What if Conventional Money Teaching is Training us to be the 3rd Servant?
What if Conventional Money Teaching is Training us to be the 3rd Servant?
I’m not going to point the same content on multiple blogs and social media sites – but right now is a time of transition. God is working in powerful ways in and through my life so there’s a lot to share. My latest blog post and newsletter through Financial Grace introduces what’s been happening and what’s breaking through!!
You can read it here and make sure you sign up to get all the revelations and inspirations to apply to your own life!!
If you could gain instant credibility in your market and have an automatic referral generating process to bring in more than 10 new clients a month from qualified prospects, ready to act on your advice, how much would this be worth to you?
Sadly, most advisors, coaches, consultants and counsellor-types I’ve spoken to aren’t able to answer that question. They want more money, but don’t know the value of their activities or even how to begin to calculate what return on investment for their business. They also don’t have systems in place to handle an increase in business and because they’re missing this key information, they spin their wheels doing everything by themselves in order to pick up any kind of business they can.
All these marketing initiatives are time consuming and require specialized expertise. Many people spend a lot of time and money to learn how to do some of these things themselves and end up with minimal results.
A tremendous amount of your day is spent doing marketing, service and compliance tasks that don’t make you money but are still necessary. Financial regulations are squeezing income; and re-inventing the wheel or doing what everyone else is doing only adds to the stress and unproductive activities.
If you want to double your client-base in 30 days, you need to be able to leverage your activities which means you need to know where and how to focus and systematize what you do on a day-to-day basis. Sounds logical enough, but if you’re trying to do it all, this can take years…unless you can recycle, reproduce, rebrand, and reuse something that already exists to plug into a system that produces an immediate ROI in your business.
By immediate, I mean within 30 – 90 days. How? By unlocking hidden opportunities within something that’s already produced; a renovation of sorts to position yourself in your market as an expert, above the crowd of financial professionals competing for clients so the right people will find you and you’ll be able to support them.
If you want to help people navigate the increasingly complex world of money, you must establish credibility and have systems to acquire and service your clients efficiently. In today’s marketplace this can be a costly, time-consuming, regulatory maze on your own.
It took me 3 decades to learn and build what I’d like to share with financial professionals who know what I’m talking about and aren’t afraid to invest in their business. The secrets I learned through ridiculous hard work and hundreds of thousands of dollars, can help someone from sabotaging their business with wasted time and effort. I know from personal experience that doing everything on your own is time-consuming, tedious and not very effective. I also know that leveraging other people’s time, money and expertise can be very profitable, but only if you know what your objective is because it’s way too easy to get side-tracked and spend money without seeing a positive return in a reasonable amount of time.
If you’re someone who has a clear vision and wants to move your business forward and increase your income in the next 30 days the fastest way to do that is to follow something that others have done successfully in the past, but to personalize it for your unique situations, goals, purpose, and vision; you’re repurposing what has worked for someone in the past.
If you’d like to double your business without doubling your effort and sacrificing time away from what you love, then let me know and we can discuss a simple, unique, timely and valuable asset you can repurpose for your own business to get results beyond want you can currently envision. Send me a message and I’ll look forawrd to sharing more with you then.
Sam Piercy, CFP / email@example.com
May 25, 2017
You alone are worthy. You alone are the creator and maker of all Heaven and earth. Your name is above all and in all. Your plans are good; they bring prosperity, blessings and abundance to your people that all will praise your name and all will know that you are God and you are good!
You have given me (us) so much and I am thankful for those things where I can see your hand at work in my life. I live in a beautiful part of the world and for so many years you have provided even when I was trying to do things on my own. Lord God, I know that for too long I have tried to control the circumstances of my life. Particularly as it relates to money. Somewhere along the way I have believed that I needed to work had and manage what I earned. I somewhere along the way believed that if I could learn the secrets to wealth that all my dreams would come true. Yet, I didn’t even know what my dreams really were; they became clouded by the images and ideas of people around me and what I saw and thought I ‘should’ have in order to be accepted and loved. I believed ‘if only I could be, do, have more’ then I would be happy; then I would truly live.
