
trouble. You can never do the types of things you want to do
such as go on vacations or spend the time with your family.
In addition, when you owe money, you will not be able to
invest it and this will prevent you from becoming rich.
THINGS TO KNOW ABOUT DEBT AND CREDIT
Preventing you from going into debt

 Keep track of your money
 Use a budget every month
 Don’t buy things you don’t have the money for
 Don’t buy things you do not need
 Don’t buy things that will not go up in value, it will
be worth less in the future
 Buy things that will go up in value in the future.
Learn to invest.
 If you borrow money, pay it back right away – get in
the habit.
Be responsible with credit

 Don’t start to owe money.
 If you owe money, start to pay it off.
 Understand how student loans work before you
accept them. They are hard to get rid of.
 You need to build credit.
 It will help you later.

 It shows you are responsible person.
 You need credit to get credit cards, to buy a car or a
house.
 Understand how important good credit is to become
wealthy.
UNDERSTANDING THE RULE OF 72
 It tells you in how many years your money will

double.
 If you divide the number 72 by 10% (interest) = your
money will double in 7.2 years (see chart below)
Doubling your money:

 It can work for you, if you save and invest
 It can work against you, when you owe money
The TIME it takes your money to double:

The chart below shows that if you divide the number
72 by the percent, it will tell you in how many years your
money can double.
Number Divided Years to

By % Double
72 5% 14.4
72 10% 7.2
72 20% 3.6
IF YOU SAVE, it works in your favor:

The chart below shows that by saving your money
with higher interest, the quicker your money will double in
the future.
Amount Interest Amount Years to

% In Future Double
$1000 5% $2000 14.4

$1000 10% $2000 7.2
$1000 20% $2000 3.6
IF YOU OWE MONEY, it works against you.

The reason you do not want to owe any money is
because owing money will work against you. Look at how
fast the money you owe will double.
Amount Interest Years to Amount

Owe % Double Owe
$ 1,000 20% 3.6 $ 2,000
$ 2,000 20% 3.6 $ 4,000
$10,000 20% 3.6 $20,000
THINGS TO KNOW ABOUT CREDIT CARDS

1. They charge 10% to 30% of interest per year.
“It’s hard to get 10% to 20% interest when you invest”
2. Look at how long it takes to pay credit card debt. If

you owe $1,000 in a credit card at 19% interest and
you pay the minimum, it takes 19 years to pay it off.
3. If you use credit cards, pay off what you owe every
month.
Understand the following:

 You want to pay low interest when you owe money.
 You want to earn high interest when you save or
invest.
It’s better not to owe money
Be careful of Student Loans:

If you owe a loan of $20,000 @ 6%, in 12 years you
will pay a total of $28,104.49 dollars if you pay the
minimum amount. Look at the chart:
Start Monthly Total Total Pay Off

Date Payment Payments Interest Date
(144) Paid
1/01/2012 $195.17 $28,104.49 * $8,104.49 12/31/2023
In this chart, the important thing to understand is the

amount of interest you will pay, $8,104.49 dollars and the
date you will pay it off. That is 12 long years, but if instead
you “invest” the $195.17 dollars per month in a Mutual Fund
at 6% you would have $41,880.68 dollars in 12 years.
The average student in 2011 had around $25,000
dollars in student loan debt. Once you have student loans,
you always will have to pay them. A student loan is
different than other loans, because if you file for bankruptcy,
you don’t have to pay regular loans. If you have a student
loan, you have to pay it back. Make sure you understand this.
I had times where I have had to pay back money I
borrowed. I borrowed money from my brother Kostas to
help pay for the very first computer I bought. He has also
lent me money when I needed it. I always make sure to pay
him back though sooner rather than later because
I do not like the feeling of owing money

and being in debt
When I first started driving, I would borrow my

mom’s car to drive around. I would meet up with my friends
to go hang out or sometimes I would drive my mom’s car to
school when she would work from home.
One night I was going to meet a friend and ended up
getting in a car accident. That was my first car accident and
I was lucky I was not injured. Being in a car accident can be
a dangerous thing because there can be serious injuries.
When you get into a car accident not only can you get hurt
physically, but the damage can be very bad to the car as well
and to the people in the other car, depending on how bad the
accident is that you were involved in. This will cause you to
owe money, because you will have to pay off the
(deductible) amount and if you are a teenager, your
insurance rates will go up a lot.
THE DIFFERENCE BETWEEN CREDIT CARDS AND

DEBIT CARDS
The first time I started using a credit card, I did not

understand that it was not the same as a debit card. When
using a credit card, the bank does not take the money out of
your account right away. You wait until the end of the month
to pay back the money for everything you spent during the
month, when you used your card, plus the interest if you do
not pay the full amount.
Using a debit card to purchase something is just the
same as writing a check. When you use your debit card, the
bank takes the money that you spent out of your checking
account right at that moment.
The difference between a Debit Card and a Credit
Card is that by using a Credit Card it is a loan with high
interest. A Debit Card is not a loan; you are using your own
money from your checking account. Because I was not
aware of this, I ended up spending too much money the first
2 months I had my debit card.
The bank charged me an extra $35

every time I went over my limit
They charged me a total of $70 because I was not

careful checking and keeping track of my checking account.
This was an expensive lesson when you only make the
minimum wage. I am glad my dad showed me this so I do
not repeat this mistake in the future.
KEEPING YOU FROM BEING RICH

When you owe money, you are paying mostly for
things that don’t go up in value but go down in value.
Television sets, IPhones, car, and clothes are some things
that go down in value. This means you are getting poorer
and it keeps you from getting wealthy.
Remember, you don’t want to owe money because
you will never be able to save. If you owe money – make
sure you always pay it back.
If you owe money, you will not have money to invest so you
can have a million dollars or more
EXAMPLE:
1. If you are paying $425 dollars for a car payment at

5% interest for 4 years or 48 months, you will pay
$23,080 dollars. The car that you are buying will be
worth less than $23,080.
2. If you invest $425 dollars each month at 10% for 4

years or 48 months, you will have $26,036 dollars.
This is the reason why it is better to save and invest
your money rather than spend it.
Now you know which of the two previous examples

is better.
HOW TO GET OUT OF DEBT
If you do not know how to get out of debt,

you will never get out
When people are in debt, they don’t know how to get

out of debt and they do not know “how long it will take to
get out”
Let me give you a simple plan that my dad teaches to

people on how to get out of debt.
First Step: write down the following three things:

The name of the debt, the amount you owe and the monthly
payments you are paying.
Name Amount Monthly

Owe Payment
Credit Card $2,500 $ 95
Car $5,300 $225
Second Step: Divide the amount you owe by the monthly

payment and put it in the 4th column of the next chart. Do
this for each debt you owe.
1. $2500 % $ 95 = 26.31 payments left to pay

2. $5300 % $225 = 23.55 payments left to pay
3. Write down 26.31 and 23.55 in the 4th column

“months to pay”
4. In the 5th column put #1 with the lowest number
23.55 then #2 with the next highest 26.21. You
do this if there are other debts. (see the chart)
5. Notice in column 3, “Monthly payment”, you are
paying every month $320 dollars to debt ($95 +
$225 = 320 dollars). You are not saving this
money.
Name Amount Monthly Months Pay

Owe Payment To pay First
Credit Card $2,500 $ 95 26.31 #2
Car $5,300 $225 23.55 #1
It will take you 2.26 years to pay both debts. Now

you have to know how long it will take to pay the loan. This
is a very important thing to know. This way you will

motivate yourself to pay your payments sooner.
If you were saving and investing the $320 dollars at
10%, in 2 years you would have had $8,870 dollars saved.
This is why you want to pay your debt,

so you can save and invest
Third Step: Decide which debt you will pay first. The best
answer is to “finish” paying off the debt that has the least
amount of payments. Look at column #5 on the previous
chart.
NOW that you know which one to pay first, add at least
$100 dollars or more to that payment, this way you will pay
it faster:
1. $225 + $100 = $325 dollars per month is your “new

payment”.
2. Divide the amount you owe the car by $325.
3. $5,300 divided by $325 = 16.30 payments to pay
4. It will take you 16.30 payments instead of 23.16
payments. This is a lot faster.
Next, when you finish paying your car payment, add the
$325 to the credit card payment of $95 dollars.
1. $95 + $325 = $420 this is the new payment to the

credit card.
2. Divide the amount you owe the credit card and divide
it by $420.
3. $2,500 % $420 = 5.95 payments to pay
4. It will take you 5.95 payments instead of 26.21
payments. A lot faster
See the chart:

Name Amount NEW Months

Owe payment To pay
Credit $2500 $420 5.95 instead of 26.21
card payments
Car $5300 $325 16.30 instead of 23.16
payments
HOW LONG IT WILL TAKE YOU TO PAY:
1. The way you are paying, it will take 2.3 years to pay
the debt.
2. With this new plan, it will take only 1.8 years to pay
your debt.
3. That is 4 months sooner and the sooner you will start
to “save and invest”
WHAT DO I DO WHEN I PAY THE DEBT?
You want to save and invest the $425 dollars. If you

invest the $425 at 10% in a stock index fund, look at how
much money you can have:
Years Amount Interest Amount

Save & You will
Invest have
10 $425 10% $ 89,408
20 $425 10% $321,312
Remember: do not touch your money when you are

investing it. You do not want to touch your money because
you want it to grow for as long as it possibly can so you can
have as much as you can by the time you retire. I
recommend you start saving in a ROTH-IRA retirement
account. I will talk to you about them in a future chapter.
THINGS TO KNOW ABOUT CREDIT
 We need good credit to have credit cards and loans.

