HACKING FINANCE - A NEW PARADIGM

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 HACKING FINANCE - A NEW PARADIGM

Hacking Finance
By George Antone
www.FYNANC.com

FIRST EDITION

Copyright © 2018 by George Antone. All rights reserved.

No part of this book may be reproduced or transmitted in any form or by any

electronic or mechanical means, including information storage and retrieval
systems, without permission in writing from the publisher, except by a reviewer
who may quote brief passages in a review.

Printed in the United States of America

This publication is designed to provide information with regard to the subject

matter covered. It is sold with the understanding that the publisher and author
are not engaged in rendering investment, real estate, legal, accounting, tax, or
other professional services and that the publisher and author are not offering
such advice in this publication. If real estate, legal, or other expert assistance
is required, the services of a competent, professional person should be sought.
The publisher and author specifically disclaim any liability that is incurred from
the use or application of the contents of this book. 

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ACKNOWLEDGEMENTS

To the people who always

believed and supported me throughout –
my family and the family at FYNANC…
I am truly blessed to have you in my life.

To the members of FYNANC…

YOU are the reason that I keep going -
finding and sharing these financial shortcuts
and loving every minute of it!
THANK YOU!

To the members of the inner circle (FIT) at FYNANC…

You are impacting communities,
making a difference,
and living a life of significance.
The world is becoming a better place because of YOU!
I AM PROUD OF YOU!

To Bob Leeper, thank you for your help

on editing this book.

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“After this, there is no turning back. You take the blue

pill—the story ends, you wake up in your bed and

believe whatever you want to believe. You take

the red pill—you stay in Wonderland, and I

show you how deep the rabbit hole goes.

Remember: all I'm offering is the truth.”

- Morpheus to Neo in the movie

“The Matrix”

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THE PROMISE
You are about to discover a completely new paradigm for building wealth, with
less risk, less stress and better returns than the one you are currently using.

This new approach starts with you reading this book (taking the “red pill”),
waking up and seeing the existing Financial Matrix.

Let’s dive in.

THE QUESTION THAT STARTED IT ALL

“Is there a way to build financial security without investing in stocks, bonds,
mutual funds, precious metals, real estate, or even selling anything or starting
a business? By the way, I also cannot earn any more income in my job or
career. I feel like I’m moving backwards every year!”

That was the question a lady asked me as I walked off the stage having just
finished my presentation at an event in Palm Springs in front of a few hundred
people. The lady was probably in her late 50’s. I looked at her, laughed and
thought to myself, “she must be kidding.” But she was not, and her facial
expression said it all; I could see her fear and desperation.

Seeing her anxiety, I decided to challenge myself to come up with an answer

to the question. “Is there some other way of building wealth within the existing
financial system that can be accomplished with less risk and less stress?”
Little did I know this quest would lead me to discover a new paradigm for
building wealth capable of helping everyone willing to “take the red pill” and
learn how to financially benefit working within the system.

This book is meant to open your eyes to this new paradigm. You always knew it
was there but could never quite put your finger on. I believe this paradigm has
the potential to change your financial future.

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In fact, many people will find it easier to relate to this paradigm than to the other
wealth building techniques being taught. By the time you are done reading this
book, I hope you will agree.

Let’s dive into the rabbit hole and start by looking at the Matrix - the “Financial
Matrix!”

THE RACE
Imagine you are in a race. The starter pistol goes off. You start running towards
the finish line. At some point, you decide to look up toward the finish line, and
to your horror, you see the finish line is moving away from you, and at a faster
rate than you are moving! In other words, even though you are running forward,
you are losing ground relative to the finish line (you are moving backwards
relative to the finish line). Your first thought is “damn, I didn’t know the finish
line would be moving!”; your second thought is, “I need to find out how fast the
finish line is moving away from me;” and your third thought is “I have to start
running at a pace faster than the finish line is moving away; otherwise, I will
just keep losing ground.”

The finish line is moving away from you at a

faster rate than you are moving towards it

In real life, the financial finish line is indeed moving away from you, and it’s
moving very fast. We will be calculating the speed at which it moves a little later
in the book. Unfortunately, in today’s economic environment, the finish line is
indeed moving very fast away from most of us. People don’t realize it. They
work hard all their adult lives, and believe they are moving forward financially
when they are moving backwards… and this “losing ground” is backed by the
numbers as you are about to learn.

What you are going to learn here is what very few people on the planet know,
and as I said before, it is all backed by the numbers.

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Most people will never know about this, or they’ll find out too late in life, or
when they are out of time and energy!

The finish line in this race represents your financial goals, and it is being
pushed away from you daily by forces in the financial system (the Financial
Matrix), and for most people, their chances of ever crossing that finish line are
getting smaller every day.

This book will open your eyes and show you how to improve your chances in
the race to your finish line.

Keep reading.

