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Begin with the End in Mind

We believe these principles are the four essential building blocks of a financial plan that provides both security and freedom to live the life you love.  

1) Clarity: Start with the ROR in mind. 

When we talk about ROR, we are not talking about rate of return.  Instead, we are talking about return on result.  Return on result means you are focusing on the results of your financial actions rather than just your rate of return.  If you want to achieve true financial freedom or independence, it starts with getting clarity on the results you want, and then building a plan to get those results. 

2) Efficiency: Minimize Opportunity Cost

Perhaps the most important piece to remember about efficiency is Opportunity Cost because Opportunity Cost factors in both money and time and makes each decision cost much more than we originally think.  While most people think of each purchase as costing them the price on the price tag, Opportunity Cost means they are paying far more than just the sticker price.  You see, by spending a dollar, you are not just losing a dollar, but you are losing what that dollar could have earned over the rest of your life.  For example, if you spend $100 today, you are missing out on $380 of interest that $100 would have earned over 40 years at a 4% annual interest rate.  

Efficiency comes from having the highest volume of money growing at the fastest rate while having full control and access to that money.  


3) Consistency:  Maximize Your Incentive to Save

As mentioned, efficiency comes not only from compounding and control of your money, but also from the amount of money that is being compounded and controlled.  The ability to save more money in any saving vehicle as early and as consistently as possible is extremely important.  Having your dollars do multiple jobs while maintaining control of those dollars give you more financial flexibility both during your working life and in retirement. 

4) Use: Investing in Your Greatest Asset

You are your number one asset.  The asset which will produce the greatest return of all of them is yourself.  The fourth principle of Use means that every decision you make should ultimately help use your money in a way that aligns with your goals.  Use is simply putting the first principle, Clarity, into action.  It is letting you live the life and realize the ROR, return on results, you set out for yourself.    

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