 Be responsible; pay on time to have a good credit
score, called FICO score.
 Credit Bureaus: Experian, Equifax, and Transunion
keep your credit history. You can get one free credit
report per year. Call each company and make sure
you get one.
 The goal in your life is to always have good credit
because it helps you to get wealthy.
Important things to know what you just learned:

 Never be in Debt, try to avoid it all you can
 Be responsible about credit
 Understand the rule of 72, how it can help you or hurt
you.
 It takes time to save your money, so the earlier you
start to save, the better!
THE LESSON
If you owe money, you will have lots of problems

because you will continue to pay off the debts for years to
come. Because of this, you will not be able to invest and
make your money grow.
If you invest your money little by little over the
years, you will be able to have everything you want. This is
why it is very important that you understand the lesson from
this chapter.
In chapter 5, you will learn the importance of earning
money and paying taxes. We do not learn about taxes in
school and we have to deal with them for the rest of our
lives. Also in chapter 5, you will get a better understanding.
CHAPTER 5 – EARNING MONEY AND

PAYING TAXES
I did not know what taxes were

until my dad taught me
Taxes are what we pay to the government every month from

a portion of our monthly income. The money we pay for
taxes helps the government to pay for things such as
roadwork, national defense, schools, the fire department,
health care, and others.
As mentioned in the last chapter, I learned about
taxes through my dad. He explained to me that by having a
job you pay more taxes than when you have a business. The
reason being is that you fill out different forms to pay taxes.
If you are an employee, at your job they retain money
from your paycheck for taxes every month. At the end of the
year, you declare your taxes through a form called “Schedule
A”.
If you are your own boss with a business, you declare

your taxes through a form called “Schedule C”.
The difference between both of these forms is that
with the Schedule A, you can only report “six expenses” that
I will explain a little bit later. With a “Schedule C”, you
report the same six expenses, and you have up to 422 more.
For example, when you are an employee you are
paying for personal expenses like your car payment, your car
insurance, and your gasoline, in addition to telephone
expenses and things like restaurants, vacations, and clothes.
Because they are personal expenses and you report them on
“Schedule A”, the government does not allow you to deduct
them. Remember…
You want more expenses to pay fewer taxes
Now, if you had a Home Based Business; part of

these personal expenses are allowed by the government to be
reported on “Schedule C”. This gives you more expenses,
allowing you to pay fewer taxes.
What I have realized is that we do not learn about
taxes in school. It is quite sad that teachers do not teach
about subjects that you use in the real world. Taxes are such
an important subject to know about because it can prevent
you from getting into financial trouble with the government.
I am fortunate that my dad taught me about taxes for, if he
had not taught me, I would be helpless with no knowledge
about how they work – like a lot of others.
When I started to work at my first job at Menchie’s,
they made me fill out a W-4 form. I had heard about a W-4
form because my dad had prepared me and told me that
when I got my first job, I would have to fill one out. He told
me that my boss would ask me to put down how many
dependents I had which meant how many people I was
responsible for. My dad told me that that was not the correct
way to look at it.
On the W-4 form, it does not matter how many

dependants you have, but you want to put the correct
number so your employer can deduct the correct amount of
taxes every time they pay you.
This will help you to pay the correct amount of taxes,
so at the end of the year you do not want to owe any taxes to
the government and you do not want the government to
return any money to you because you over paid your taxes.
This is why it is very important to put the correct amount of
“exemptions” or dependents on the W-4 form.
* In the “tax game,” you want to put more expenses on

your tax return to pay fewer taxes
When you pay taxes, you can declare your taxes on two
different tax forms.
1. Schedule A – This form is the one that “Employees”

use.
2. Schedule C – You must have a “Business” to use this
form and you want to claim more expenses to benefit
yourself (see next example).
If you have more expenses, you pay fewer taxes
Schedule A Schedule C
(worker) (business)
Medical & Dental Same
Interest you pay Same
Gift & Charity Same
Federal Taxes Same
Casualty & theft losses Same
Everyday we spend money on personal items that we

need to live on. If you have a job, you cannot deduct these
items or use them as expenses. You can only do this if you
have a business to be able to deduct part of personal

expenses like the ones below.
Car payment $300

Gasoline $150
Car Insurance $150
Car wash $ 40
Phone $ 70
Clothes $100
Restaurant $100
Trips vacation $2400/yr
Internet $30
Computer stuff $50
Others
.
The only way to use these expenses on your tax
return is to have a business. By having a business you will
be able to use the “Schedule C”.
You having a home based business can turn a part of
these personal expenses into business expenses.
As you can see in the chart below, you notice what
percent from personal expenses you can use as a business
expense. For example, the car payment is $300 and you can
take as much as 80% of it as a business expense, which
equals to $240.
* Ask your accountant about the percentages and any tax

questions you have. These are just examples for you to
understand.
Car payment $300 80% $240

Gasoline $150 80% $120
Car Insurance $150 80% $120
Car wash $ 40 80% $ 32
Phone $ 70 100% $ 70
Clothes $100 some
Restaurants $100 50% $ 50
Trips vacations $2400 100% $2400

(business trips)
Internet $ 30 100% $ 30
Computer stuff $ 50 100% $ 50
Total $912
As you can see in the previous example, the total of

$912 dollars is how much you can put on your tax return by
having a home based business. However, if you are an
employee, you are not able to use your personal expenses
on your tax return. Therefore, you will be paying more
taxes.
My dad told me there are 53 different taxes that we
pay in the United States.
That is why if you are an employee, whether you are
18, 25 or 40 and married, having a Home Based Business
will help you pay less taxes.
*If you live in another country taxes work different from the USA, but
still is works the same way if you have a business – it is still the same
principal so find out more about it.
In Mexico the average person that works, pays

around 60% of their money they earn to the government in
taxes. In the USA, Americans pay between 40% and 50% of
the money/income they earn to taxes.
This is a good reason why you should consider starting a

Home-Based business
RETIREMENT SAVINGS ACCOUNTS TO PAY LESS

TAXESS
Whether you have a job or a business, you first need

to start to save and invest through a retirement account.
Retirement accounts help you to pay fewer taxes
from the income you earn. Once you open a retirement
account, whenever you would like, you can save money in

this account.
“Once the money is in these accounts, you do not pay
any taxes on the interest you earn every year. You will pay
taxes when you retire and start to take the money out”.
When you earn interest on a savings account, you
have to pay taxes on the interest at the end of the year.
“The money in a regular account earns interest and
you pay taxes. While the money in a retirement account, you
do not pay taxes to the government until you retire and take
the money out”
1. If you are an employee, you can start a retirement

account called IRA or Roth-IRA. If you have a Job,
they might offer you one called 401K (if your job
offers one, use it).
2. If you are a business, you can start one called SEP-
IRA (self-employment pension).
Every country has some type of retirement account.

You need to use them to pay fewer taxes because it helps
your money tax-free.
THESE ACCOUNTS HELP YOU IN 2 WAYS
1. You pay fewer taxes every year

2. The money grows without paying taxes until you
retire. This allows the money to grow faster and
compound interest will help you.
3. If you are just starting to work, I recommend the
ROTH-IRA. This is the one I have.
* My dad told me that these accounts are so important that in

chapter 8 I will explain how they work and why you must
take advantage of them.
“These accounts can help you to become a millionaire”
CHAPTER 6 – PAY YOUR SELF BY

SAVING
If you do not know why you need to

save, you will not do it
One of the many important lessons that I learned when it

comes to the subject of money is saving. It is very important
to save your money because if you save, you will always
have money when you need it.
As I told you, I first learned to save my money when

I was four years old. My dad bought me a piggy bank for
Christmas that year and told me that I needed to feed the
piggy with money or as he said “its food” in order for it not
to get hungry. My dad would give the loose change out of
his pockets at the end of everyday and that’s how I would fill
up my bank.
Once I had $100 in my piggy bank, my dad took me
to the bank to open up a savings account. He explained to
me that I was going to let my savings account in the bank
make my money grow. It was going to grow slowly but it
would eventually get to $1,000 dollars. If we put more
money along the way, it would get to $1,000 much quicker.
Little did I know that the reason my dad told me

$1,000 dollars was that he was preparing me to become an
investor.
To become an investor and open up an investment
account, you needed a minimum of $1,000 dollars at that
time, but now you only need $100 dollars to get started. I
feel fortunate that he taught me this at a very young age,
although I barely understood what he was teaching me.
As my dad kept on repeating the concepts he was
teaching me, they started to stick in my mind.
The reason that I save and invest my money is so that
I can always have money for emergencies and money when I
retire. I think it is a very important lesson to always know
how and why to save your money. I have been very
surprised when I talk to people only to find out that they do
not have any money saved up; that they do not know how to
save; and that some do not even know what a savings
account is for.
People of all ages should always save their money
because they will feel financially secure all their lives. Some
people save constantly so they can live off the money they
have saved up after they retire.
Some people save to feel financially secure and

others save and invest their money to make it grow. My goal
is to teach more kids my age how to save their money, and
how to do it the right way.
Since I was 4 years old, my dad has taught me
everything I know today about money. Even though my
brother and I did not understand and grasp all the concepts
he showed us, as a child you understand an idea if you see
how it is done. That is how my dad showed my brother and
me the lessons. My brother and I started understanding what
we were doing because my dad would show us how he did
the same thing to his accounts that he was showing us.
I found it interesting that I was learning something so
important that I could use throughout my whole life,
especially that I was learning it outside of school. I thought
that school was where you learn everything about life. The
reason, that kids and teenagers do not save any money, is
because no one teaches them to save and they instead spend
it.
It amuses me that the way you have to learn about
things that you will use in the real world, is through outside
experiences rather than in a classroom. This is why you are
reading this book, to further your knowledge.
IF YOU’RE PARENTS INVESTED $1,000 DOLLARS

If your parents invested only $1,000 dollars when
you were born in an S&P 500 Index Mutual Fund that grows
at 10% for 60 years, how much money do you think you
would have?
The answer: $304,481 dollars
But if they invested $10,000 when you were born,

how much would it be?
Amount Interest 60 years

Invested Rate later

$ 1,000 10% $ 304,481
$10,000 10% $3,044,816
It would be: $3,044,816 in 60 years.
By saving in small amounts over a long period of

time, you will have enough money when you are 60 years
old to retire. Remember the key to saving, is “small
amounts”.
SAVING SMALL AMOUNTS
Save per Save per Interest 20 30

Week Month Years years
$10 $40 10% $30,241 $86,852
$20 $80 10% $60,482 $173,705
$30 $120 10% $90,723 $260,558
If you think that you need to have a lot of money to

save every month look at the chart above and see what can
happen if you save in small amounts.
In the chart below, If you saved $10 per week for 52
weeks per year, you would save $520. If you invested it at
10% per year, how much money would you have in 50 years?
$26,000
$167,083
$756,979
$1,200,000
$1,709,453
The correct answer would be $756,979 dollars. But if

you had invested it at 12%, only 2% more, you would have
$1,709,453 dollars.
WHAT IS INTEREST?
Interest is the rent that banks or people pay you when

you lend them your money. For example, they can pay you
1%, 2%, or 10% per year. In 2012, banks are paying their
customers less than 1% per year for interest and the inflation
rate is 2.5%. This is why your money does not grow. You
need to look at places where you can earn more interest so
your money can grow faster.
Savings without interest

You do not ever want to save your money without
getting interest in return. With interest, you receive
additional money to your savings.
Look at it this way; let’s say you did not have your
money in a savings account and that you kept it in a drawer
in your room or in your piggy bank. By having it there, it is
not growing in any way, because you are not receiving
interest.
Savings with interest

