You probably know what is an Incomes and Expenditures Budget (IEB). And if we would talk in accounting terms, referring to a company, the difference between incomes (I) and expenditures (E) represents the financial result of that company and, in case this result is positive, then there is a profit, and if it is negative, the company has a loss. As we speak about the process of getting rich and about personal investments, from now on we shall refer only to the IEB of a family. Therefore, for a family the IEB would look like this:

MONTHLY INCOMES				MONTHLY EXPENDITURES
1	Husband’s salary	500		1	Household expenditures	80
2	Wife’s salary	400		2	Telephone bills	100
3	Interest from bank deposit	50		3	Car	200
4	...			4	...
TOTAL Monthly incomes		1150		TOTAL Monthly expenditures		1100

In the above example, the monthly financial result is: 1 150 – 1 100 = 50 EUR and it is a positive one. Therefore, from a theoretical point of view, under normal circumstances, this family is well off. However, if at a certain time, the expenditures would increase (unforeseen and unexpectedly) by more than 50 EUR/month (something is broken at the car), this family would have to “tighten its belt”. It goes without saying that if the husband or the wife is laid off or, God forbid, is not able to work anymore, the boss would, almost surely, say: “John ... you know .... you have been the best in our company for 12 years and I respect you a lot...., but I have to hire someone else to replace you, because you cannot work anymore as you did until now... and I cannot pay two persons... so that, I’m sorry....”. It would be a disaster, wouldn’t it? However, unfortunately, this situation is very real and it is not even necessary that something bad happens; it is sufficient that your boss finds a better, younger, stronger person and you may be sure that you lose your job... and I don’t even know if we can accuse that boss... as we live in capitalism, don’t we?

Ok, therefore for the near future the family in our example has a stable situation, but all its incomes are on an indefinite term, and the indefinite is the one that scares us, as we prefer something sure and on a long term, without ending if possible. Most of us spend exactly as much as we earn, it is extremely difficult to save some money, and if we manage to do it, we spend it when we first need it... If we succeed to earn 100 EUR more a month, we immediately find “an extremely necessary expenditure” to get rid of it... and believe me this is what 95% of the globe population do. The more you afford spending, the more you feel that you are richer..., essentially so you are. But if I asked you how you could afford spending more, you and the 95% would answer: “You should earn more”. To earn more, the only solution we see is to work more, to change our job or to accept working even more (worse conditions, more time spent in the office at the expense of the time spent with the family)... and .... do you happen to know a statue to honour a loyal employee? Therefore we work even harder to increase our Incomes, totally ignoring the Expenditure part, considered by us “an integral part” of fate...., but who told you that? The answer is: the parents and the education you received... Strange answer, isn’t it? But let’s see how we were educated. The same way birds teach their chicks how to fly and raptors teach their cubs how to hunt, our parents taught us what they did all the time, that is they paid the bills and always instructed us to take good marks at school, because that was the only way someone could get a good job. Essentially, this is right, but let’s see what happens when, after the tiresome 5 years of college you manage to be Mr. Engineer. You work a whole month (because you receive a salary only after hard work), and, before paying your hard work, the accountant transfers 50% of your salary as taxes to the state, therefore you bear a first taxation and then you go in a “happy” mood to the supermarket with the remaining 50% and... here, for every item you buy you pay in addition 19% VAT ???, that is the second taxation...., therefore you have only (100% - 50%) – 19% = 40,5% !!! but wait...do you imagine that was all? There is more: house tax, car tax, local taxes etc... and so, if you manage enjoying about 35% you are lucky… and you even start believing that justice is at the “sea bottom”. Attending this course, even from Lesson no. 2, you can learn more about how you can spend more with the same income.

Now let’s look a little to the Incomes side. As we mentioned in the above example, incomes are for an indefinite period and they depend on a lot of factors (how the business of your company is doing, which is the inflation rate, on the competitors, on the bank interest rate, etc.). There are no Incomes for long (indefinite) period of time. Long Term Financial Investments, exactly what you are going to learn to do, can produce this type of incomes. If tomorrow the husband in our example is no more in the mood to go to work, the incomes of that family will be dramatically smaller. What you are going to learn is how you can afford not to be in the “work mood” and your incomes not to be much influenced by this decision, which is “strange” for you just now.

I could endlessly talk to you and you do not hear anything, so let’s get down to testing. To build a strong building you need proper materials, skilled workers and a good foundation. You will learn all of this during the course, but it is not less important to know the land we are going to erect that building. That is why, to enable us to know you (and at the end of the course we’ll show you where you have started from), please fill in the table below and send it to us, and we will perform your financial analysis, and we will customize Lesson No. 2 for you with the first suggestions of improving the Incomes and Expenditures Budget of your family. The data to be received by us will remain strictly confidential and, anyhow, we only have your e-mail address, and you may always visit us at our head office.

When you fill in the tables, please take into consideration the following aspects:

• In the Incomes table fill in just your net incomes (the net salary, interest and income after taxation, etc.);
• In the Expenditures table, fill in the monthly average expenses. If, for example, the annual real estate tax is 30 EUR/year, and you pay it in a lump sum at the beginning of the year, divide 30 to 12 months and write 2.5 EUR in the table.
  
  

1. An overall view on the Incomes and Expenditures Budget and the classical methods of taxation for a natural person.
   
   
2. Analysis of the Incomes and Expenditures Budget, of the prospect and of the methods used to increase the incomes and to decrease the expenditures.
   
   
3. Where does money come from, why and how it is taxed, depending on its source. Test of evaluating the financial skills and the incomes. Basic notions of Financial Education. The 45-year plan.
   
   
4. The world of the rich is a world that lives according to other rules. We begin with the beginning, and the beginning is changing your way of thinking.
   
   
5. Preparing a Plan to obtain the financial independence.
   
   
6. Basic rules and techniques for increasing the incomes and decreasing the personal expenditures (that is for getting rich).
   
   
7. Types of Investments and types of Investors. Active Investments. How we can generate an Active Investment.
   
   
8. Identifying, attracting and using external resources - Other People's Time, Other People's Money, Mentors and many other absolutely necessary things.
   
   
9. DREEEAMS ! I understand that if I invest I earn money without working... but where from can I get money to invest? Financial leverages. Pirghiile financiare.
   
   
10. The Past and Visions on the World Financial Future. Why is it good to be Rich? Ways of protecting the Investments.