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The Personal Economic Model

The Personal Economic Model will give you a visual picture of how money flows and allow us to communicate at the highest level. The PEM is designed to help you visualize your money from perhaps a different perspective than you have ever seen before and may help you to increase the overall efficiency of how you manage your cash flow. Let me introduce you to this powerful financial model.

You have money coming in today through your Earned Income. The big tank is called your Lifetime Capital Potential and represents the fact that you are going to have a great deal of money flow through your hands over your working career. Money does not sit in this tank but continues to move into the monthly Cash flow tube where your money must then pass through the Tax Filter and allow the government to take their share of your earnings before it passes to the Current Lifestyle tube where you can spend it. Money, once in the Current lifestyle tube, is gone forever – never to return.

The Lifestyle Regulator sits just behind the Tax Filter and allows you to regulate the flow of money into your Current Lifestyle and how much you decide to pump into the Savings and Investment tanks. Looking at this picture, it becomes clear that you must pump money into these two tanks during your working years to have the resources that will be required to maintain your present standard of living during your retirement years. My job is to provide you the information you need to see where you are today, help you visualize where you want to be in the future, and help you pursue the balance necessary between your Savings and Investment dollars to help solidify your financial future – preferably without you having to change your current lifestyle to work toward your goals.