The result of course has been death. Death of dreams, loss of loved ones, loss of peace, joy and love; loss of money and precious time. Your word says that you will restore that which has been stolen, even when I was the one who let the enemy in to steal the treasure; treasures beyond money. Lord God, I am so sorry. My words see hollow for the enormity of the losses that have resulted in my own pride and attempts to be self-sufficient’.
You have good plans for my life as you do for everyone’s life, and I willingly chose to partner with the devil who has been trying to rob, steal and destroy those good plans for me and all your people. For as long as I can remember a nice home filled with family and friends and joyful, peaceful activities has been a desire of my heart. Your word says that you will provide these things for your people – You will provide them, not my hard work or craftiness; not the bank or my ability to access and maneuver through the maze of credit. It is you who provides each of us the ability to produce wealth including a nice home.
As we struggled to control the financial reality after the devil tried to steal my dream of impacting nations with a message of financial abundance according to your plans and purposes, your hand led us to sell our home and live in temporary accommodations. These are lovely, but they aren’t home. Lord God, I (we) believe you have led us here by your mighty hand and you will deliver us to our promised land here on earth as it will be in heaven as well. Right now I don’t see how…so I give you this dream and these desires to bring forward in a way that is peaceful, joyful and honours your name.
I / we thank you for your continued and increasing income for our daily bread and I thank you that you have unlocked the resources in our heavenly bank accounts for the purchase of the home which you are leading us to now. I thank you for the release and forgiveness of all debts; financial and relational; that nothing will hinder the completion of the purchase of the promised land you have pre-selected and prepared for us to reside and carry on the good work you have prepared for us to do.
Lord God, in the name of Jesus, I declare and decree that there is more than enough to purchase, develop and maintain the home you have for us to live in today. I claim 1 Chronicles 28:20 as you revealed to our realtor in her devotions, over our life, over this purchase and over every area of this transaction, over every square foot of this land, and over the vision for the ministry work to take place from this land. We claim blessing and honour to all who walk there today and who will walk there in the future. We thank you that your blood has cleansed and purified this land and that your ministering angels are preparing all the details for us to take possession.
In the mighty name of Jesus, we stand against any attack of the enemy; all firey darts and any negative thoughts that attempt to sabotage your good plans. We ask Holy Spirit that you fill us to overflowing with your goodness, strength and wisdom; and that it is you who brings forward all the resources needed for an efficient, profitable transaction and move. We give you all these details to care for while we willingly carry out the tasks you set before us as your Servants.
Thank you, Lord. In your mighty name, Jesus I / we pray,
“Be strong and courageous, and do the work. Do not be afraid or discouraged, for the Lord God, my God, is with you. He will not fail you or forsake you until all the work for the service of the temple of the Lord is finished” (1 Chronicles 28:20).
The other day I was speaking with a client when what I thought was a small bird flew into the room. At closer inspection I realized it was the largest bumble bee I’d ever seen in my life. My client and I had been speaking about the new revenue stream she was adding to her business and how it was a little overwhelming when she considered all the details that had to be looked after in order to streamline her operations to make the whole business ‘fly’.
The bee reminded me of a story I’d heard about how bumble bees apparently aren’t supposed to be able to fly. Apparently in the 1930’s a story was circulated stating that according to the accepted theory of the day, bumblebees didn’t generate enough lift to fly. The story goes, that some scientific-type person did some calculations and claimed that it was aerodynamically impossible for bumble bees to fly. Obviously no one bothered to tell this to the bumble bee that has been happily flying around pollinating plants its whole life.