Now if you save, make sure you save with interest.
There are two types of interest, “simple and compound
interest”. The following places are where you should save or
invest your money.
1. Banks
2. Brokerage firms
SIMPLE INTEREST
When you save and earn simple interest, they only

pay you interest on the money you are saving (your capital)
and not on the interest you earn. Look at the following
example (Chart instead of example):
Years Original Principal Interest Interest

Amount + Interest On original
(principal) Principal
1 $100 10% $10

2 $100 + $10 $110
$100 10% $10
3 $110 + $10 $120
$100 10% $10
4 $120 + $10 $130
$100 10% $10
10 $190 + $10 $200
1. In year one, you earned $10 interest. You now

have $110 dollars.
2. In year two, you earned interest only on the
original $100 dollars and not on the $10 dollars
interest. Again, you made $10 interest. You now
have $120 dollars
3. In year three, again you earned interest only on
the original $100 dollars and not on the $10
interest. Again you made $10 interest
4. In year three, you have $130 dollars.
In 10 years you made $100 dollars in interest. $100

capital (your money) + $100 interest = $200, see the last line
on the chart.
 Notice that interest you earned is the same every

year, $10 dollars.
 In the next example, notice the difference with
compound interest.
THE 8th WONDER OF THE WORLD

Albert Einstein is known to have described
Compound Interest as the 8th Wonder of the World. In the
world of investing, it is very important because it makes your
money grow faster, as you will see.
Understand this concept because it will help the

money you save to grow faster than inflation and it doubles
your money little by little.
Compound interest – Notice how you earn interest on your

original money and the interest.
Interest
Rate on
Years Principal Principal Interest
& Interest
1 $100 10% $10

Principal Interest
+ Interest grows
2 $110 10% $11
3 $121 10% $12.10
4 $133.10 10% $13.31
5 $146.41 10% $14.64
6 $161.05 10% $16.10
7 $177.15 10% $17.71
8 $194.87 10% $19.48
Money Doubles
In 7.2 yrs
9 $214.35 10% $21.43
10 $235.79 10% $23.57
11 $259.37
1. In year one: you earned 10% interest. This is $10

dollars. You now have $110 dollars.
2. In year two: you earned $11 interest on the
original $100 plus the $10 or 10% interest on
$110 dollars.
3. In year three: you earned $12.10 interest on the original
$100 plus 10% interest on $121 dollars.
4. In year four: you earned $13.31 interest on the original
$100 and 10% interest on $133.10.
As you can see with Compound Interest, you earn

interest on your original money plus the interest. With
10% interest, your money doubles every 7.2 years (Rule of
72) instead of 10 years as with Simple Interest.
*At the end of 10 years, you would have $259.37 with

compound interest and $200 simple interest.
With compound interest, your money grows faster.

This is because you earn interest on the Principal and the
Interest. This works in your benefit because you earn more
interest and the interest grows more than “Simple Interest.”
ANOTHER EXAMPLE
Notice the difference of total interest you earn
between Simple interest and Compound interest
Y Simple Future Compound Future

R Interest Value Interest Value
1 $100 x 10% =$110 $100 x 10%=$10.00 $110.00
2 $100 x 10% =$120 $110 x 10%=$11.00 $121.00
3 $100 x 10% =$130 $121 x 10%=$121.10 $133.10
Total Interest Total Interest
=$30.00 =$33.10
SAVING WITH NO INTEREST
Savings
$1.00 Per day Amount $ Interest
Daily $ 1.00
Monthly $ 30.00
Per Year $360.00 0
SAVING WITH COMPOUND INTEREST

This example shows you why investing with
compound interest is important.
Savings Compound
$1.00 Per day Amount $ Interest
W Interest 10% yr
Daily $ 1.00
Monthly $ 30.00
Per Year $360.00 +$36 = $396.00
IMPORTANT TO KNOW:
1. On the Simple Interest chart on page 74, your money

doubles in 10 years.
2. On the Compound Interest chart on page 75, your
money doubles in 7.2 years. It doubles faster.
It is very important to pay attention and learn how to

invest. If you know how to invest your money, you will be
financially secure for the rest of your life. I am very
fortunate that my dad showed me how to invest because now
(with the investments I have) I am on my way to being rich.
INTEREST RATES (%) MATTER

To make your money grow, you need to get higher
interest rates. It is very important that you look around for
the best interest to save or invest your money. With the
internet, it is very easy to find the best interest rates.
Four things to consider when you select interest rates:
1. That the interest rate is higher that inflation

2. That you will pay taxes on the interest
3. That the higher the interest the better
4. That you are getting compound interest
WHY HIGHER INTEREST RATES MATTER

See how $100 dollars invested at different interest

rates (%) grow over 20 years.
Interest Years Amount it

Rate Grows to
2% 20 $29,739
4% 20 $37,163
5% 20 $41,663
8% 20 $59,307
10% 20 $75,603
Notice the difference between 4% and 5%, It is only

one percent more but over a period of years it makes a
difference. By investing your money for 20 years at 4%
interest, you have a total of $37,163 dollars.
By investing your money at 5% interest, you have a
total of $41,663 dollars. You invested your money for the
same amount of time, but just by having your interest rate be
1% more, you could have made an extra $4,500 dollars.
This is why having higher interest matters.
Always look for better interest rates

to invest your money
My father would ask me, “What is the difference

between saving and investing?” I would answer that saving
is w hen you have your money in the bank and investing is
when you have your money in an investment account. By
investing your money, you receive more interest than saving.
THE RULE OF 72
Now that you understand the Rule of 72 and how

money doubles, you need to apply “the 8th wonder of the
world” (Compound Interest) to help you grow your money.
WHAT IF YOUR MONEY DOUBLES EVERY 5

YEARS WITHOUT INTEREST?
Year Amount
Doubles
1 $ 10,000
5 $ 20,000
10 $ 40,000
15 $160,000
20 $320,000
In the chart above, where does your money double

more: the first 5 years or the last 5 years?
If you invest over a longer period, you will have a lot
of money. Think about it like this, if your parents invested
$1,000 at 10% for 60 years, you can have $3,338,298
dollars. By investing your money little by little, you can
have a big reward at the end.
The chart above shows you how your money will
double with patience.
EXAMPLE OF SAVING EARLY

Let’s say that my brother Kostas started to save his
money from 26 until he was 50 years old, but I started to
save the same amount of money at 18, until I was 25 years
old. After my first 7 years, I left my money in my savings
account and just let it accumulate interest without putting in
any additional money.
KOSTAS TRIANA
Monthly Monthly
Savings $ 166 Savings $ 166
Yearly Yearly
savings $2,000 Savings $2,000
Years Saved 25 years Years saved 7 years
Interest Interest
Rate 15% Rate 15%
The years From The years From
That he saves 26 to 50 yr That she saves 18 to 25 yr
WHO WILL HAVE MORE MONEY?
KOSTAS TRIANA
18 years – – 18 years $2,000
19 years – – 19 years $2,000
20 years – – 20 $2,000
21 years – – 21 $2,000
22 years – – 22 $2,000
23 – – 23 $2,000
24 – – 24 $2,000
25 – – 25 $2,000 $24,847
26 years $2,000 26 years – $29,011
29 years $2,000 $11,695 29 years – $45,356
32 years $2,000 $24,984 32 years – $70,934
38 years $2,000 $80,381 38 years – $173,499
44 years $2,000 $215,878 44 years – $424,366
50 years $2,000 $547,293 50 years – $1,037,967
The example above shows that I only invested my

money from 18 to 25 years old. Kostas started at 26 years
old and invested until he was 50.
The lesson here is that just because you invest for a
longer period of time than someone else, does not mean you
will have more money than them in the future. This teaches
you the concept…
The earlier the better
The reason my money keeps on growing is because

of compound interest.
WHAT IS INFLATION?
Inflation is the Money Monster
Have you ever wondered why things get more

expensive over time? I always hear my mom and dad talk
about how when they were my age things were so much

cheaper. It is crazy to think about how much the price of
something has risen over the years, especially in the recent
ones.
Gas for example has become out of control. In 2009,
the average price of gas was $1.86. Now three years later in
2012, the average price of gas is $3.86. However, my dad
tells me in 1972 it was .25 cents per gallon.
Just remember that inflation makes things more
expensive over time. You need to protect yourself by
investing in things that will go up in value.
Why is there inflation?

There is inflation because the Federal Reserve
System (known as the FED) prints money. They print
money because the government needs more money to do
more projects and more money can be available. As they
print more money, the prices of things go up
HOW DO WE KNOW THERE IS INFLATION
INFLATION: Is measured by the “Consumer Price Index

(CPI)”. The government finds out how much things cost last
year and how much they cost now.
Basket of things we buy (good & services we use):
YEAR 1 YEAR 2
Housing Housing
Fuel Fuel
Services Services
Transportatio Transportatio
n n
Inflation
2%
Cost/Yr. 1: $100 Cost/Yr. 2: $102
Two important things to know about inflation:
1. It makes money worth less

2. It makes things more expensive (food, cars)
* $1.00 saved with no interest and 5% inflation

= $0.95 cents next year. Your dollar is worth less and you
need $1.05 next year to buy the same thing.
The Money Monster makes things more expensive every

year
Invest to make things worth more

As you can see, because of Inflation, things will cost
more in the future. That is why when you save money, you
do not just want to save your money, but invest in things that
will go up in value faster than inflation.
For example, if inflation in 2011 was around 2.2%
for the year and interest on a savings account was .01%, this
means that the money you save is loosing value and you
won’t be able to buy things in the future. In 2011, I invested
on a stock that grew in value 13%. Which of the two is
better?
The following are some investment ideas that will
protect your money or keep pace with inflation:
1. Real Estate
2. Gold or Gold Coins
3. Stocks, Stock Mutual Funds
4. Inflation Protection securities mutual funds
I hope that in this chapter you learned and understand

why it is important that you start to save as soon as you can.
The earlier you start to save your money the better it will be.
Once you save and invest your money, Compound Interest

will come into play. Because of Compound Interest, your
money will increase over time.
CHAPTER 7 – INVEST IN YOUR FIRST

HOUSE
Have you thought about buying your first

home?
My dad has always talked about how when he was 21 years

old he bought his first house. It really impressed me because
I know that at 21 years old, many people have not even
started to save money. Having my dad tell me his story
about how he purchased his own home at such a young age
inspired me to do the same thing. I think it is a very smart
idea to purchase a piece of property because it is something
that will always go up in value.

I didn’t know I could buy a house

I always hear people say that they want to buy a
house, but I never hear people explain how they are going to
buy the house. This is an important lesson because you
always need to have a plan and know how you are going to
do something. My dad asked me how old I wanted to be
when I wanted to buy my first house. He was already
preparing me from a young age for something I wanted to
have in the future. One of the reasons I chose the age 21,
was because that is the age of adulthood.