 
THE TRADITIONAL METHODS OF BUILDING
WEALTH & A NEW PARADIGM
We are all familiar with various wealth building strategies.

These strategies can be categorized into 3 main buckets: Investing, trading

and saving money.

In the first bucket, investing, we all know people who invest in various
investments such as stocks, real estate, mutual funds, notes, etc. These

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techniques typically take years to master, and still have the potential to lose
money. I am a big advocate of investing, but it’s important that people know it’s
a lifetime commitment.

In the second bucket, trading is even a higher risk game. It also takes years to
master and requires an ongoing commitment of time.

The third bucket, saving money, is a good habit. However, most of us know
people who sacrifice their lifestyle to save their way to wealth, living on a small
portion of their income. Again, this requires a commitment of years. I am a big
advocate of saving money and living within your means, but not necessarily of
sacrificing lifestyle.

It turns out there is a new and exciting fourth option.

This fourth option is the new paradigm that I call “Hacking Finance,” which will
allow you to leap forward financially without having to commit years of your life
before you start seeing results. It takes a total of 6 hours to learn and implement
a single “financial shortcut” (“shortcut”), broken up into 30-minute segments.
The 6 hours may be spaced out to fit your time schedule. Once implemented,
each shortcut is placed on autopilot and runs in the background to build your
wealth. This approach is very different from the traditional approaches, as you
are about to find out.

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This new paradigm can, in fact, enhance your results when combined with the
3 traditional methods of wealth building.

I use the term “finance hacker” to describe any person who studies and uses
this new paradigm. I will expand on how a finance hacker is different from an
investor later in the book.

As I started to discover this new paradigm, I found initially, for myself, I was
trying to fit the new information you are reading in this book into one of the 3
traditional buckets used for building wealth. In fact, many investors will try to
do the same. I learned this was not unlike trying to explain how a car works to
someone who has never seen one; they will try to match it to something they
have seen before – such as a horse-drawn carriage.

Many will try to force the information you are reading here into one
of the 3 traditional buckets used for building wealth

Most new finance hackers only understand and appreciate the power of this
new paradigm once they begin to experience the benefits.

This new paradigm truly stands on its own. It’s a very different mindset than
that of an investor, trader or saver.

To better understand this concept, let’s start with “the secret formula” that gives
you a peek into the Matrix!

THE SECRET FORMULA

In the late 1990s, I worked at Intuit Corp on some of their products as a software
developer. There, I worked on the world’s #1 personal finance software,
Quicken. I also worked on another product called Quicken Financial Planner
(“QFP”).

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QFP helped users in tracing their progress towards retirement planning. It

offered “what if” scenarios and a simple step-by-step functionality.

There were many formulas for calculating various things. One of them was
embedded deep in the code, and it was an extremely powerful formula. I
believed that people needed to know this formula, what I called “the secret
formula” at the time. It impacted everyone’s investments, and yet, very few
people were aware of it!

Before I reveal the formula, think about the following scenario. What comes to
mind when you think about various investments? These might include stocks,
real estate, bonds, mutual funds, notes, tax liens, etc.

What if I told you there was a universal formula that tied all investments
together and was the defining formula on whether an investment was moving
you forward or not, would you want to know this formula?

I certainly did, and I believe everyone should know it too.

This formula, deep inside the source code of the QFP application, exposes and
helps with your understanding of the Financial Matrix!

Fragments of this secret formula have been found in financial-related literature

and strategies throughout the centuries. It transforms all who experience and
understand it. You will begin to “see” the Financial Matrix in a different light
and in ways that very few have ever seen. Once you understand the workings
of this formula, its’ financial clarity can and will, if used, elevate your wealth
building to a whole new level.

So here it is.

Let’s analyze this mathematical formula, known as the “Break-Even Rate” or

“Break-Even Return” that, when applied, will tell you how FASt your finish line,

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or defined financial goal, is moving away from you.

Let’s plug in some numbers to better understand what this means in plain
English.

For this example, let’s assume an effective tax rate (R) for federal and state of
40%. You can obtain your specific rate from your accountant.

Assume an Inflation Rate of 6%. Why 6%, you ask.

The government tells us it’s 3% or so, and the website ShadowStats.com

tells us it’s approximately 9% to 10% based on the old calculation that the
government used for CPI (Consumer Price Index) prior to the President Carter
years. We are going to use the average of 6% for illustration purposes.

Let’s plug those numbers in:

B = I / (1 – R)
B = 0.06 / (1 – 0.40)
B = 10%

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What does a break-even of 10% mean?

It means that your whole portfolio needs to generate a 10% return every year,
without using debt, and before taxes and inflation, just to maintain purchasing
power. That is correct, at 10%, you are only maintaining your purchasing power.

Think of the 10% as the speed at which the finish line is moving in our race
analogy. If you are moving at a speed of 5%, 6%, or anything less than 10%,
you are moving backwards financially! At less than 10%, you won’t really feel
the impact of that “lost ground” until you retire, when it’s too late. You will have
to face the reality that even though you are “making” money (running towards
the finish line), you have been moving backwards financially in terms of your
purchasing power.