According to one website I looked at to make sure I had my bee facts straight, bees’ wings are abnormally small relative to their bodies and someone had made a faulty analogy between bumble bees and conventional aircraft. If an airplane were built the same way as a bumble bee, it would never get off the ground. But bees aren’t like airplanes, they’re like helicopters. Their wings work on the same principle as helicopter blades… A moving airfoil, whether it’s a helicopter blade or a bee wing, generates a lot more lift than a stationary one. The real challenge with bees wasn’t figuring out the aerodynamics but the mechanics: specifically, how bees can move their wings so fast-roughly 200 beats per second, which is 10 or 20 times the firing rate of the nervous system. The trick apparently is that the bee’s wing muscles don’t expand and contract so much as vibrate, like a rubber band. A nerve impulse comes along and twangs the muscle, much as you might pluck a guitar string, and it vibrates the wing up and down a few times until the next impulse comes along. (http://www.straightdope.com/columns/read/1076/is-it-aerodynamically-impossible-for-bumblebees-to-fly August 12, 2013)
The point to all the bee wing facts is that as I was discussing the financial implications of the new business model with my client, the giant bumble bee flew into our skylight and was buzzing around trying to reach for the sky. Every attempt to fly through to freedom got him no closer to his destination and was in fact just wearing him out. If I left him long enough I’m quite certain I’d have found him on the floor sometime the next day.
He was such an unusually large bee that I decided his mission could use a little help. I put my client on hold and went to retrieve a butterfly net we keep on hand for various household bug catching adventures. With one swoop, I scooped up the bee and let him outside where he could fly to freedom and carry on his worthwhile business of pollinating plants.
The bumble bee story provides a great analogy for financial situations. The first is in how the bumble bee fly’s in the first place: if you look at its physical circumstances many people could easily justify telling the bee that his situation was hopeless; that he should give up on the idea of flying and to be content crawling around the ground like other insects such as ants or spiders. Happily for the bee, it took a different approach and modified its situation so it could carry on with the work it wanted to and was supposed to do.
The second situation of getting stuck in the skylight could have been catastrophic for this bee because he was so focused on the big picture that he forgot a couple critical steps. These steps are also critical financial steps. One is that there might be more ways to reach for the sky, than there first appears. Opportunities of a lifetime come around everyday when you start to become aware of them. And just because you have been successful overcoming obstacles in the past doesn’t mean you’re always going to be better off self-sufficient. Another is that sometimes you can benefit from an outside source to provide you some direction. Too often with finance people are so afraid to share their situation with others that they become self-centered and will continue to beat their head against the ‘skylight’ thinking the next attempt will provide them with their freedom. There is a lot to be said for stopping, waiting, asking, and sharing. I was able to assist the bumble bee because he finally stopped and rested on the wall near the edge of the skylight. I saw his plight, and was happy to help him. Plus, I’m sure he was happy I came along so the situation created a win / win for both of us!
When you’re looking for financial results and finding yourself up against the same closed window all the time, perhaps the best thing is to consider the bumble bee and shift your perspective, slow down and wait for your personal version of the ‘butterfly net’.
In order for goals to be achieved they have to be able to be measured. When you set a fitness goal, for example, you wouldn’t say, “I want to be in better shape” because the term ‘better’ is subjective and not measurable. Instead you would say something like, “my goal is to weigh xx pounds, with xx percent body fat, and be able to run xx distance in xx time or less by xx date. When you fill in the ‘xx’s’ you have something concrete and measurable to work towards and a way of keeping score. If by the date you set, those specific targets have been met, then you will have reached your goal to be in better shape. This works because you determine what the ‘rules of the game’ are and how the game is won. This means that you will also be the one who will keep score during the time between setting the goal and the date you determine the game to be over.
Once you fill in any one of the measurable results that will ultimately determine whether you have reached your initial subjective goal of being in better shape, you start creating the foundation which will help you build towards the realization of your goal. Your initial idea starts to take shape as you get more specific on what the concept of ‘getting into shape’ actually looks like.
This is exactly what happens with money. The initial idea for most people is that they want to be able to live a life unencumbered by money. They don’t want to be inhibited in any way because of a lack of money to follow through on their desires. In actual fact, what they’re saying is that they don’t want to be limited in any way because of a ‘perceived’ lack of money. I say ‘perceived’ because until you know exactly how much money you’re looking for and when you require it by, the overall concept of more money starts will continue as a subjective idea.