Have you thought when you will buy your first house?
WHY INVEST IN ONE

Many people want to know why they should invest in

a piece of property. One reason is to have ownership. When
you own a house, it is yours and no one else’s. That makes
you feel good.
By having your own house, you have a better
standard of living than having an apartment. When you have
your own house, because of Inflation, the value goes up
every year. Even while you are paying off your monthly
expenses, your net worth is increasing due to inflation
because the house is growing in value. By having a house, it
is a great way to help you pay fewer taxes; the interest can
become deductable.

HOW DO YOU BUY A HOUSE
To be able to buy a house, a bank will want to see if

you are a responsible person with credit, so they will look at
the following things:
 Good credit
 Responsible FICO score
 Loan 5% to 20% percent down
 They want to know if you have assets
Price $300,000
Down
Payment 10% -$ 30,000
Bank Loan $260,000

If the bank lends you $260,000 at 5% for 30 years,
your monthly payment would be $1,395.74 dollars.

The Bank Needs from you:
1. Wants to know you can pay
2. Needs credit report
3. What your income is
4. What things you own (assets –things of value).
Interest Rates
When it comes to interest rates, you always want to
find the lowest one. As they say, the lower the better. Right
now in 2012, as I am writing this, the interest rates for a
mortgage loan are the following:
For a 30 Year loan, the interest rate is 3.85%.

For a 15 Year loan, the interest rate is 3.07%.

Buying a house is like buying a car on credit. You
first start by putting a down payment and then you make
monthly payments for 36 months, 48 months, or 60 months,
which ever you choose.
When you are buying the house, you put up a down
payment and then they tell you what the monthly payments
will be. This is how you purchase a house. You will not be
able to buy the house if you do not make enough money to
make the monthly payments (mortgage payment).
My dad told me the following story of how he bought
his first house. When he was in college, he put a down
payment of $5,000 dollars on a house where the price was
$45,000. It was a 4-bedroom house and he got three other
roommates that helped him pay the monthly mortgage
payments.
You buy a house with a down payment

and the monthly payments

How to pay the mortgage faster:
When you have a mortgage payment, the majority of
the payment first goes to the interest and the rest of it goes to
pay the Principal Payment. For example, if you have a
$1,000 dollar mortgage payment, $900 dollars will go to the

Interest and $100 dollars will go to the Principal.
The second month the interest is $898 dollars and the
principal is $102 dollars and so on.
If you make additional payments to the principal, you will
save on the interest payment. Look at the following
example.

Payment Monthly Interest Principal
# Payment Payment Payment
#1 $1000 $900 $100
#2 $1000 $898 $102

When you make the first payment of $1,000 and you
make an additional payment of $102 to the principal of the
second payment, you will save $898 interest on that second
payment. This is very important to understand so make sure
you…

Make additional payments and save interest
on every loan you have

I hope that in this chapter you learned why it is so
important to invest in a piece of property such as buying
your first home. Not only will you not have to pay someone
else’s mortgage where you are living but it will help you to
have the financial freedom we all look for. In years to come,
you will always have a place to call your own.

Things to know:
1. You want to have good credit when you are about to
purchase your house.
2. You want to make sure that the interest rate is at the
lowest it can be.
3. Make sure you have a good FICO score. It is the

number that tells a lender how responsible you are
when you borrow money.
I have always heard my dad at trainings talk about

how he has taught people how to buy their first home. He
would tell them that every Sunday they should go and look at
three houses in the neighborhood that they would like to live
in and ask the realtor four things:
1. Ask for the price of the house

2. Ask how much the interest rate is
3. Ask how much the monthly payment would
be
4. Ask how much the down payment would be

In this chapter, you learned how to purchase a home,
but if you do not save money and invest, it will be hard for
you to have the money to purchase a home. On the next
chapter, you will learn about how to open your first
investment account.

CHAPTER 8 – OPENING AN ACCOUNT
“If you not open one, nothing happens”
Where Do I Invest?
I opened up my first bank account when I was 4 years
old with the help of my dad. Then he told me that I was
going to keep my money in the bank until I had $1,000
dollars because that was the minimum amount of money you
needed to go from a saver to an investor.
When I started my first investment account, I opened
it at Dodge and Cox a mutual fund company. My dad found
that you could get better interest and returns with your
money. As I started to invest my money rather than save it, I
could see the difference between investing rather than just
saving it at the bank.
When you invest your money – something that not a

lot of young people know how to do – your money gives you
(has) more choices. You can invest in Mutual Funds, ETF’S,
Gold, REIT’s and bonds. The banks do not give you these
options.
As I got older, he opened another account for me in
Scottrade. Scottrade is a brokerage company where you can
invest your money and buy Stocks and bonds. Through this
account, my dad started to show me how to invest in stocks.

Brokerage Companies
These companies make it possible for you to invest
your money in Cash, Bonds, Stocks, REIT’s and other
investment vehicles. You can make these investments in the
form of CD’s, Money Market Funds, Mutual Funds, and
Exchange Traded Funds (ETF’s).
After I opened my first bank account and was able to
save $1,000 dollars, my dad opened up a “custodial account”
– an account for minors – in my name at Scottrade and that is
how I became an investor. This is where I learned to invest
which was a better chance for my money to grow than if I
had kept it in the bank. I feel that I am doing the same thing
as a professional investor.

Names of Brokerage Companies:
1. Scottrade
2. Fidelity
3. Schwab
4. Vanguard
5. Dodge & Cox
To be able to open up an account, you will need a

“minimum amount” for each company. With Scottrade it is
$500, with Fidelity it is $2,500, with Schwab you can open it
with as little as $100 dollars. With Vanguard it is $3,000
and Dodge & Cox you need $2,500 dollars. Make sure you
know the amount it takes to open and account.
There is no reason why you should not be able to
start investing while you are reading this book, because as
you can see with Schwab, you can start with as little as $100
dollars.

STEPS TO OPEN ACCOUNT
1. You can open an account in person or online.
2. The first time you should open an account in person
if possible, because when you do it in person if you
do not understand something on the application, you
have someone who will be able to make you feel
comfortable.
3. Decide what type of account to open:
A Custodial Account is an account for teenagers

that are under 18 years old. You have to have a
parent help you to open up the account because
their name will be on the account since you are a
minor.
a. A Regular Account is an account you open

once you are 18 years or older.
There are two basic types of retirement accounts,

an IRA or a ROTH-IRA.
b. An IRA Account is an account that you

invest your money in and you don’t pay taxes
until retire.
c. A ROTH-IRA Account: is an account that
you invest your money, but you first have
to pay taxes on it. Because you pay taxes on
the money before you invest it, when you take
the money out of the account, you do not pay

taxes. I recommend this account and I will
talk more about it later in this chapter.
d. There are other accounts that you can open,
like a Trust Account, Business Account, and
others.
4. If you work, remember to always save first with a

retirement account rather than a regular account.

RETIREMENT ACCOUNTS
The good thing about retirement accounts is that you

do not pay the taxes at the end of the year. In a regular
account, you pay taxes on the interest and dividends you
earned or the profit when you sell a stock. In these accounts,
the money stays in the account and continues to grow and
you pay the taxes on the interest or dividends, when you
retire and take the money out.
You always will pay taxes with a regular account.
With a retirement account, you can take the money out when
you are 59 ½ years old.

Things to know about Retirement Accounts:
1. When you invest through a Retirement Account, you
do not pay taxes to the government until you retire.
The money grows faster than regular accounts. With
regular accounts, you pay taxes on the interest at the
end of the year through your tax return.
2. If you take the money out of the account, there is a
10% penalty charge and you pay taxes. Never, ever
take money out of these accounts.
3. When you retire, you can take the money out after 59
½ years old if you choose but after 70 years old, you
will be by the government to take part of it out. (or
you can take it out) I took this part out – after “the
money out” * see how it reads better
Three types of Retirement Accounts

1. An IRA is an Individual Retirement Account that is a
form of a retirement plan that provides tax
advantages for retirement savings.
2. A ROTH-IRA is a special type of retirement plan
where you are not taxed when you take the money
out after retirement.
3. A SEP-IRA is an account for business owners to
provide retirement benefits for the business owners
and their employees.
RULES OF RETIREMENT ACCOUNTS

Amount you
Can put in Traditional-IRA Roth- IRA

$5000 (if under Tax Deferred Tax Deferred
50 years) Don’t Pay taxes Don’t pay taxes
$6000 (if over On earnings On earnings
50 years) When growing When growing
inside inside
You can withdraw You pay ordinary You don’t pay
After 59 ½ Taxes after Taxes after
After 70, you must Withdrawal Withdrawal
Take part out
You don’t pay
Early Withdrawal Pay taxes & 10% Taxes up to
Penalty $5,000 but you
Pay 10% Penalty
Over $5,000 if
You take out $$

EXAMPLE
Traditional IRA Roth-IRA

Money you put in Money you pay in
Don’t pay taxes You pay taxes

Initial Money Money
Amount grows tax grows tax
$5,000 or free free
$6,000
At 59½ yrs you At 59½ yrs you
Can take out & can take out &
Pay taxes don’t pay taxes
I hope that in this chapter you learned about why it is

important to prepare for retirement by opening an account
and investing in it. By having a retirement account, you will
not have to worry about money for when you actually plan to
stop working.
The most important thing about using these accounts
is that the earlier you start, the more money you will have at
60 years old. For example, if you are 20 years old when you
start to invest, you will have 40 years to invest your money,
but if you wait until you are 30 years old when you start, you
will only have 30 years for your money to grow.

The earlier the better

In the following chapter, you will learn about how
professional investors know if they are doing well with their
investments.

CHAPTER 9 – KNOW HOW YOU ARE

DOING
How do I know I am Doing Well When I Invest?