No matter what the asset is, the chances of beating that break-even are pretty
slim if you follow most of the traditional advice given by many “gurus” on TV
and radio.

Most investors jump from one asset to another, and nothing seems to work.
They own or control assets, but in their gut, they know they are not keeping up.

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Their gut instinct is correct... None of them beat the break-even rate, but these
poor souls blame the asset or themselves and not the Financial Matrix which
has been built to work against them.

They are unaware of the combined power of the forces in the financial system
that has been working against them.

“Experts” give you returns of 5% or 6% and tell you that you should be happy.
Following this expert advice, without knowing it, most of the population is
moving backwards financially, and the Break Even Return formula proves it.

As a finance hacker, because of our knowledge, we use the financial system’s

strength and size to work for us. It turns out there is a way to beat the break-
even rate, and in fact, there’s even a way to leap forward despite the construct
of the financial system.

Finance hackers know they cannot stop inflation, but they can turn the inflation
“force” and make it work for them to increase their wealth – automatically every
year.

BEATING THE BREAK-EVEN

Is it possible to beat this break-even return?

The answer is YES, and there are 3 main methods to beat it, some more
impactful than others.

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Strategic debt happens to be the most impactful. I will not cover the others
here. Let’s find out what happens when adding strategic debt to the above
formula.

Let’s use the same numbers we used previously, but we will use 80% strategic
debt, which means we are using 20% of our capital in this (M = 20%).

B = (I x M) / (1 – R)
B = (0.06 x 0.20) / (1 – 0.40)
B = 2%

Why is that interesting?

Because the break-even rate of 2% is a lot more achievable than the 10% we
had before. We were able to lower the break-even by using strategic debt.

Strategic debt is defined as debt that is used in a calculated way to pass on the
negative effects of inflation to the lender. This debt has certain characteristics
such as a fixed-interest rate and a specific debt amount based on the value
of the asset it encumbers, among other things. The important thing to know is
that it is one of many powerful “tools” that a finance hacker deliberately uses to

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make the financial system help accelerate him forward financially.

Let’s step back and look at what just happened.

The finance hacker used a strategic and very powerful “tool” to lower the
break-even. The asset which was encumbered by the debt had to meet certain
criteria. It may have been real estate, or it could have been any number of
other specific assets, even those that might just sit in a filing cabinet.

The finance hacker used a very

powerful “tool” strategically to lower the
break-even and pass the negative effect of
inflation to the lender

Lowering the break-even is equivalent to slowing down the finish line movement
in our race analogy. The finance hacker knows how to “slow” it down so that
they can “walk” toward it rather than having to run faster and take on higher
risks with the possibility of losing everything.

HACKING FINANCE
As I started to dig into this new paradigm, I came to realize all I had to do
to generate better results was tweak the financing part of my investments.
I started to look for various ways to incorporate these strategies into other
investments, not just real estate.

What started becoming obvious to me was the assets became more or less
“invisible,” and the financial strategies became more prominent when looking
at the final investment results. I started to see how the Financial Matrix was
working, and how I was able to tweak a few things to leap forward financially
by using these powerful tools.

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What started becoming obvious to me was the assets

became more or less “invisible” to me, and the
financial strategies became more prominent

The difference between an investor mindset and that of a finance hacker

became very noticeable. In fact, it made me realize how much more difficult it
is to explain to investors how to “see” things differently.

As are most investors, I also had been too focused on the wrong side!

As I had more conversations with numerous investors and wealth builders, I

started noticing the absence of this strategic approach in their thinking. This
helped explain why most investors jumped from one asset to another. One day
they are investing in rental properties, another in stocks, back to commercial
properties, then on to “flipping properties.”

That’s when I realized that something in me had shifted. I had started “seeing”
loopholes in the financial system and knew exactly which financial strategy
(“tool”) I could use to leverage the inner workings of these loopholes. Some
of these strategies only required a simple visit to my local bank where I
implemented a few steps and knew I had just made that loophole work for me.
I called these simple strategies “shortcuts” or financial shortcut. I will explain
that in more detail later.

I had started to understand how to hack the financial system legally by studying
how it works and using that information ethically and legally to benefit me. Over
the years, I have shared this same information with many who have benefitted
from using these strategies.

I learned about using tools such as strategic debt (debt in a very strategic and
calculated way) to make the forces in the financial system work for me instead
of against me.

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I learned that I could further “bend” these forces to squeeze more wealth for
me, such as increasing “spreads” for example. When you have an income
stream paying you 8%, and you are paying 6% to the underlying debt, your
spread of 2% can be increased to 4% for example, simply by using two other
finance hacker tools.

Little did I know I was becoming what I call a “Finance Hacker.”

