Frequently Asked Questions
CHARITABLE GIVINGQ: Where does charitable giving fit into the Five Levels of Freedom?
A: Developing a healthy view of giving is the first step towards building true wealth. When giving is ignored, saving and investing often become empty exercises in temporal futility with no lasting value. Decades of research has proven that helping those less fortunate than us is one of the greatest joys attached to wealth. Therefore, MakersGroup Financial stresses the importance of being charitably-minded. This emphasis occurs early in the process of Level One.
DEBT
Q: What is your view of debt and how does it play into your Five Levels to Financial Freedom?
A: Our view of debt is different than most. When one learns about the inner workings of the global monetary system, it soon becomes apparent that the entire system is debt-based. This means that virtually every piece of currency within the global monetary system represents a piece of debt. Our debt-based, or credit-based, global economy makes operating without debt impossible. Therefore, we have separated debt into two categories: good debt and bad debt. We believe that debt is often necessary to grow wealth, whether it be a business loan to open or grow a business, a student loan to gain expertise in your field of choice, or some other debt. Someone with an enormous amount of bad debt (credit card, consumer loans, etc.) should focus on a debt reduction strategy before embarking on the Five Levels to Financial Freedom.
Q: Do you recommend a particular debt reduction service or strategy?
A: Our services and expertise are geared toward educating those who are ready to begin building their financial game plan, not trying to pay off massive debts. However, the two concepts of reducing debt are simple and straight forward: lower your consumption and/or increase your income. Therefore, we do not currently recommend any particular debt reduction service or strategy.
SAVING
Q: What percentage of income do you recommend that someone should save?
A: A minimum of 15%.
Q: Why is saving money important?
A: Businesses measure their success in many ways. One of those ways in their rate of quarterly and annual profits. At the individual level, your profit rate is your savings. In other words: Savings= The profit from your labor. Yet, millions of Americans work hard all year long for a 0% profit rate because they choose not to save money. Instead, they give all of their "profit" to merchants, corporations, through consumption. Saving money has become a lost art form in America. In 2005, it was reported that the United States actually had a negative savings rate. Next to developing a healthy view of giving, good saving habits are among the most important skills that you can adopt in your quest for financial freedom.
Q: Why should I save 15% of my income when it will just sit in a bank collecting less than 2% in a bank?
A: When you follow our Five Levels of Financial Freedom, your money will not be lying dormant collecting paltry amounts of interest. It will be put to work and closely monitored by yourself and your advisors.