When you invest, you want to know if your investments are

doing well, you need to compare it to something. When you
play a sport, you want to know how you are doing against
other teams. Investing is the same as a sport; you want to
know how you are doing.
When you buy something at a certain price, do you
always feel better when you see the same thing with a higher
price at a different store? When you buy a house, will you
feel good when you sell it at a higher price? When you
compete in sports, like a triathlon, do you always feel great
when you beat your time? Investing is the same…
When you invest your money you need a reference point to

see if you are doing well
I always heard my dad talk about the S&P 500

although and I did not know what it really was. The S&P 500
represents the 500 biggest companies in the United States.
S&P stands for a company called Standard and Poor’s that
analyses companies to see how they are doing. They have an
index called the S&P 500 that represents 500 companies, but
there are other indexes like the Dow Jones Industrial
Average that is represented by 30 companies and it is also
known as the DOW. Another one is NASDAQ that
represents 100 technology companies. When investing, how
do you know that you are doing well?
You need to compare your results with something
else to know if you’re doing well, that you are on track; you
need a reference point.
In investing it is called a “Benchmark” or an “Index”.
If you are an athlete who runs, when you compete,

you compare your time to a previous one and it lets you
know if you are running well.
If you are on a team, you compare yourself to other

teams, usually the one in first place.
If you are a baseball player, you know the difference
between .280 and a .333 batting average, the higher the
number the better. When you compete, you compare
yourself to others; you need to have a reference point.
These are all different examples of Benchmarks,
Index’s or as I call them, “reference points.”
In investing, it is the same; you need to compare your
percent of returns to something. This is called the
“Benchmark” or “Index”. Let me explain.
THE S&P 500 INDEX
The company Standard and Poor’s analyzes how

bonds, stocks, companies and countries are performing
financially. They came up with an index called the S&P 500
index.
This index tells investors how the 500 biggest
companies in the United States are doing. Some companies
are Exxon/Mobil, Apple, IBM, Chevron and Microsoft.
There are other indexes like the Dow Jones Industrial
Average or “the DOW”, which represents 30 companies.
Some companies are Coca-Cola, McDonald’s, Microsoft,
Walt-Mart and Disney.
So, in the world of Investing, investors compare how
they are doing to the S&P 500 and other indexes. I will be
referring to the S&P 500 index often because it is the one
everyone uses to compare how they are doing when
investing.
POPULAR INDEXES
 Lehman Brothers U.S. Aggregate Index: Bonds

mutual funds and Bond ETF’s compare
themselves to this index.
 S&P 500: Stock mutual funds and stock ETF’s use
this index.
 Dow Jones Industrial Average (DOW): represents
30 large industrial companies.
 Russell 2000 index: represents 2000 small cap
stocks.
 REIT Spliced Index: Real State Investment Trust
(REIT) - Real Estate use this index.
 Gold Index: The London Gold PM Fix Benchmark
is used for gold.
BOND MARKET RETURNS

To see if you want to invest in a government bond,
bond mutual fund or if you just want to know how your bond
investment is doing – you want to compare it to the
benchmark by years, like the chart below:
Mutual Fund 1 Year 3 Year 5 Year 10 Year
Vanguard Total
Bond Market 8.54% 7.31% 6.69% 5.60%
Benchmark 8.75% 7.45% 6.72% 5.80%
As you can see in the charts above and below, an

index fund closely follows the Benchmark but is never the
same.
S&P 500 INDEX MARKET RETURNS

Also with the S&P 500 you can see that it closely
follows the Benchmark. When investing, everyone usually
compares his or her returns to the S&P 500.
Vanguard
S&P 500 Index 4.59% 18.05% .60% 4.11%
Benchmark 4.75% 18.16% .68% 4.22%
Now you have a better idea of why it is so important

to know that when you choose an investment it’s important
to know how the investment is doing so you can decide if
you want to invest your money.
I hope that what you just read in Chapter 9 was able
to teach you the reasons why it is so important to know and
keep track of how you are doing. If you do not have a
reference point when you invest your money, you will not
know how you are doing financially and how to make your
money grow to one million dollars.
In Chapter 10, you are going to learn about Mutual
Funds and how they work.
CHAPTER 10 – WHAT ARE MUTUAL

FUNDS?

MUTUAL FUNDS

Mutual Funds are companies that pool together and
invest the money of small investors. The Mutual Fund
companies invest their money in Bonds or Stocks or
sometimes a combination of both. To invest in Mutual
Funds you start with a small down payment, which can be
$100, $500, or $1,000, and in others – more than $5,000
dollars.
Afterwards, you can invest small amounts of money
every month. It can be $100 or more but you decide how
much to invest. If you do not want to invest, you do not
have to. This is just like a savings account.
You can take your money out anytime you need it
and you will have it within 48 hours. By investing this way
to make your money grow, you will soon figure out that it is
better than making your money grow in the bank. This is
what I have done to make my money grow. I recommend
you do the same thing.

Beware: The money in your account will go up and down,

but over a long period of time it will still grow. If you
understand this, you will be ok.

When I started investing in a Mutual Fund, I never
really looked at my account a lot. At first, I did not pay
attention to my account because I did not truly understand
what Mutual Funds were since I learned about them at such a
young age.
Later on I did not pay attention to my account
because I knew I did not want to drive myself crazy
wondering what was going to happen to my money.
By doing this, I was never worried about what my
account was doing and I never stressed about it. My dad told
me that Warren Buffet once said, The stock market will
eventually go up.

EXCHANGE TRADED FUNDS (ETF’s)
Exchange Traded Funds is a cousin to Mutual Funds.
This is because you can invest in both the same way. There
is an S&P 500 for both Mutual Funds and ETF’s.
ETF’s are like stocks because you buy and sell them
like stocks. You know the price you paid for them
immediately. On the other hand, with Mutual Funds you
will know the price after the market closes at 4pm New York
time.
The best thing about ETF’s is that the yearly fee is
less than with Mutual Funds. Also with ETF’s, you have
better choices to invest your money. In a later chapter, I will
show you how to purchase them.
HOW DO I START TO INVEST IN BOTH FUNDS?
See the following example:

Bond
Funds
Your Money Mutual

Funds
Initial Stock
Amount Funds
$ 100
$ 500
$1,000
In the previous example, you start with a small

amount: I call it a down payment. You need the initial
amount to get started after you open up the account. Once
the money is in the account, you can select which mutual
fund you are going to invest your money in.
You can select to invest in a bond fund or stock fund.
When you are young, stock mutual funds are a better choice.
You then decide to invest small amounts of money
every month. That is how simple it is to invest in mutual
funds. I personally sometimes put at least $100 dollars,
sometimes more, but it is always at least $100. Remember,
investing in mutual funds or ETF’s doesn’t require big
amounts of money. Anyone with small amounts of money
can do it and this is great for kids and us teenagers to start
getting rich!
See the following table:

Stocks always go up and down. That is how the
game works and that is why people get so excited about
playing it. You want to avoid getting scared if the price goes
down because over a long period of time your stock will
eventually go up.
Investment Price # of shares

Bought
Start $1000 $10.00 100
Price is down $ 900 $ 9.00 100
Price is up $ 950 $ 9.50 100
Start $1000 $10.00 100
End of year $1200 $12.00 100
1. In this chart, you invested $1,000 at $10 dollars each

a share and you bought 100 shares.
2. A month later the price of the shares went down to
$9. The value of you stocks went down to $900. If
you do not sell your shares, you do not loose or win.
The value of the account is just down for that month.
3. The following month the price went up to $9.50, so
the value of your shares went up to $950. If you do
not sell your shares, you have not lost any money.
Remember, stocks go up and down in value.
4. The following month the price went up to $10, back
to the original price and it recuperated the original
amount you invested.
5. At the end of the year, the price went up to $12 and
the value of your money went up to $1,200 dollars.
6. The “rate of return” on your money was 20% for
that year. That is, if you did not sell your shares
when they went down in value.
7. Because stocks go up and down, you need to invest
over a long time, think 5, 10, 20 or 30 years. If you
invest every month, you will be very happy just like
me.
RATE OF RETURN
The rate of return is the percentage that your

investments are growing every 3 months, every 6 months, or
every year. It is very useful to compare how you are doing

against an index because you can see if you’re going in the
right direction.
If your rate of return is not doing well you can choose
to change your investment.
In 2009, the S&P 500 grew (rate of return) by
21.30%. Imagine your money growing with this interest rate
in the bank. How much would you have had?
Look what the returns of the S&P 500 were for the
following years.
Stock Rate of
Year Market return
2009 S&P 500 21.30%
2010 S&P 500 17.40%
2011 S&P 500 1.46%
Look at the following chart to see how much $1,000

dollars would have grown to in each year. (See the chart)
Year Beginning Total

Amount
2009
S&P 500 $1,000 $1,213.00
2010
S&P 500 $1,000 $1,174.00
2011
S&P 500 $1,000 $1,014.60
How much do you think you would have had in a

savings account in a bank?
As I write this in 2012, the interest rates at banks are .
10% to 1.01% per year. From January 1 to November 29,
2012 the S&P 500 had returned 14.94%.
If you would have invested $1,000 in an S&P 500
Index fund at the beginning of 2009 through the end of 2011;
you would have a rate of return of 37.54%. This means your
money would have grown to $2,601.88 dollars for a total

return of 40.16% (erase the red) in 3 years. (Greco, I am not seeing
this from the chart above) ask me about this
THE COSTS OF MUTUAL FUNDS
When you invest money, there are costs or fees that

you should be aware of. If you hire a money manager to
invest your money for you, they will charge you at least 1%
per year so keep this in mind:
You want to pay less than 1% in fees
1. Investment Loads – Are commissions they charge

you when you invest or sell. Don’t invest in these
funds. There are funds that don’t charge loads.
Invest in these.
2. Yearly fee – A fee or commission that all funds
charge to invest your money. You want to pay less
than 1.0%
3. The Vanguard S&P 500 Index Fund charges a .06%
yearly fee.
4. That is why I recommend Index funds or ETF’s to
make your money grow.
ETF’s COST VS. MUTUAL FUNDS
1. ETF’s – There are no loads but you pay a

commission to buy them just like stocks. I will show
you how to buy them without paying a commission.
2. Yearly Fees are less than Mutual Funds. For
example, with one company, the Mutual Fund is
0.09%, but their ETF fees are 0.08%.
3. You can start investing with as little as $100 dollars
in a company called Schwab. The minimum with
some Mutual Fund companies is $1,000 dollars.
4. The Vanguard S&P 500 mutual fund charges .17% in

yearly fees vs. 1.4% for a typical actively manage
stock mutual fund.
5. The Schwab Small Cap ETF charges .10% in yearly
fees vs. .47% for a typical actively manage mutual
fund. Look at how much
more you would have with paying fewer fees. (See chart
below)
GROWTH OF $10,000 AFTER 20 YEARS

7% ANNUAL RETURNS
Mutual Fund with 1.4% yearly fee = $29,700
Mutual Fund with 0.17% yearly fee = $37,500
Fees do matter when you invest
I started investing in Mutual Funds when I was 5

years old but now I am only investing in ETF’s because it is
easier and better for me since I do my investing online. In
addition, the fees are less – which in the long run allows me
to keep more money in my pocket.
In the next chapter, I will show you how you can
invest your money by simply lending it to the government
and public companies.