FINANCE HACKER
There are different layers to a finance hacker.

First and foremost, finance hackers choose lifestyle over money. They seek
a lifestyle where their personal finance system supports their experiences,
relationships, and social impact that make them happy.

Finance hackers take responsibility for their own financial situation. They do
not depend on “experts” like financial planners to guide them, even though
they do use them as resources. They know no one will ever care more about
their financial well-being than they will, and only they can make a difference
in their own financial lives. It starts with taking a proactive approach to their
finances, and not a victim’s approach.

A finance hacker chooses lifestyle over money. He or she seeks a

lifestyle where their personal finance system supports their experiences,
relationships, and impact that makes them happy

Some martial arts such as Aikido and Judo emphasize using your opponent’s
weight and strength as weapons against them. This follows the principle
that good technique can win out over sheer strength. A smaller person can
overcome a heavier, stronger opponent.

This is exactly what finance hackers do. They use the size, strength, and

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elements of the financial system, such as inflation, a very powerful force, to

work for them and not against them. They do so in the simplest, efficient and
most elegant ways.

Finance hackers have a toolbelt of very powerful financial “tools” (strategies)

to use for the right situations. They master those strategies and know how to,
and when to use them in the most elegant ways.

Finance Hackers use the size and strength of the financial

system to work for them, and not against them.
They do so in the simplest and most elegant ways

Finance hackers see themselves as “designing” elegant financial solutions for

various situations. Their way of thinking is more in line with the Steve Jobs'
way of thinking – elegant design, simple and effective.

A Finance Hacker’s way of thinking is more in line with the Steve

Jobs' way of thinking – elegant design, simple and effective

Finance hackers know it takes a firm understanding of these tools (which we

call “building blocks”) and how the financial system works to have the ability to
design elegant and effective financial solutions. The simplicity of these designs
is where the ultimate sophistication resides.

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Finance hackers use their tools to make the financial system work for them.
They find legal loopholes in the way the system works and then match those
loopholes with the right tool to benefit them financially.

Finance hackers make safety a priority. They measure, manage and mitigate
risk. Their solutions must be low risk, yet with higher paying yields.

A finance hacker makes safety a priority

Finance hackers are different than investors. Investors usually focus on assets.
For example, stock and real estate investors, as well as other investors, focus
on the specific assets in which they invest, and they tend to commit to that one
asset. Many investors don't recognize the importance of the underlying finance
structure, regardless of their asset choice

Here’s a simple comparison between a traditional investor and a finance

hacker.

Traditional Investor Finance Hacker

Focuses on making the financial

Chases returns
system push them forward

Focuses on tweaking
Focuses on the financing to make the
the asset mostly financial system’s strength and
size work for them

Focuses on purchasing assets Focuses on purchasing stable

with higher returns assets that can be encumbered

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Knows it’s a financing game,

Thinks/believes assets
and it’s the capital structure that
make them rich
makes them rich

Focuses on the bigger picture

Focuses on the assets and
of financing, which starts by
returns, and that’s all they see
“seeing” the Financial Matrix

Focuses on tweaking the

Focuses on accumulating more system to employ financial
and more assets shortcuts to help them leap
forward.

Focuses on accumulation Focuses

of money on lifestyle

Finance hackers see the financial system (the Financial Matrix) the way it really
works, and design solutions to leverage the inner workings of the financial
system to achieve a specific result.

For example, an investor purchases a rental property and "sees" a physical

property with a tenant and rent. In their mind, they are in the landlord business.
They believe in maximizing leverage with as little money as possible.

Finance hackers see something very different. They see a number of things.
Here are a few:

• A “spread” between the interest rate on the mortgage and appreciation

rate, which indicates growth in net worth.

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• Another “spread” between an income stream and debt payments,

which indicates a way to generate an income stream.
• The use of strategic debt as a tool to make inflation transfer purchasing
power from the lender to them.
• The right amount of strategic debt against a given asset to manage
risk.
• How to measure, manage and mitigate the risk associated with the
investment.

They don’t consider themselves real estate investors. They want to always
“bend” the forces of the financial system to work for them by focusing on the
finance structure.

Finance hackers do not associate exclusively with any specific asset, but they
do focus on a few. They focus on the underlying capital structure to match the
inner workings of the financial system.

In the movie “The Matrix,” the people in the matrix see people, walls, and
buildings as they live their day to day lives. Neo sees how the matrix functions
(the green stuff and all the numbers). It is the same with finance hackers. They
see the Financial Matrix and how it functions while the investors see only the
buildings and the tenants.

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Finance hackers use the size and

strength of the financial system
to work for them, and not

against them. They do

so in the simplest and

most elegant ways.

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WHY “HACKING”?
Why do I use the term “hacker” and “hacking”?

