Financial Black Belt™ Financial Self-Defense Training

Recently, I have been asked what it takes to achieve the rank of 1st Degree Financial Black Belt™. So, I have put together the structure of the training I offer under my Financial Self-Defense Training. 

Let me begin by saying that this is the most intense financial training an individual can experience, because you don't just learn the requirements, you execute them. I say "can" experience because not everyone has the special je ne sais quoi, that little something that eludes description, to become a Financial Black Belt™. Membership in the Financial Black Belt™ ranks is exclusive because achieving the rank of 1^st Degree Black Belt requires a life-long commitment to do the extraordinary with ordinary resources.

Achieving the rank of 5th Dan Financial Black Belt™ (Master), is a life-long journey and often isn’t achieved until one is retired. It takes, on average, 3 years for a person studying martial arts to become a Black Belt. That is, of course, so long as there are no interruptions along the way and he or she attends class at least twice a week. Becoming a Financial Black Belt™ will take longer. However, the same discipline required to earn a Black Belt in martial arts is required to become a Financial Black Belt™. You have to fight past the pain, the setbacks, and the times when you feel like giving up. Of course, just as with martial arts training, you do not begin as a Black Belt. You have to work your way through the ranks. Everyone, regardless of his or her current financial situation, must start as a No Belt. Also, just like martial arts, everyone will progress at his or her own pace, from No Belt to 1^st Degree. The time frame is determined by how determined you are. Everyone starts as a No-Belt, but where an individual finishes, is dependent upon that individual.

Financial Self-Defense training is available for individuals, groups, and employees. To learn how to start training today, send your email request to financialblackbelt@gmail.com.

The Ranks and Requirements for each:

No Belt: Upon starting the Financial Black Belt™ Financial Self-Defense Training, an individual will be given the information he or she will need to know and practice in order to advance to the next belt level. Each belt level achieved will result in the individual receiving additional information and action items he or she will need to practice before being tested for the next belt. Yes, there is a test for each belt level.

White Belt: In order to attain the rank of White Belt, an individual must understand and be able to explain the basic concepts of personal finance and investing.

Yellow Belt: Must demonstrate that he or she has established a monthly budget using the O.N.C.E. priority process and has set up allotments with employer as described in the strategy.

Orange Belt: Must demonstrate that he or she has established a Tier 1 Emergency Fund containing 3 to 6 months of living expenses

Green Belt: Must demonstrate that he or she has reached a Tier 2 Emergency Fund containing 1 year’s net salary

Blue Belt: Must demonstrate that he or she has reached a Tier 3 Emergency Fund containing 1 year’s gross salary

Purple Belt: Must demonstrate that he or she has paid off all unsecured / consumer debt and maintains a zero balance on all credit accounts by paying any incurred unsecured / consumer debt balance off monthly

Brown Belt: Must demonstrate that he or she has established a taxable investment account with a reputable brokerage firm equal to 1 year’s gross salary

Brown Senior Belt: Must demonstrate that he or she is maximizing Roth IRA Contributions (for self and spouse) (<50 = $6,000 / >50 = $7,000) Totals based on 2019 IRS limitations. Contribution limitations are subject to change due to IRS rules.

Red Belt: Must demonstrate that he or she is maximizing HSA Contributions (Self = $3,500 / Family = $7,000 or <55 = $4,500 / >50 = $8,000) Totals based on 2019 IRS limitations. Contribution limitations are subject to change due to IRS rules.

Red Senior Belt: Must demonstrate that he or she is maximizing 401k Contributions (<50 = $19,000 / >50 = $25,000) Totals based on 2019 IRS limitations. Contribution limitations are subject to change due to IRS rules.

Red / Black Belt: Must demonstrate that he or she has paid off all secured debt and establish the Champaign Waterfall Strategy for income distribution

1^st Dan Black Belt: Tier 1 Millionaire - Net worth millionaire where total assets minus liabilities equals more than $1M

2^nd Dan Black Belt: Tier 2 Millionaire - Financial assets millionaire where total financial assets equals more than $1M

3^rd Dan Black Belt: Tier 3 Millionaire - Retirement assets millionaire where all tax-favored assets equals more than $1M

4^th Dan Black Belt (Master Instructor): Tier 4 Millionaire - Liquid assets millionaire where all taxable accounts equal more than $1M

5^th Dan Black Belt (Master): Tier 5 Millionaire - Lifetime earnings millionaire where financial assets equal more than lifetime earnings (as recorded by the Social Security Administration)

Personal finance has 3 main goals: Maximize Profit, Enhance Sustainability, and Promote Growth.

Maximize Profit: a.k.a. Financial Offense: The goal is to advance towards the target and dictate positive outcomes.

Enhance Sustainability: a.k.a. Financial Defense: The goal is to protect against possible and probable threats.

Promote Growth: a.k.a. Financial Momentum: The goal is to use life’s momentum to find new opportunities.