CHAPTER 11 – INVESTING BY
LENDING
Where do I get better interest?
There are two ways to invest your money: Cash or Bonds.
BONDS: (bold and capitals)

You can invest by lending in:
 Cash
 Short term bonds
 Long term bonds
 Inflation bonds
 Mortgage bonds
CASH ACCOUNTS
Cash Accounts are Short Term Obligations that
guarantee you an interest rate; and they are liquid. Liquid
means that you can get your money immediately and do not
have to wait. You lend your money to banks and they pay
you interest. This is safer then lending it to a relative or a
friend because they can spend the money and not pay you
back.
The government does their job through the FDIC or
Federal Deposit Insurance Corporation by making sure your
money is not spent; and they insure your money, this is very
good.

TYPE OF CASH ACCOUNTS
1. Savings Accounts – A Savings Account is an
account where banks offer you an interest. Different
banks have different amounts of interest.
2. Checking Accounts – Some Checking Accounts pay
you interest when you have the money in; and you
have the ability to write checks.
3. Money Market Accounts – Money Market
Accounts are accounts that pay you interest and it is
usually a higher interest than a savings account.
Always use these instead of savings accounts.
4. Money Market Mutual Funds – Money Market
Mutual Funds are like Money Market Accounts but
you buy them at Mutual Fund Companies and these
are better because they offer better interest rates.
5. Certificates of Deposit (CD’s) – Certificates of
Deposit or CD’s is like a savings account. You have
to leave your money for a certain amount of time like
(1), (3), and (6) months or up to 5 years. The
Government (FDIC) guarantees them.
BONDS
Bonds are money that you lend to the Federal
Government, Local Municipalities, Utility Companies, and
Public Corporations. They borrow money from you and
they agree to pay a fixed amount of interest called Coupons.
They pay you interest every 6 months and you can invest
your money for different periods of time. The price of the
bond can go up or it can go down.
DIFFERENT TYPES OF BONDS

1. Short Term Bonds – Money that you lend to the
government for 2 to 3 years and the rate of return
(percentage) is lower than other bonds, but they are
safer.
2. Long Term Bonds – Money that you lend to the
government for 10 to 30 years and the rate of return
is higher than Short Term Bonds, but they carry more
risk.
3. Inflation Protection Bonds (TIPS) – Money that
you lend to the government. They give you an
interest plus the “inflation rate” every 6 months.
These are very good because they protect you from
inflation.
4. Mortgage Bonds – Known as GNMA’s. They invest
your money in mortgages. You get a higher interest
rate and the government backs them.
5. High-Yield Bonds – Money you lend to public
companies, the interest rate is higher but they are
riskier than other bonds.
There are others, but these are the most popular bonds.
THREE WAYS TO INVEST IN BONDS
1. Direct with the government

2. Mutual funds:
3. Bond Exchange-Traded Funds (ETF’s):
When you are looking to invest in Bonds you always

want to make sure you know the right way to do it. You can
always have a professional person invest for you, or you can
do it directly with the government, but the easier way to
invest in Bonds if you don’t have experience is through a

Bond Index Mutual Fund or Bond ETF.
It is very important to make sure you are paying a
“Low Yearly Fee” because the returns (interest) they pay is
low. You do not want to ever pay high yearly Fee’s, over .
50%, this is too high.
A good fund to start with is the Vanguard Total
Bond Market Index Fund or an ETF; they charge a .10%
yearly fee. The average Mutual Fund charges .91% yearly.
To pay .91% is very high to pay to invest in bonds. With
Bond Funds in 2012, you could make anywhere from 2.90%
to 7.50%.
WHICH ONE DO I CHOOSE?

The easiest way to invest in bonds is to select the
Total Bond Market Index Mutual Fund or Total Bond
Market ETF because of the following reasons:
1. Low yearly fees
2. You can invest in various types of bonds
3. You don’t have to guess which bonds to invest
4. Is easy to pick one fund
5. The Vanguard Total Market Bond Fund returned in
one year, 8.54%
CHART
As you can see in the chart below, as time goes on,

the Bond Market never catches up with the Benchmark. This
is the way it always is but look at the returns over 10 years.
Vanguard Total
Bond Market 8.54% 7.31% 6.69% 5.60%
Benchmark 8.75% 7.45% 6.72% 5.80%

If you are under 30 years old, you should only invest

in stocks.
Stock Funds or ETF’s give you better returns;
meaning your money grows faster because you have more
years to invest your money. I only invest in stocks right
now, because I feel like that is where my money can grow
the fastest.
In the next chapter, you will learn how to invest by
owning things.

CHAPTER 12 – INVESTING BY
OWNING
“Becoming a partner in a business”

Ever since I was little my dad has always been teaching my

brother and me lessons about money management. One of
the things he taught us was how to invest in stocks. He
taught us how to buy and sell them and how in the future we
could choose how to be a part (partners) of our favorite
companies.

Stocks are how public corporations such as McDonald’s,
Disney, Microsoft and others allow you to become partners
of their companies. To become partners you start by buying
the stock through a Brokerage Account. Once you have
found the stocks you want to invest in, you pay a price for
each share. If your shares go up and you “sell” them, you
make a profit. If your shares go down and you “sell” them,
you loose your money.

When you invest in a stock, you make or
loose money only when you sell
With my experience in buying and selling Stocks, I

have realized that it is not a game but it is a business,
because you become a partner with the company of the stock
you bought.
You never know if a stock price will go up or down;
you just have to know if the company is profitable and if it
they are growing their sales. If the company you invest in is
profitable, you will always have a higher price than the price
you paid for.

Remember – Do not be afraid to invest in stocks!

ONE OF MY FIRST EXPERIENCES WITH STOCKS
As you will recall, the first time I started learning

about stocks was through my dad when I was about 9 or 10
years old. This was around the time that he started focusing
on investing with Mutual Funds and teaching my brother and

me more about it.
My brother and I would always watch my dad look at
stocks on the computer. We would notice him looking at the
charts on www.bigcharts.com to see how the stocks that he
had bought were doing. Some days they would be up and
some days they would be down. Looking at the charts is like
looking at a picture of the company; you can see how the
price is doing and knowing this gives you more confidence.
My dad explained to us how the stock market worked
by showing us examples of companies that we were already
familiar with such as Apple, Starbucks, McDonalds, and
Herbalife. He was showing us how and why to become
partners with our favorite companies.
Another way my dad taught me about stocks (other
than online) was through a newspaper called Investors
Business Daily. I remember he would make me run into
Barnes and Noble to buy this newspaper.
I did not know what it was, but I knew that it was
important to my dad because after I bought it for him I
would see him highlighting certain parts of the newspaper as
he flipped through the pages. My dad has told me that when
he is reading something that he feels is important, he always
highlights it so he can go back and reread it.
I learned that in the second section of Investors
Business Daily at the top of the paper, it shows you charts
for the top 50 companies. When I asked my dad to teach me
how to read the charts, he showed me through companies I
knew like Tempur-Pedic because he knew my brother loved
their mattresses.

I BOUGHT A STOCK in 2011
In June 2011, I bought the stock of a company called

Herbalife International at $52.72. I paid $6,326.40 dollars
for 120 shares plus $8.95 commission to buy it through

Schwab Brokerage.
Now in February 2012, the price is $59.38 and the
total amount is $7,120.56 dollars, which gave me a profit of
$794.16 dollars. The company also pays dividends; and
ended up paying me dividends twice for $24 or $48 dollars
plus the $794.16 profit. That equals to a… $842.16 dollars
profit!

This is a 13.31% return in 8 months
Date Shares Total

Name Bought Bought Price Amount
Herbalife
International 6/2011 120 $52.72 $6,326.40
Herbalife
International 2/2012 120 $59.38 $7,120.56
PROFIT
Shares Profit of 1rst 2nd Total

shares Dividend Dividend Profit
120 $794.16 $24 $24 $842.16
The chart above shows the profit I received by

investing in the Herbalife International Stock.
The reason I started investing in Mutual Funds (and I
am now investing in ETF’s) is that it is easier to invest in
them rather than in individual stocks. It was also easier for
my dad to teach my brother and me to invest through mutual
funds.
My dad taught me that ETF’s have many different
stocks in their fund like Mutual Funds; and that it is an
advantage investing this way.
ETF’s are better because the prices do not go up and
down as much as they do with individual stocks; and they are
more stable. Stability is something that worries a lot of
people when they start to invest in stocks. From what my

dad has told me, EFT’s are also better because you do not
have to look at them as frequently as Individual Stocks.

Mutual Funds – Mutual Funds are great because you can
invest in stocks or bonds. If you choose to invest in Mutual
Funds, start by choosing an S&P 500 Index Mutual Fund.

ETF’s – Again, understand that you can also invest in stocks
this way.
The following ETF’s that I now have in my account:
 S&P 500 (500 best US companies)

 Small- Cap Index (2000 best US companies)
 Mexico Stock market (35 best companies)
 Indonesia Stock Market (20 best companies)
 Herbalife International (Stock)
With ETF’s you can also invest in companies in the

following industries: gold, real estate, technology,
transportation, energy, other countries, etc.
I hope that in Chapter 12 you learned how stock is
bought; and why you should not be afraid to go for it. Now
that you know a safer way to invest your money through
ETF’s (rather then investing in individual stocks), there is no
reason why you should not give investing in stocks a try!
By investing and by owning, you will be one step closer to

becoming rich, rich, and rich!
Now that you know why it is important to invest, in

Chapter 13, I am going to show you how to start to invest.
CHAPTER 13 – OK, HOW DO I START

TO INVEST?
Every time I talk about investing, people do not understand

how to get started. They also do not know where to go to
open an account and neither do they know in what to invest
their money.
If you do not have experience when you decide to
open an account; it can be intimidating and hard to
understand when they explain how the accounts work; you
will feel confused.
I have already talked about the basic things you
should know about investing but in this chapter, I will
explain further so you can feel comfortable about getting
started. You really need to understand a couple of things and
have patience.
Once you have the account open, you have to choose
a Mutual Fund or an ETF to invest in from one of the funds
the companies offer.
It is hard to decide what companies you are going to
invest in because there are so many choices. I started with
mutual funds and now I invest in ETF’s such as the S&P 500
and Small Cap funds.
THREE THINGS TO KNOW

1. When you are less than 30 years old – Invest only
in Stock Funds. The reason is that you have a lot
more years to invest so you should only invest in
stocks and stock ETF Funds.
2. As you get older, start to invest in bonds – When

you are 30 to 50 years old, invest 80% in stocks and
20% in bonds
3. Understand Symbols – As you know there are many
companies with similar names and when you try to
invest in a company, you could get confused. For
this reason, they assign symbols (letters) to help
make it easier identifying each company. Stocks
have four letters, Mutual Funds have five letters, and
ETF’s only have three letters.
 S&P 500 – IVV or VOO

 Small cap companies – VB o SCHA
 Apple - AAPL
START INVESTING
Let’s say that you do not have too much money to get
started. You can always start with a simple $100 dollars. I
recommend you start with Charles Schwab because that is
where you can start with $100 if you do not have too much
money.
MY PLAN
Since I only invest in ETF’s that is what I will teach

you to do. My plan invests in only three ETF’s. You can
start with one but the goal is to have three ETF’s in your
portfolio. You should stay with the same brokerage
company as the one with which you are investing.

