Private Reserve Strategy

Spenders – Savers – Wealth Creators

We all know that being in debt is basically not good from a financial point, right? And that paying cash is the best thing we could do financially. Parents stated it, ‘wealthy’ friends did it, the news media hypes it. It is the touted solution to how to become ‘rich’ or at least act like the rich; to not pay interest.

That was it, the answer I thought… until I was enlightened with the concept of becoming a Wealth Creator – of creating and using my own Private Reserve Strategy. But to understand this, we need to fully understand the options.

The First – Be a Spender:  (They Work to Spend)

This is pretty much where all of us start out. We’re fresh out of college but we own nothing (worth anything) and we hopefully owe nothing. It’s those of us who had little money but we had a job so… when we went to buy our first car what did we do? We looked for financing options. Why, because the only ‘collateral’ we had was to borrow against our future earnings even if we knew paying interest wasn’t all that great. Than about the time we got that first car paid off, the “tires fell off” and we needed a new one. Life started to look something like this:

And for many, this is where they stay. Sadly so, much of America today is in this infinite loop – never quite getting their head above water. But for a select few, they hold off on increasing their lifestyle with that new raise, with the bonus they just earned and they save along the way. They begin to approach life as a Saver – they work to get “above the line”

The Second – Be a Saver:  (They Save to Avoid Paying Interest)

The Saver, looks like this.


Now this is definitely a better financial position then the Spender and this is the position most financial pundits push for. I agree with them; it’s a much better position! The Saver postpones gratification, saves up for what they want and then pays cash. They approach life from ‘above the line’ by saving for their cars, vacations, education, and perhaps even for Christmas in a Christmas fund account. This is not bad, it’s just not necessarily getting your dollars to work their hardest for you.

The common theme I come across with Savers is that they are working hard but they often have this gnawing feeling that they are running like hamsters on the wheel… wondering if they will ever get out of the rat race.

One of the reasons I believe they feel this way is because they are really ‘self-financing’ their purchases. While they may feel good about their purchases, and they should, what they realize perhaps deep down is that they are still struggling to get ahead. Why? Because they are still borrowing funds – they are just borrowing from their own savings without realizing they are borrowing!

They are interrupting the compounding of their own savings!

Consistent resetting of the compounding growth of your money will make you feel like a hamster. So how can you solve this dilemma? By becoming a Wealth Creator.

The Third – Be a Wealth Creator:  (Compound Interest and Collateralize Your Purchases)

Before I explain it, becoming a Wealth Creator is not an overnight success. It’s not easy and it requires discipline. It requires patience to set up. However, the benefits, can be enormous. It’s learning how to ‘turn the wheel’ from cash-flow-out, how most design their financial lives today, to cash-flow-in.

What does being a Wealth Creator look like?:

Wealth Creator

Wealth Creators effectively use other people’s money (OPM*) to make their purchases. They collateralize their purchases by borrowing against their own savings, allowing the savings to continue to grow (the green line). This prevents the interruption of compounded earnings which can set back anyone’s savings strategy. Using the same cash flow, they end up way ahead.

How? They create a pool of capital that they own and control. In turn, this capital has features such as:

*  You can collateralize your pool of capital any time you want.
(get cash – borrow against it)

*  The value of your pool can only go up, never down.

*  You are not taxed (when properly set up) on the growth of your capital.

*  You are not taxed (when properly accessed) on access of your capital.

*  It’s protected from creditors in the state of Arizona. (ask us about protection in your state)

*  You can take money out and pay it back on your terms.

*  You may be able to create a tax-free (*today’s rules) retirement income stream.

*  You maintain liquidity, use and control of your funds while they keep growing.

There are numerous benefits to creating a pool of capital that continually grows and places you in control of your cash flow.

So if you want to learn how to increase your net worth, change your cash flows, minimize your future taxes and increase your future income, you may be a good candidate for learning about the Private Reserve Strategy.

Want to know if this strategy will work for you?
Schedule a 60 minute introductory consultation

And to prepare yourself… take a quick look at our FREE download that goes into more depth on a few of the key items you’ll want to know.

Implementation of a “Private Reserve Strategy” is not some scheme but it provides the opportunity to change your financial world from cash-flow-out to cash-flow-in while providing solid returns in a tax-favored manner that can only go up.
This provides Peace-of-Mind.