In the mid-1980s, my dad bought my brothers and I our first computer, a Sinclair
ZX Spectrum. It was the coolest thing ever. He also purchased a book on how
to program the Sinclair ZX Spectrum. It happened to be an advanced book on
the most difficult way to program the computer; something called assembly
language.
FINANCE HACKER
Without knowing it, I was programming the STORY
computer using the most difficult language.
To me, it was normal. I had no idea there Becoming a Finance Hacker
were easier ways to do so. This language has changed the destiny of my
was fine to me. It forced me to know the family. It created a whole new
system so well. I had to know specifics way of thinking outside the box.
about the computer that only the hard-core
enthusiasts would. This opened a world of We have our children
exploration and stretching the capabilities involved, and it creates a great
background for teaching them
of the system that I would end up using for
about finance and the financial
the rest of my life. I would become a highly world we all live in today.
paid software developer paid to explore and
stretch the capabilities of operating systems Nowhere else is this
like Microsoft Windows and PC hardware. information taught to them. It’s
nice to know that all the hard
That’s what we call a hacker; someone work my husband and I have
who explores and stretches the capabilities done will be understood by our
of a system. And that defines the act of children and the legacy handed
down into capable hands.
hacking. It can be used for "good" or "bad,"
but "hacking" originally was always meant S.R.
to be used to describe the joy of exploring
and understanding the inner workings of a Livermore, CA
system.

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RFC1392, the Internet Users' Glossary, defines “hacker” as: “A person who
delights in having an intimate understanding of the internal workings of a
system, computers and computer networks in particular.”

Finance hackers are exactly that. They are the ones who enjoy the intellectual
challenge of creatively overcoming, or circumventing limitations of the financial
system. Finance hackers are the ones who study the inner workings of
financial systems with the intent of finding a way to elegantly make the system
ultimately work for them.

A finance hacker is one who enjoys the intellectual challenge of creatively

overcoming or circumventing limitations of the financial system.

It’s not uncommon for new finance hackers to pay off a large portion of their
personal debt in their first 12 months with just using one elegant strategy.
This debt would have taken them years to pay off if they continued to use the
traditional finance method.

These strategies are called "shortcuts," or "financial shortcuts."

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Finance hackers in three words:

Lifestyle

Knowledge

Design

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WHY IS THIS IMPORTANT?

As kids, we grow up with dreams about what our lives might look like when
we get older. We then go to school, sacrifice years of our lives in the pursuit
of that promise of a great life. Then we graduate, find a job, and it happens…
We realize after years in our careers we have worked hard most of our lives
and have very little to show for it. Our kids’ college will cost over $250,000 per
child! Retirement is coming up in a decade or two, and we don’t have enough
saved up!

Many people are only one disaster away from being completely wiped out
financially!

When we look for solutions, all we find is a massive maze of financial advice
“experts” all contradicting each other on how to reach “financial security.”

We decide to try and build wealth by investing… Just to find out it will take us
years to learn, implement and gain experience regarding any given asset!

That is why it is so important that you wake up to the truth and take the time
to explore and learn this very elegant, methodical and number-backed and
proven approach to your financial goals.

WHERE DO REAL ESTATE INVESTORS

MISS THE BOAT?
Every investment transaction has 3 main sides to it.

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CAPITAL: This is the capital used to purchase the asset. This could be a loan,
your capital, friends and family money, seller financing, and other creative
methods.

ASSET: This is the asset that is being purchased. It could be a rental property,
a tax lien, a stock, funding a loan, etc.

CAPITAL STRUCTURE: This is simply how an asset is financed. In simple

terms, this includes how much of the capital is debt and equity. Debt magnifies
the financial risk and is what gets many investors into trouble. Well-designed
capital structures, however, are built to manage financial risk while maximizing
return. This is where finance hackers excel. There is a very good reason
it is shown as the base of the triangle - because it is the foundation for all
investments.

Investors focus on purchasing assets. They focus mostly on the asset side.
Have you seen or heard of investors doing 100% debt financing to purchase
an asset? They just increased their financial risk significantly without knowing
why. That’s the effect of investors not knowing much about capital structures.
That’s a big problem waiting to happen that finance hackers understand.

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Consider driving for example. Depending on the road conditions, you need to
know how to drive and whether or not to use chains. When driving in snow,
you need to use chains. The same is true for investments. Finance hackers
recognize they need to use the right capital structure given the financial
system, while also recognizing what is going on in the economy.

Finance hackers focus mainly on the capital structure. They know that they
can manage most of the financial risk there and make the deal more profitable
by tweaking the capital structure. They know how to make the financial system
work for them through their capital structure. They know exactly what to do
if the economy starts tanking by controlling/adjusting the capital structure.
The right capital structure is called “Optimum Capital Structure.” That’s what
finance hackers do.