THE THREE ETF’s I RECOMMEND
 S&P 500 Index
 Small Cap Index
 International Index
You can invest in these three ETF’s at the three

companies I recommended in Chapter 7, Schwab, Fidelity
and Vanguard. You need to choose one company, open an
account and look for the symbols of the three ETF’s I have
just mentioned.
Once you open the account and deposit your money,
you select the ETF. I would recommend that you first start
with an S&P 500 with an ETF if you only have $100 dollars.
If you have more money, the idea is to invest equally in all
three ETF’s. Let’s say if you start with $600, you could
invest $200 in each of the three ETF’s that I mentioned.
WHY START WITH $100 DOLLARS

1. It is the simplest way for children to start.
2. As you can see, you do not need too much money to
start to become an investor.
3. You can start with a large company fund. Look at
the following two ETF’s.
* Schwab - Schwab U.S. Broad Market ETF (SCHB)

0.04% yearly fee

* Vanguard – S&P 500 ETF (VOO)
0.10% yearly fee
You’re first ETF with $100: Choose Schwab U.S. Broad

Market ETF (SCHB) 0.04% yearly fee. Invest $100 every
month until your account is $500 dollars.
Month ETF Amount Total

Symbol Invested Invested
#1 SCHB $100 $100
#2 SCHB $100 $200
#3 SCHB $100 $300
When you get to $400 or start with $400, divide and

invest in two ETF’s ($400 divided by 2 = $200 in each – see
next chart).
START WITH $400 DOLLARS

1. You start to diversify your money more.
2. Invest only in ETF’s; one that has large U.S.
companies and one that has small U.S. companies.
3. Select the following two ETF’s.
* Schwab - Schwab U.S. Broad Market ETF (SCHB)

0.04% yearly fee

* Schwab – US Small-Cap ETF (SCHA) - 0.10%
yearly fee
ETF Amount Total

Month Symbol Invested Invested
Select $400
2 ETF
JAN SCHB $200 $200
SCHA $200 $200
FEB SCHB $100 $300

SCHA $100 $300
MARCH SCHB $100 $400
SCHA $100 $400
APRIL SCHB $100 $500
SCHA $100 $500
In the chart above in January, you started with $200

in each fund because you started to invest with $400 dollars.
Then you decide to save and invest $200 per month.
In February, you can invest $100 in each fund. That
is $200 divided by 2 funds that you invested $100 in each
one. You will then have $300 in each fund. See February.
When you get to $1,000 or start with $1,000 dollars,

divide and invest in three ETF’s ($1,000 divided by 3 =
$333.33 in each – see next chart).

START WITH $1,000 DOLLARS (three ETF’s)
1. The more money you have, the more diversification
you will have.
2. You will invest in two funds that invest in U.S.
Companies.
3. Now you start to invest in a third fund that invests in
International Companies.
4. The first two funds are in U.S. Companies and the
other is with international companies.
 Schwab - Schwab U.S. Broad Market ETF (SCHB) –

0.04% yearly fee.
 Schwab – US Small-Cap ETF (SCHA) - 0.10%
yearly fee.
 Schwab – International Equity ETF (SCHF) – 0.09%
yearly fee.
ETF Amount Total

Month Symbol Invested Invested
Select $1000
3 ETF
JAN SCHB $333 $333
SCHA $333 $333
SCHF $333 $333
FEB SCHB $100 $433

SCHA $100 $433
SCHF $100 $433
Once you start, you can choose to save and invest

$100 dollars per month or $200 dollars per month. Whatever
amount you choose, divide it by 3 and invest in each ETF.
In the previous chart, we chose $300 divided by 3 =

$100 dollars invested in each ETF – see February in the
previous chart. In the second month, you will have in each
fund $433 dollars. That is how easy it is!

AFTER YOU START, THEN WHAT?
Once you start and have your account established and

you have selected the ETF’s to invest in, all you have to do
is decide how much money to save and invest per month. It
is very important to do this consistently over a long period of
time.
 If you invested $100 dollars per month @ 10%; in 30

years you will have $217,132 dollars.
 If you invested $200 dollars per month @10%; in 30
years you will have $464,234 dollars.
Ask your parents if they ever have had an investment

plan or if they have invested consistently. My dad has
helped me to see how much my account can grow when
investing small amounts of money every month through
these accounts. I recommend that you start by doing the
same.
In the following chapter, I am going to show you why
it is so important for you to not only start your investments
but to follow up with them and keep track of how they are
doing.
CHAPTER 14 – KEEPING TRACK
Once you are on your way, keep checking

CHECK
Now that your account is open, you need to check it to keep

track. Do this every three weeks or once a month. Now I
understand why I would see my dad checking his accounts
every month. Once a month when you invest, you want to
keep track to compare to see how you are doing.
Keeping track of your investments every month is
very similar to someone who competes in sports; during the
game, they want to know if they are winning or loosing.
Keeping track will also give you a lot of confidence and
more understanding of investing.

If you invest $100 per month
If you invest every month, you will buy each fund at
different prices, sometimes the prices go up and sometimes
they will be down. If you don’t keep track of what is going
on, you will get scared when prices go down. That is why it
is important to keep track to see how your funds are doing.
In the following chart for February, you paid $9
dollars a share. In March, you paid $11 dollars and so on.
Eventually you will have an average price that you paid for
the fund and this is very good.
You can choose to invest any amount every month. It can be
$100, $125, $200 or $25. Whatever amount you choose, you
need to write it in the chart so you can compare the results
from when you started.
You can compare your results one year to another
year, month to month, one quarter to another quarter, one
ETF to another ETF and so on. See the following chart:
MONTHLY CHART
Name Invested Shares Total

Date Fund Amount Bought Shares Price Total
Jan S&P 500 $100 +10 10 $10 $100

(VOO)
Feb S&P 500 invest +11.11 21.11 $9 $189.99
(VOO) $100
Mar S&P 500 invest +9.09 30.20 $11 $332.20
(VOO) $100
Apr S&P 500 invest +10 40.20 $10 $402.00
(VOO) $100
IF YOU INVEST EVERY MONTH
The chart above is only for one stock or ETF. As you

can see, the original price was $10 dollars in January. But in
February, the price went down to $9 dollars so now you were
able to buy 11.11 shares instead of 10 like in January. This

is a good thing.
Now look at what happened in March. The price of
the fund went up to $11 dollars. Since the price of the fund
went up, now you were able to buy fewer shares, as you can
see, it is only 9.09 shares instead of 11.11 like in February.
When you buy another stock or ETF, you still have to
keep track to see how you are doing.
WHAT IS A PORTFOLIO?
A Portfolio is a collection of different assets

(investments), like stocks, bonds, cash and others; it is your
investment account. A portfolio can be only one stock or
one mutual fund. It can also have one stock and one mutual
fund or it can have one stock, one mutual funds and one
ETF. In other words, the more investments your account
has, the more diversified your portfolio will be.
When you get to $400 or you start with $400 dollars,
I mentioned it would be best to invest in two ETF’s, one with
large companies and one with small companies. In the next
chart the ETF’s I chose are with Schwab (See chart below).
In the following chart, you will see that you started
with one ETF. When you had more money, you began to
purchase another fund and diversify your account. Now that
you have more than one fund, this is called a diversified
Portfolio or also known as your account.
Name Invested Shares Total

Date Fund Amount Bought Shares Price Total
Large
Jan (SCHB) $100 +10 40.20 $10 $402.00
Feb Large $100 +11.11 51.13 $9 $460.17

(SCHB) Divide
Buy 1 Amount
More Bought
ETF
Mar Large $230.08 +25.56 25.56 $9 $230.04

(SCHB)
Sm Cap $230.08 +23.00 23.00 $10 $230.00
(SCHA)
WHY KEEP TRACK

1. To see how you are doing with your investments.
2. To compare your performance to an index.
3. To become more knowledgeable.
4. To become more confident.
5. To continue to be motivated to continue to invest.
In this chapter, I wanted you to learn why it is so

important to keep track of your investments.
Once you understand why it is so important, you will
have more confidence and this will help you to continue to
invest consistently every month. It doesn’t matter if the
stock market goes down. If it goes down, this means there is
a “sale” in the stock market.
By reading this book, you now have more knowledge
about earning money, taxes and investing than 90% of
people. Make sure you get started.
CHAPTER 15 – CONCLUSION
Starting to invest is something that many people find

difficult. It is definitely not an easy thing to understand but
if you have the time and the want, it is very easy to learn. I
hope that by what you have read, you have learned that you
can start to invest with small amounts of money. By doing
this over time, little by little it will make you very wealthy.
Always remember that many people have excuses on why
they cannot start something they want. From what you have
read, I hope you have noticed how easy it is to begin.
Being 18 years old and having $50,000 in my
investment account did not just appear one day. My dad
started planning for my future at a very early age, which
helped me a lot but I also have been part of this process by
giving him a lot of money to help contribute and invest in
my account.
I get very excited when I see how much my account
is worth. It motivates me to invest more so my account will
grow even faster.
I want you consider how old you are and how much
you have saved up. If you do not like the number you see,
now is your chance to start.
You have two choices after reading this book. The
first is to continue what you are doing with your money…
NOT SAVING AND SPENDING IT ALL.
If you save $100 every month starting now, in 12
months invested at 10% compound interest, you will have
$1,320 dollars.
Your Three Scenarios

After reading this book, you can do three things:
1. It’s year 2013 and you decided not to save any
money. In 2043, it will be 30 years later, how much
money will you have?
2. You don’t have any money saved, but you decide to

start in 2013 to invest $100 dollars per month.
3. You don’t have any money saved, but you wait 5
years to start investing. You start investing $100
dollars per month in year 2018.
Amount Monthly Interest Years Amount

In 2012 Investment (%) Yr 2043
$0 0 8% 30 $0
0 10% 30 $0
Start
2013
$0 $100 8% 30 $146,815
$100 10% 30 $217,132
Start
2018
$0 $100 8% 25 $ 94,745
$0 $100 10% 25 $129,818
In the previous chart, you can see that you will have
more money if you start to invest in year 2013. As I told you
before, I always heard my father say; the sooner you start
the better it is in investing. Now you know how to start to
invest and you do not have any excuses.
MY ACCOUNT

I want to share my plan for my investment account.
Notice how much money I have now and how much I am
going to have 30 years from now. In the chart below you are
able to see the difference if I were to invest $0, $100, and
$200 every month at a different percent. You can see that by
putting in the highest amount of money each month, how in
30 years it makes me a millionaire.
1. I have $48,000 and decide not to invest anything in

30 years, look at how much I will have in year 2043.
2. I decide to invest only $100 dollars per month.
3. I decide to invest only $200 dollars per month.
Look how much money I would have in year 2043.

