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The Net Worth System

It's time to put on your Financial Engineering hat - in this video we are talking about the structure you can deploy to systematize and automate your personal finances.

The goal of this video is the provide you with the systems to thrive no matter what is happening externally in the market. With this foundation in place, you are setting yourself up to be completely indestructible.

True defensible net worth requires layers of protection
Let's start with defining the individual components that make up the system. 

PUMPS

Think of a pump as a stream of income. The goal here is to have as many as you can. A pump is bringing currency into your life and should essentially do three things:

1) Create value in the market
2) Convert that value into revenue 
3) Create, protect and guard your surplus

Example = your business or multiple businesses

BUCKETS

Think of a bucket as a specific asset class you are investing in. A really good bucket should do three things:

1) Store your capital 
2) Pay you a yield
3) Get more valuable over time

You may not always be able to check each one of these boxes but this is a good frame of reference to have when you are evaluating an investment decision. 

Example = Real Estate, Marketable Securities, Crypto, Investment in companies

MOATS

Think of a moat as your liquidity or cash equivalents. The goal with a moat is to lock down your risk exposure. 

Example = Life Insurance, COH, Owning a home outright

HOW THEY WORK TOGETHER

Pumps are filling the system with cash. Every month, we are moving our surplus of capital out of fiat and into buckets. Underneath that, there are layers of moats to defensify the whole system.
THE WEALTH MACHINE

This is the structure we deploy to systematize and automate our personal finances. 

You can visualize this map as pipes in a drain structure or growing roots underneath a tree. 

Take the time to study this map and seek to understand each of the moving pieces in the machine. 

Once your machine is set up and in place, you become the engine to power this machine forward.

To all my builders, I salute you!
 support@systemsofwealth.co
Copyright © 2022 | Systems Of Wealth | Terms & Conditions
Copyright © 2022 | Systems Of Wealth | Terms & Conditions