Finance Hackers know exactly what to do when the

economy starts tanking by controlling the capital structure

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Going back to the triangle, consider

this question. Why does it take so long
to purchase a property? Think about it. FINANCE HACKER
Most of the time is spent on the due STORY
diligence of the property (“Asset” side
of the triangle) and the time to obtain I had been investing in real estate
financing (“Capital” side). The “Capital for one year, still trying to find
Structure” side takes no more than an my footing. Did I want to flip,
hour to design, and for a good finance
buy and hold, lend, or all three?
hacker, less time.
Commercial, residential, mobile
home parks? I tried to do it all,
So, what if you could swap the property
for another asset that you can purchase and I was lost.
“off the shelf” (over the phone or by
point and click) where you can have Then I heard of this concept of
the whole transaction done in minutes? finance hacking from George,
How many of those can you do? That’s and everything changed. I dove
what a finance hacker does, they right in, implemented several of
understand the capital structure has the strategies, and relaxed. This
so much power, and if they design the new way of structuring capital has
result they want, they can use assets opened possibilities I didn't even
that meet certain characteristics. know existed. I'm not chasing
yields anymore; I'm creating
As I continued to discover this new them. My family is now in a better
paradigm, I started sharing it with financial position than ever before,
many colleagues. To my amazement, and my retirement is looking good!
many investors could relate more to
being finance hackers than real estate
Jesus Garcia
investors.
Computer Engineer
Most of them agreed they never could

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 HACKING FINANCE - A NEW PARADIGM

see themselves owning more than a few properties, and they had wondered
if subconsciously they were holding themselves back from owning more than
they did.

A real estate investor I met had purchased 21 properties at once, just to

lose them all because of badly structured capital, again something a finance
hacker would have known. Today, this “never again” real estate investor is a
finance hacker.

The joy of tweaking finance (implementing shortcuts) from the comfort of your
home to make the whole financial system work for you is exhilarating, and only
takes a couple of hours.

To my amazement, many investors could

relate more to being finance hackers
than real estate investors.

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 HACKING FINANCE - A NEW PARADIGM

Finance hackers choose lifestyle

over money. They seek a lifestyle
where their personal finance
system supports the experiences,
relationships, and social impact
that make them happy.

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 HACKING FINANCE - A NEW PARADIGM

A SHORTCUT
It was very difficult at first to explain these strategies. As I shared them with
more people, I started using the term “Shortcut.”

A shortcut is when you understand the specific way something works (e.g., the
financial system), and then you match it to a specific finance hacker-developed
tool for your benefit. That combination gives us a shortcut.

It is very important to remember these “shortcuts” work on legal loopholes in

the financial system. These loopholes represent opportunities. The right tool
combined with the loophole can become a shortcut to increase your financial
well-being. They can also be used to greatly enhance any investments you
might already be doing.

Everyone can benefit from these shortcuts.

You never have to call buyers, sellers, or sell anything. Most require no more
than 6 hours per month for maintenance and review and are usually done in
short 30-minute increments, and those can be done from the comfort of your
own home.

Combining the knowledge of a system’s inner workings with the right

tool to tweak it and make the system work better for you is how
we define a financial shortcut

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 HACKING FINANCE - A NEW PARADIGM

I will share with you here a few examples

FINANCE HACKER
from the many shortcuts already developed.
I must warn you; you will be wondering why STORY
on earth you never thought about these. You
know these shortcuts could have worked for I’ve owned businesses my
you if you had just spent some time thinking entire adult life. I’ve tried
about and developing them yourself. construction, transportation,
auto repair and sales, and
As a reminder, these are shortcuts that real estate to name a few.
anyone can use, legally, that can significantly
impact your financial well-being. In real estate, I tried rehabbing
and flipping, wholesaling,
EXAMPLE 1: PAYCHECK FLOAT and land lording. All I
accomplished was a heart
Most people deposit their paychecks in attack and other health issues
a regular checking account in their local which caused me to lose it all.
bank, and over a few weeks (3 weeks in our
example), pay their bills. That means for 3 After attending the "Hacking
weeks every month, the money is sitting, the Financial Matrix," it all
doing nothing but waiting to pay bills. Over came together. It made
a 40-year span, that means your money is
perfect sense. The
doing nothing but waiting to pay bills for 30
information George was
years!
sharing was so amazing,
and I couldn't get enough.
Who do you think makes money off the “float”
of your money just sitting idle? Obviously, it
Thank you, George, you
is the bank.
are an amazing individual.
That’s how the system works in this case. A
finance hacker then wonders, how can we R.K. Nelson
turn that to work for us instead of against President of Board of
us? Directors for a credit union

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 HACKING FINANCE - A NEW PARADIGM

What if you could use that time frame to

make that float work for you, what would the FINANCE HACKER
effect be? Simple. You would pay off your STORY
debts in 1/3 the time, and possibly increase
your net-worth by 6-figures over time, all “...and got rid of over $50,000
with a simple tweak in your local bank, done
in bad debt within less than a
one time!
year…”
Snippet from featured "Finance
Without this simple tweak, you will lose
Hacker Story" at the end of the
upwards of 6-figures (over time) to the
book.
banks if not implemented! In fact, most
people reading this are on the losing side of
that as they read this!