That is why you need to start to invest now.
Amount Monthly Interest Years Amount

In 2013 Investment % Yr 2043
$48,000 0 8% 30 $ 453,007
0 10% 30 $ 857,571
$48,000 $100 8% 30 $ 629,822

$100 10% 30 $1,054,703
$48,000 $200 8% 30 $ 776,637

$200 10% 30 $1,271,853
ACTION STEPS
Now I am going to remind you about the action steps

you should take:
1. Find ways of making more money, perhaps a part
time business so you can have more than one income
(tips, royalties, etc.).
2. Keep track of your money with a Budget.
3. Save 10% of the money you make.
4. Don’t get into debt.
5. Open an Investment Account and deposit 10%.
6. Invest through a ROTH-IRA retirement account.
7. Think of buying a house.
8. a.) Learn to pay less Taxes by understanding the
Schedule C form.
b.) Learn how to take advantage of business expenses

to save on taxes!
9. Learn more about Mutual Funds and ETF’s.
10. Read Money Magazine and Investors Business Daily
and investment books.
11. Invest $500 every month at 10% for 30 years to have
a $1,000,000.

By following these action steps, you will be on your
way to great success! I hope that you have thought about
many ideas you can put to use while reading this book.
Remember that before you put them to use, you must have
an understanding of what you need to do.
Again, I have been so lucky that since I was four
years old my dad has taught me everything I know about
money management. Having him show my brother and me
how to invest our money and start different businesses has
allowed me to show others my age, exactly what I am doing.
I never thought that I would be capable of writing a book on
my own, especially since I did not enjoy school. It just goes
to show you that if you put your mind to something and you
want it badly enough, it can happen.
I started wanting to educate others about finances as I
was growing up. My brother and I would always go with my
dad to his financial seminars. He would call us up for 15
minutes to explain to the audience what we were doing with
our money and how much we had invested. This slowly
gave me the confidence to share with other people what I
was talking about during those 15 minutes up on stage.

WHAT ARE YOUR GOALS?
When you set a goal for yourself, you must decide

that you are going to accomplish it. If you do not take action
in deciding that you are going to follow your goal, it simply
will not happen. If you do not decide, you will have the
same result you started with.
I started with the goal of wanting to write this book.
I am writing this book because my dad made me realize that
there is no material for teenagers and young adults on how to
manage their finances correctly. Schools do not teach us
these things; yet personal finance is one of the most
important topics we could ever learn. I see how people
young and old struggle with the simple steps of just saving
10% of what they make; and it really saddens me.
They do not save because they do not need to save
I am 18 years old and I have $50,000 saved up. My

mom is 50 years old, my dad is 56, and both have done very
well financially. They have been an example for me.
I have learned from both of my parents that you have
to work many hours for your money, so you need to be
careful on how you spend it. Do not just spend your money
to spend it.
I learned to ask myself weather I really need
something or do I just want it. This is very important
because some of the things we buy in that moment and don’t
need, end up sometimes costing us a lot of money.
I learned that if I am a responsible person, I will
always have the things I want to have.
The most important thing that I learned from my
parents is to have my own business. I learned this from just
not having them tell me to have my own business but by
watching them have their own business.
Having the amount of money that I already have
invested is a great start in preparing me to reach my goals in
the future.
When I am 21 years old, I want to buy my first
house. Buying a house will be an investment because I am
purchasing a piece of property that will go up in value.
When I am married with kids, I want to be financially secure

and not have to worry about whether I have enough money.
I want to be able to spend time with my kids just like my
parents did with my brother and me.
This may seem like I am thinking ahead many years,
but I have met people who do not plan far enough ahead and
they have financial trouble. I never want to worry if I am
okay financially. I want to enjoy my life. I believe you can
do that with no stress, if you take care of your money
correctly. Lastly, I want to travel the world and I know that
does not come cheap. These are just a few of the goals that I
have.
Writing this book has helped me to become more
motivated in helping me focus on what my dad has been
teaching me all these years. I have finally understood the
reasons why he has been teaching me everything about
personal finances.
I hope that by reading this book you have an
understanding on why it is so important to know what I have
shown you. By putting what you read to use, you will soon
have financial freedom and be able to complete your
personal goals without any stress.
If you have any questions or if I you need help in
any way, please contact me at … email, facebook, or my
website. (Greco, will you provide digits)
Do you want your finances to be the same?
I am glad my mom and dad started

teaching me at an early age
Triana Garcia
COVER BACK PAGE

“The earlier, the better” Triana Garcia
Wouldn't you like to know how as a young adult you

can start to become financially independent? By reading "I
am buying a million”
I will show you all the secrets that I have learned throughout
my childhood on finances. Step by step you will see how I
am on my way to becoming a financially independent and
how easy it is for you to do the same.
If you would have started saving $100 dollars a
month at 8% interest when you where 10 years old, you
would have $584,222 dollars by the time you are 50 years
old.
“It’s only $100 dollars a month”
What you‘ll learn …
 Why saving is important

 Why you should invest your money
 Why a Business is better than a Job
 How to make your money grow
 How quick your money can disappear
 How to pay less money on your taxes
“Triana makes personal finances very

simple and teaches young ISBN
adults the importance of proper NUMBER
budgeting as well as the basics
for making their money grow over time”
Tim Whipple, CPA

Excellent book Triana! I was intrigued by the depth of

your book. You have taken personal finance to a new
level that is inspiring to me. You make it sound very easy
too.
Here are some additional notes:
1. I will give your MS one more read through after

your dad takes another look.
2. When you print the first page, it has the number 0
at the bottom. I recommend visible page numbers
until page 4.
3. I tried to correct all the tense changes in your
verbiage as best as I could while keeping your
personal style of speaking.
4. I connected the redundancy by making a
reference to previous pages.
5. I absolutely love your quotes! I tried to get them
to stand out as much as possible. After playing
around with them, I found that by italicizing and
underlining them, they stood out more. If you care
for a different way to make them stand out, please
let me know. I feel that these can be pulled out
and used in your PR literature and on the back
and front of your book. Quick and quirky quotes
from you will go a long way in identifying your
personality.
6. I had a challenge with real numerals and spelling
the numbers out. It’s a general rule to spell out
numbers less than 10; however it became difficult
to do in many cases. Please note this in your re-
read and let me know if you want me to go back
and correct them.
7. The chapter fonts began with Arial but later, it
changed to Century. I began making the change
consistent with Arial and kept the pace

throughout the book. I can change this if you wish
or you can select all and change the entire MS to
Century font.
8. I also had a challenge with consistent headings
and will take another look at this when I reread
your book. For me, the formatting of your book
was just as important as the edits ;-)
9. On page 77, I mention a chart on page 74 and 75.
Let’s make sure this is correct before you go to
print.
10. I want to do a final read to your book… ok. This
will take only a few days or over this coming
weekend.
11. I apologize for the delay in getting this back to
you. Since I moved to NV and with it being my
first year here and working for a high demand
company, I am finally starting to become more
relaxed in my daily activities. Especially now that
I have learned the market a little better. Work in
the beginning was a bit overwhelming but is less
demanding now.
12. Your book has inspired me and I will teach these
things to my grandson, Cordell who is 15 and the
reason why I moved here. He plays JV football
and basketball for Arbor View High School in
Northwest LV (Centennial Hills) where I live only
about 5 minutes from my family ;-)
Feel free to call me anytime:
702.238.7407 (office)
310.452.2922 (cell)
deborahgranger@gmail.com

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I Am Buying a Million 1

All rights reserved. No part of this book may be

Published by T, K & G Publishing

The author and publisher believe the information presented in

Investing is not a “get-rich-quick” scheme. You must

Neither the author nor the publisher shall have liability or

How I am learning from dad and mom

Hello Everyone! Maybe you are reading this book because

works for you. Whatever age you choose to retire at, it is

Do not focus on what you have not learned,

Tomorrow is your future and it is up to you, what

was watch TV or be on my computer, as every kid did. Now

If you do not know why you have to save,

CHAPTER 1 – MY PLANNING STEPS

I feel that the first step to reaching an important goal in

If you think about it, everything in life has to have a plan;

attended. Because these kids came from wealthy families, it

THE PLAN FOR MY CAR

Once I hit the reality part of getting a car, I realized

brands such as Apple, McDonalds, and Starbucks. Why?

The answer was = $300 a month

$13,200 in 3 years or 36 months @ 10% interest

My Money Money Monthly

Since my dad told me he would split the cost of the

WAYS I EARNED MONEY

You are probably thinking, “Where did she get $150

My dad would tell us to look for ways of making more

Being consistent with saving and investing my

It is no surprise that teenagers have a hard time

From what I have seen over the years, teenagers are

This is the plan, put money in and not take it out

Now that I am 18 years old, I have $50,000 dollars

I know that I am on my way to accomplish my goal

The reason I am writing this book is to show people

how he is going to get from one destination to the other.

The Question is… WHAT IS YOUR PLAN???

It seems as if everyone has a dream to one day be

making a lot of money such as a doctor. What about having a

One of my goals is to have a business and not a job

What is the goal you have to become rich? Have you

The reason I personally feel that it is important to

We learned to follow rules from my

Following the rules and having a positive attitude

I have been around lots of parents, not just mine, who

What I would like to have in my future is time. Not a

“When I was growing up in Mazatlan, Mexico, I

They are known as the snowbirds

“Snowbirds are people who, during the months of

Mexico. They are Canadians and Americans who are retired

Not everybody is born with a million dollars

It is always important to have an idea of how you

Right now I am planning for things that I want to

* In 20 years, I see myself having a family

I want to be able to be my own boss, and earn a

$250,000 per year is $20,833 dollars per month!

If I am able to make $250,000 a year with my

PLANNING YOUR GOALS

I will give you an idea how to plan and reach your

Emergency Fund (Short-term goal)

A short-term goal can be a laptop, the cost $800 and you

Others short term goals:

Buy a Car (medium term goal)

Other medium term goals: