Earlier this week I attended the first of seven classes of Kustom Design’s Level 1 financial boot camp.

paraphrased: “Accumulate assets that are valuable whether or not the financial system crashes.” - Mike

The class is taught by Michael E. Lepitre. Mike is super passionate about money, and it shows when he’s teaching.

Financial freedom: Where you do not have to work for money. Instead money works for you providing plenty to fulfill your purpose, enjoy life and allow your wealth to grow for future generations and charity.

The 5 Steps

  1. Develop a closed circle budget.
  2. Eliminate bad debt (consumer & mortgage).
  3. Legally Minimize Taxes.
  4. Wealth accumulation & increase passive cash flow.
  5. Wealth preservation.

Today’s educational system focuses on:

Classes of Investors

Key Differences

#### Passive Investors * no control * higher risks * banks will not lend money to them * higher taxes * worries about market crash * low returns * plan can run out of money * may never retire

Active Investors

Cash Flow Quadrants


Self Employed

Business Owner


investment income

There are people who become wealthy in each quadrant and sometimes derive income from different sources.

History of Money

Wake Up Call

Banks make a tonne of money off of our money. E.G. If I deposit $100,000.00 in to the bank and I receive an interest rate of 3%. I can expect to make about $3000.00 in a year.

The bank could then lend out $100,000.00 at a rate of 6% and make $6000.00.

So far the bank has lost $3000.00 but gained $6000.00, so that would be about a 100% return for them.

Apparently, banks can actually lend out 20 times that original $100,000.00 I put in. Which means that bank can lend out $2,000,000.00 at 6% and get a return of $120,000.00 in a year. It costs the bank $3000.00 and earns them $120,000.00. This sounds crazy!

It’s called fractional reserve banking

Next, up it’s time to visit the Finance section of the Khan Academy.

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