That’s what finance hackers do. They make that loophole in the system work
for them. We call this shortcut a “Master Sweep Account.”

As I said, this is just one of the many shortcuts.

Keep going.

EXAMPLE 2: DOUBLE-DIGIT RETURNS IN YOUR LOCAL BANK

A well-known and respected wealth manager with over 20-years’ experience

as well as a radio personality from San Diego (who is known for his skepticism
about financial strategies) was blown away by this strategy. I will share with
you a little later what he calculated the return (internal rate of return) to be.

Did you realize that you can use your local bank account to mimic what
the bank does with your money, and generate double-digit returns, without
investing, and this loophole was discovered 200 years ago by someone that
Forbes Magazine called “Founding Father of International Finance”?

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 HACKING FINANCE - A NEW PARADIGM

This wealth manager calculated the internal rate of return (IRR) to be between
18%-35% after doing this for 3 years, and YOU get to choose the risk scale!

All you need is a checking account in your local bank and the knowledge!

Again, understanding how to turn something that works for the system to work
for us.

EXAMPLE 3: MITT ROMEY 14.1% EFFECTIVE TAX RATE

Did you realize that Mitt Romney legally paid 14.1% effective tax rate in 2011?
This is a lower effective tax rate than most Americans, and most people can
use one of his genius shortcuts to generate tax-free “passive income” if they
simply knew it?

Again, these are just a few examples from the many that are available to
benefit your financial well-being!

Anyone can use these simple-to-implement shortcuts and place them on

autopilot to continue to work for them.

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 HACKING FINANCE - A NEW PARADIGM

A Finance Hacker’s way of thinking is

more in line with the Steve Jobs’

elegant design,

simple and effective

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 HACKING FINANCE - A NEW PARADIGM

EXPLORE FINANCE HACKING

It’s sad that most people lead lives of hard work, laboring most of their adult
lives, giving up one of the most important assets – their time, for others, and
end up with little to nothing to show for it!

They are stuck in the Financial Matrix!

With this book, I hope to open your eyes to the fact that there is an alternative
way of looking at your personal finances.

There is a “red pill.”

Our company, FYNANC (pronounced “finance”) is out to build the largest

and most supportive community of finance hackers. As a community and
a movement to explore “hacking finance,” we want to continue looking for,
finding, researching and then documenting many more shortcuts and tools.
Once researched and documented, these shortcuts and tools will be stored
in what we believe will be the largest online knowledge vault of its kind and
available for all our members to learn from for their benefit.

Our company, FYNANC (pronounced “finance”) is out to build the

largest and most supportive community of finance hackers

Our members have access to the finance hackers’ tools in our vault along
with instructions on how and when to use them. We call these instructions
“building blocks.” We also provide our members with “knowledge blocks,”
which contain powerful information to expand and enhance their knowledge
as finance hackers.

Our members recognize that just one powerful building block implemented
and placed on autopilot will pay for their annual membership, quite often in
the first month! In addition, with all their other building blocks, taught shortcuts

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 HACKING FINANCE - A NEW PARADIGM

implemented and running on autopilot, they are continuing to move forward

toward their financial finish line.

As a community of finance hackers, FYNANC plans to continue to discover,

document, expose and implement new, but now hidden, areas in this new
paradigm.

I invite you to join our community.

We need your contribution.

Become a part of the FYNANC community and build and grow along with
us. We are a group of finance hackers developing and using finance system
tweaks to benefit both our current members as well as future generations.

Use this link to discover a whole new paradigm. One that you knew was there
but just couldn’t put a label to it.

Now you know…...it’s called HACKING FINANCE.

Start Here:

www.HackingFinanceBook.com/ebook
www.HACKINGFINANCEBOOK.com

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 HACKING FINANCE - A NEW PARADIGM

FINANCE HACKER STORY

When my husband walked out of our nearly 20-year marriage and

declared to the judge, honestly, but nonchalantly that “yes,” he’ll be

worse off financially than I will be [from the divorce], an angry fire

started brewing in my belly, alongside fear and hurt. I had 3 kids under

10 years old to feed, clothe, educate, and raise. But how was I going

to accomplish this after having been out of the workforce for over a

decade? As a stay-at-home mom with pre-Internet work skills and

contacts, I knew the published statistics. They foretold a long decline

into poverty in my future; most caregivers who exit the workforce never

make up their lost income trajectory.

I worried endlessly about making ends meet. And as that worry grew,
I knew I was also becoming emotionally unavailable to my kids, never

quite living in the present with them, when the worry would overwhelm

me.