Typically what people are after with this subjective concept of ‘more money’ is a sense of financial freedom. Financial freedom will be very different for everyone though. This is why it’s so important to start determining in dollars and cents what the criteria are for measuring what financial freedom is for you. My dollar figure will be different than your dollar figure because we have different values, beliefs, goals, and life circumstances. The strategy of measuring the different aspects of your goal is the same for everyone because this is how you determine what the rules of your game and how you play the game (the activities and income creating strategies you’ll apply), ultimately how you keep score and whether you win or keep playing.
In finance, the ultimate goal is financial independence, not just financial freedom. Financial freedom can actually be experienced at any time regardless of your financial circumstances because it’s essentially a state of mind. Financial independence, on the other hand, is specific and measurable because it’s the situation where your passive income exceeds the amount of your monthly expenses.
Passive income is of course, different than active income. With active income you are using your time in order to generate income to support your lifestyle. As you plan and implement your financial plans your objective in ‘playing the financial game’ is to use your active income to create assets which create passive income which enable you to create more assets which create more passive income etc. Passive income with eventually be generated from your assets in an amount that exceeds your lifestyle expenses.
This means that you have to know what your monthly expenses will be when you’re not actively earning income. The concept means you start by understanding exactly how much money you’re going to spend each month. This is not a subjective concept about living a sort of ‘magazine; lifestyle. How much exactly will it take for you to live whatever income you truly see living for yourself. In order to establish this you’ll have to do some research and develop some skills in order to be able to take a capital expense (a purchase such as a house or furnishings or car or clothing, etc) and turn it into a monthly income figure. When you do this you are now thinking financially, rather than subjectively or with simple math.
Financial math includes the factor of time. Simple math on the other hand, is not as dynamic and tends to involve only basic formulas for addition, subtraction, multiplication and division and percentages. The missing component necessary to take you subjective idea and be able to turn it into something that is measurable and manageable is time. This means that if you are starting today and you have defined the monthly passive income objective specifically, then you have to know ‘when’ you plan to have that income in order to discover and implement appropriate activities necessary to ‘win the game’.
In fitness sometimes there are calendar dates which assist in setting goals. Often these are personal such as birthdays, anniversaries, or special events. In fitness, if you plan to attend an organized event then dates are pre-determined. You just have to make sure you allow a reasonable amount of time for training. Without a specific date you might still get in better shape, but your activities are less likely to be as focused so reaching your target can happen whenever.
Because setting goals creates a gap between where you are and where you want be, this is why people find it easier to simply talk about goals from a subjective perspective if at all. Then if they do start to test the waters of goal setting they are cautious to make sure that what they’re doing is ‘realistic’. What this means is they’re afraid of being disappointed so they attempt to reduce the size of the goal to make it seem more likely. This can be a good strategy, however, it can also be limiting.
In my experience, the concept of setting a dollar goal is significant enough to cause stress enough that people don’t bother following through, so the idea of putting a date on their goal which provides the key to the overall strategy and therefore overall success is simply ignored or treated with the same subjective manner as the initial concept of ‘more money’ and ‘financial freedom’.
So how do you determine an appropriate date for the realization of your financial goals? The ‘easy way’ and ‘quick fix’ with a lump sum of money isn’t the answer since you’re looking for measurable activities you can do in order to create assets which create income – not windfalls. If along the way you happen to receive a windfall then consider it a bonus point. Your primary focus is to us your skills and expertise and all your resources in order to create passive income in an amount necessary to pay for your personal lifestyle expenses.
The following are some specific questions you can ask yourself to help you determine when your ideal monthly passive income budget will be reached:
1. Are there any life events that make a transition in your life such as getting married, having kids, kid graduating from school, turning 30, 40, 50, 60, 70, etc…
2. Are there any significant priorities or causes that need your time that you’re not able to devote the time you’d like to today because of financial constraints? How important are these issues to you? It’s one thing to say that something is really important to you and another thing entirely to be confident enough to follow through with the necessary activities. How much time on a daily, weekly, or monthly basis do you have to commit to implementing a strategy to create passive income for yourself without it interfering with your current priorities?
3. Is there anything in your life today that could create an obstacle to change that has to be dealt with first? Examples could be work or family commitments that have to be streamlined in order for you to have some more time and energy before being able to invest a significant amount of time into developing anything new. If there is then when will you be able to make the change to create the time and space to develop new projects and systems? Or, what has to happen before you will be able to dedicate any significant time towards anything new?
4. Are these ‘real obstacles’ or are they feelings of obligation or something you would feel guilty if you didn’t do?
5. Is there some amount of time in your schedule that you could devote to something different, but you’re hesitant because you’re afraid of not following through even with a little bit of energy directed towards change?
6. If you knew for certain that your income plans would succeed exactly as expected, and all you had to do was come up with the plan, then what date would you set for your goal to be realized?
7. Can your plans be multiplied? For example, if you would like to achieve the $5000 in passive monthly income in 2 years instead of 10, then could you identify an income producing project that provided you with the initial $100 then duplicate then seek to duplicate that effort through multiplication? For example, If you were able to set up a system to create recurring orders for a product you were marketing, could you do this for 5 products within that year? Or, what if you developed a strategy to invest in positive cash flow producing real estate and each property provided you with $100 per month in positive cash flow. If you wanted to accelerate your results, then your question would be, ‘how can you duplicate your effort’? The simple answer to the real estate example could be to purchase multi-unit buildings.
There are certainly other possibilities, the point is that it is the combination of all these personal things that come together to determine your plan: values, priorities, causes, desires, interests, money goal and TIME to fund your desired lifestyle. The plan and activities to bring it into reality is developed based on all these criteria.
The significant information that you need first is what your monthly income target is and what is the date you intend to have accomplished your goal? These 2 pieces of information are required before you can select the activities, not the other way around. Sorry, it just isn’t as effective. Our job is to do what we can with our goals set in stone and the plans in sand. This way, quite honestly, you have set up a foundation to connect God, money and real life so God can do what you can’t. It all just takes a shift in thinking, and certainly requires a commitment, to follow through regardless of delays, disappointments and uncertainties. But ultimately it’s your life. If you’re not willing to commit to following through, then that’s ok: just make sure you recognize that you’re playing a different game and don’t ‘try’ to win a game you’re not prepared to fully play. You don’t have to have all the specific plans mapped out as long as you know how the game is won; in finance that means the time and the money. The rest will fall into place as you pursue the activities taking you in that direction.
PS – There is also an expanded version of this article in the MoneyMinding mVillage online resource. You can access this resource by registering for access to mVillage here.
(c) 2013 Tracy Piercy, CFP. If you like this information and are interested in reprint information for your business please call me at 250-592-0457 (pacific)
I’m looking for a technically inclined person in Victoria who is interested in an interesting opportunity to enhance their ecommerce and online marketing skills. Some of the varied tasks include working WordPress, Premium Web Cart, social media, video and audio editing, email broadcasting, online client and content management, and more. This opportunity will be of particular interest to a Christian believer as the primary audience is through the church. I’m also not interested in corporate contracts, rather I’d like to work with someone interested in personal finance and who is passionate about learning and making a difference. If you know anyone or are interested yourself please contact me at 250-592-0457. Thank you.
Have you ever started a project then found out you were missing a key piece of information, a required tool, or important ingredient? Typically when you set out to build something you organize your plans, set aside the time, gather your materials and with eager anticipation you begin. I’m sure we’ve all experienced that sinking feeling when you reach for something you’re sure you have, or that you know was working a minute ago – and – at the moment you’re ready to move forward – nothing. It won’t start, it’s missing, it just can’t be found.
Financially, this situation can occur in many ways, often when you’re looking for a receipt to return something to the store or at tax time. It might also show up when you’re sure you transferred money, paid a bill or sent a notice to change something in your financial portfolio, and based on your belief that that transaction had been completed, you set out to do something else only to discover that there wasn’t sufficient funds, or the bill didn’t get paid and you were charged fees, or your transaction wasn’t completed.
Whatever the situation is, the result is lost time, lost money, lost opportunity and stress. Unfortunately, these situations occur regularly and because our lives are bombarded with increasing amounts of information and ‘to do’s’ the day-to-day stress of handling even basic financial transactions can leave you overwhelmed, exhausted and intimidated to take on anything different.
