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At this rate, the Joneses were never going to keep up with themselves. I saw the sequence of their building blocks
as follows:

Gap Analysis Financial Baseline Freedom Day
Entities Forecasting Assets Wealth Account Cash Machine Debt Management

Leadership + Conditioning + Teamwork

Jean and John Jones’s Wealth Plan
Based on their Gap Analysis , it was clear that Jean and John had a lot of right things going on, but definitely at the
wrong times. A little delayed gratification would do them a whole lot of good. The first thing that popped out at us
from the analysis was that their six rental properties were part of their personal finances. Their Financial Baseline
showed that they needed entities. Then we’d reallocate their assets and teach them how to invest money before they
spent it.
I’ll say it again: money does not come to chaos. Holding six rental properties in a personal checking account
causes chaos and works against being able to identify a Freedom Day . We immediately took care of the Entities
building block. This is what I call a “911.” We called one of the CPAs we know in our Team-Made Millionaire
community and set up two LLCs for the Joneses’ properties, establishing a trust to protect all their assets. We also
set up an S corporation for the Cash Machine I knew Jean was going to create.
Though a lot of the spending was a lot of spending, through Forecasting it was evident that Jean and John also
had some legitimate business expenditures that were being paid with posttax dollars. They needed better expense
management as well as some conscious spending. For example, they were going to real estate seminars to learn how
to better forecast and manage their spending. Given their investments, these seminars were deductible expenditures,
but the couple hadn’t deducted them. And because Jean and John chose to remain in their salaried jobs while
investing in real estate, they were missing out on another huge tax strategy. Depreciation is a valuable accounting
tool and depreciation deductions can be used to reduce taxable income. Because they owned property without being
professional real estate investors, Jean and John could account for only $25,000 depreciation on the six houses they