Meeting George and the Fynanc Team has changed my life. No

hyperbole – it’s just the unvarnished truth. Becoming a Finance Hacker

has given me the knowledge, abilities, and confidence to know that I will

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be able to raise my young children to adulthood well, both emotionally

and materially. It’s also given me a chance to dream again of cozy

family adventures and experiences, unhampered by financial stress.

Now, that to me, is priceless.

J.S.

Former Stay-At-Home Mom

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FINANCE HACKER STORY

I’ve always been convinced that there had to be a better way of building

wealth than what many gurus teach us. In fact, I’ve come to realize

that many of the teachings out there only teach us a new job, and not

how to build wealth and achieve financial freedom. I began a quest to

discover the secrets of the wealthy; I tried several programs and gurus

and never really got any satisfying answer… until I found the Fynanc

team, then I stopped searching.

The teachings from the team have definitely answered many of the

questions I have had about finances and revealed THE pathway to

true financial peace of mind. I have implemented the Master Sweep

Account and got rid of over $50,000 in bad debt within less than a
year. This could have taken me over 5 years to pay off had I used the

traditional method of debt payment. The peace of mind that comes with

paying off bad debt alone is priceless.

I have also implemented one of the hacks that would enable my

husband and I to comfortably retire even if our traditional retirement

accounts plummeted to zero on the day we are supposed to retire.

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That, in my book, is true peace of mind.

My husband and I are also well on our way to implementing other

hacks that will provide generational wealth to our children and future

generations. This is very important to me, considering that my husband

and I are both first generation immigrants and I would like to make the

most of the opportunity we have here in the United States to start our

offspring on a more solid footing, and eventually teach others as well.

The teachings from FYNANC are truly life-changing.

Essi Kwabi

Petrophysicist

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FINANCE HACKER STORY

I was raised in the Midwest in a large family where my parents struggled

to even live paycheck to paycheck. I grew up in complete sacristy and

started working when I was in 6th grade. I told myself that I was never

going to live like that ever again.

I moved to California shortly after I graduated high school with $200

to my name. A few years ago, I became a Realtor and found myself

working with investors. The funny thing was, I would never invest

myself. I was scared to death of investing!

I worked my butt off to make my money, and there was no way I was
going to lose it because of an investment gone wrong! I thought that

saving my money was the best thing I could do.

Then I was introduced to a NEW PARADIGM called "Hacking Finance"...

my first thought was "What? yeah no... finance is difficult, and I'm

definitely not an investor!" My next thought was, "be open-minded,

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you have nothing to lose, just check it out." AND I am so glad that I

did. "Hacking Finance" completely changed my life! I quickly realized

that I was moving backwards by doing the things I was doing and by

being a saver. Hacking finance is NOT about investing (however, if you

are an investor, this will definitely take you to a level that you couldn't

even imagine!). I learned how to create wealth (without investing) by

doing simple tweaks to the things I was already using in my everyday

life. Talk about an eye-opener! It's so simple; EVERYONE should be

doing this!!!

Hacking Finance is a true game changer!

Reda Beebe

Realtor

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TERMS
FINANCIAL MATRIX: This is the construct within which all financial systems
and the economy function. It includes all financial transactions, and all
exchanges of money between investors, lenders, and borrowers. It is
influenced by "forces" that it defines; including inflation and laws regarding
debt and taxes. It may appear to be a conspiracy and may even appear to
work against you. Unfortunately, it is not a conspiracy “theory;” it is actually
how the system works.

LOOPHOLE: A loophole is a component piece of the way a financial system

works. Once identified, it can legally be used to the advantage of anyone who
finds it. Loopholes are opportunities available to everyone, and they represent
tremendous opportunities. For example, inflation can be made to work to your
advantage if you know how to use it.

FINANCIAL TOOL (“Tool”): A financial tool is a financial strategy that can be

used for a specific purpose. Examples include compounding growth, lowering
effective interest on a loan, strategic debt, etc. A finance hacker has a toolbelt
of finance-hacker developed financial tools that can be used with various
loopholes in the system.

FINANCIAL SHORTCUT (“Shortcut” or “Hack”): A shortcut or hack is the

result of (1) using the right financial tool to (2) legally take advantage a loophole
in the system to work for your benefit. Shortcut = Loophole + Tool

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HACKING FINANCE (“Hacking”): This is the act of finding the financial

shortcuts. This includes finding loopholes, then finding or creating the
appropriate financial tools to make the loopholes work for the finance hacker.
BUILDING BLOCKS: This is the term used in FYNANC ACADEMY Community
to represent the instructions to learn about and implement financial shortcuts.

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ABOUT US

We’re a think tank of financial nerds

who love to find and share financial shortcuts

FYNANC BRAND PROMISE

You will create financial happiness.
A lifestyle where your
personal finance system supports the
experiences, relationships, and impact
that make you happy.

MEASURED BY…
Does my financial path support the relationships
and experiences that give me life?
Does my financial path give me the
confidence to choose how I spend my time?

We invite you to join our community.

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