Think about it: finding someone to talk to, making an appointment, completing the paperwork, filing the paperwork, getting set up to access, monitor and track the new account, strategy, or system, making sure there is proper paper and electronic bookkeeping for tax purposes, passwords, yearly accounting, perhaps record keeping for estate purposes, plus ongoing marketing information that comes in the statements and by email, and making sure you have proper security because it seems that someone, somehow will find a way to try to defraud you of your identity and your money. All this and that doesn’t include the overwhelming volume of choices to make in the first place
Let me tell you a story before you jump to conclusions that this message is just going to be another one of those pieces of information strategically designed to add to your stress, or full of empty promises.
A few weeks ago the newly launched MoneyMinding Foundation finally has its online programs ready to go live. Maybe you were one of the people who got excited about our mVillage and Project M home study program. Well, it turns out we (and about a dozen other companies) fell through a ‘corporate crack’ with 2 of the companies who were key ‘ingredients’ to our launch suddenly not supporting each other. We are a start up non-profit so didn’t have a lot of options except to find other solutions. Unfortunately those solutions don’t happen over night. This means our program launch has been more or less ‘on hold’ while we respond to your questions by email and phone and set up new systems.
All this is an important principle that has been put into practice during these past few weeks. That principle involves both thinking and doing. Actually, it’s more accurate to say it involves ‘not thinking’, and doing because of the significant connection between our thoughts and our actions which ultimately determine our outcome. This is likely not new information for anyone reading today, but perhaps the concept of ‘not thinking’ might be.
Our situation occurred after plans and strategies and resources were put in place and tested. This is different, than jumping out of the gate before preparing. Sometimes moving forward happens before all the specific plans and strategies are in place and that is part of the overall plan. Sometimes certain pieces are required and you will put a lot of time and energy and money into getting them ready before you move forward. Having a plan and rolling it out, to come up against an unexpected ‘curve ball’ is one thing. Not having a plan or strategy and jumping ahead and running into unexpected challenges is another thing. The latter situation will likely require you to go back to planning and strategizing. The former requires faith, patience and perseverance.
When you’re hit with a ‘curve ball’ in your plans, especially when you’re already cramming a lot of activity into a short period of time and you have expectations for a certain result to happen a certain way, at a certain time, your stress response is triggered by your thoughts being upset at the unexpected ‘problem’ that has to be resolved. The natural instinct is to immediately turn our thoughts towards finding a solution. When this happens it creates a distraction from all the enthusiasm, peace, hope, and enjoyment that the original plan or activity held.
This diversion away from the excitement will unfortunately create a pattern of thought that determines a pattern of behaviour and ultimately the results we experience. The original positive experience has now been turned into a problem solving process where we are taken out of the good while you work to regain control of the situation. The problem with problem solving like this is that ultimately you are constantly thinking while under stress which means that the solutions you come up with will be influenced by your need to remove the stress and regain control, not necessarily to achieve the original outcome.
Back to my story: our situation had obvious financial consequences in terms of time and money. The immediate response is to ‘solve the problem fast’. However, that thought process led to a full array of possibilities each with a variety of consequences and outcomes. This in turn led to overwhelm, which led to a state best described as analysis paralysis. I’m sure you know what I mean: too many options, not enough time, big consequences of making a “wrong” choice.
The answer ultimately is to STOP, breathe, pray, write, and wait, yet keep moving. The ultimate solution is to do what you can, when you can, with what you can – essentially to stop thinking, yet keep doing. Because the process of pushing through and searching endlessly for a ‘quick fix’ to get you back on track to get the results means you’re reinforcing thought patterns that ultimately are not conducive to experiencing those results we’re all looking for – financial or otherwise.
With all this actually still going on in the life of The MoneyMinding Foundation, I thought it valuable to share the situation with you. This is a real life situation that will show up in one way or another for all of us that can easily send us into a downward spiral of stress and keep us stuck if we don’t STOP the cycle of trying to control all the circumstances instead of staying calm and staying the course.
Nobody likes to talk about money except financial professionals who do it for a living. Even then they will talk with their clients about their money, and they’ll discuss the markets and different money strategies, but they will rarely discuss their own finances.
Money is a extremely personal and intimidating subject regardless of whether you have millions or minimums. Because of this everyone is left to make up their own rules through trial and error and ad hoc learning. (or maybe this is why it’s so intimidating, but that’s a chicken and egg story to explore later).
The ‘shoulds’ and ‘should nots’ about how to manage money are adopted over time and become our beliefs from which we make our money decisions. But are these beliefs really serving us? The problem is that once you have a belief about money you will hold onto it and are unlikely to question that underlying belief. This means that you’ll make your financial decisions in line with your core beliefs – which have been adopted over time by ad hoc learning and trial and error – and may or may not be serving you.
A great example of this is the commonly expressed idea that all you have to do is ‘live within your means’. Or said another way, ‘all you have to do is ‘spend less than you earn’. But a subtle shift in perspective will accomplish the same thing in a way that actually increases your capacity with money, rather than reinforcing fear, scarcity and dependency. This shift is ‘all you have to do is earn more than you spend’.
It’s only when you are faced with a significant financial situation that you’re likely even be open to new ideas that challenge your beliefs. But, given the current economic climate it seems that people who have been intimidated to ask questions or to look at alternative views to solve their money issues are going to have to shift their beliefs quickly if they’re going to be able to navigate the changes on the horizon.
As we start the New Year, here are a two key financial areas that will challenge the conventional view of money. These concepts are necessary to help create a paradigm shift in your thinking which will ultimately affect your plans and your results:
1. Debt. ‘Get out of debt’ teaching will sabotage our society; plus reinforce scarcity, inferiority and guilt. The reason anyone wants to get out of debt is to use their money more effectively and ultimately so they have more money to spend and invest to create more wealth which creates more income which gives them more money to spend and so on and so on.
The goal is to have money to spend. And spending money fuels the economy which is good for everyone. This doesn’t mean that everyone should keep their unproductive debt or spend frivolously. It means that to do a complete debt evaluation and create a debt management system, you have to develop a strategy to manage the current situation, then create income to fuel your lifestyle, and finally find out how to use this powerful tool called credit effectively to enhance your wealth.
Re-write ‘get out of debt’ and substitute it with ‘earn more income to support my lifestyle’.
2. Retirement. The concept of retirement is almost impossible today. The idea of working then not working and living off your pension and your savings has only appeared to have worked for one generation throughout history: the generation immediately following World War II. It is virtually impossible to save enough to support your pre-working lifestyle in today’s economy. And even if you do manage to do it, you will spend your working life wondering if you’ve saved enough and if you’re getting a good enough return on your money. Then when you stop work you’ll be concerned with not losing what you have, or not having enough so that anyway you look at it, the concept of retirement in the conventional view is going to cause you to have financial stress.
The real plan is to become financially independent so you have enough income to support your lifestyle, whatever that might be. This may or may not come from savings and in all likelihood is best to come from several different sources.
Re-write ‘retirement’ as ‘financial independence’ and start learning about ways to earn sustainable income outside of your job.
The biggest challenge you will find is that the commonly accepted language and strategies will all revolve around these 2 primary, seemingly sound, financial activities. Financial professionals are trained to help their clients make investment and lending decisions and their products and services are primarily debt and investment products that are not about helping create sustainable income for life. They can help you with income products once you have some money, but the fuel for your entire financial plan as well as for your life requires you to be able to create income that will fuel your lifestyle without you having to work 40+ hours a week until you die. When you can take this approach your discussions with your financial advisors will open possibilities for different products and services and strategies where flexibility is important and rate of return is less important.
This means, that you will be a minority, but statistically speaking the minority is the group that ultimately has the wealth J Happy Writing!
PS – There’s a ‘makeover’ underway at MoneyMinding. Make sure you subscribe at www.moneyminding.com to get the new ‘Triumph Over Money’ report, and the be the first to hear about the MoneyMinding Makeover with mVillage special for only $10/month, or $100 a year!