What if your eye doctor gave you a pair of glasses with completely the wrong prescription?
Think how that would affect your life. You'd be constantly running into things. When driving (if that was even possible), you'd make terrible decisions by responding to the movement of fuzzy shadows. It would be extremely challenging.
Yet, just about every middle-income family is viewing (and operating) their financial lives through lenses that are totally wrong.
While the problem is significant - the prescription is off by a long shot - it boils down to two relatively simple issues: (1) Most people are using a a poor financial strategy because (2) they have accepted a Belief System about money that is wrong.
"Hope" is not a viable financial strategy ... but it is the only strategy being offered to the middle class. The most common phrase I hear from people (at least those who are not clients) is, "Things just aren't working out they way I hoped they would." Well, Duh! Hoping for something won't make it any more likely to happen.
Hope as a strategy creates unrealistic expectations which can only lead to dissappointment and a reduced quality of life. The next time someone tries to sell you "Hope" as a strategy, you should run away from that person as fast as you can. They are not thinking of your best interests.
The second issue is an even bigger reason why average people are falling further and further behind with their personal finances.
There is a belief system that being "middle class" or "average" means "barely getting by" no matter what. It comes with a general focus on what you don't have rather than what you DO already possess, especially when it comes to your finances.
It's natural and easy to adopt this belief system. We read in the paper almost daily about how the rich get richer and the poor get poorer. Headlines tout that the middle class is under seige. True, the politicians aren't helping and the super-wealthy have rigged the system to their own advantage (because they have the money and power to do so), but there is plenty of opportunity for regular folks like you and me to build wealth.
Each person DOES have complete control over how they manage and spend the money slipping through their fingers every day ... and that IS significant.
THE $2 MILLION MAN/WOMAN/PERSON
The average family income in America is $50,000 per year. Multiply that times 40 years of work (age 25 to age 65) and that amounts to $2 million - not exactly chump change. If you could manage even 1% of that money better, you're looking at an extra $20k ... and my work with clients with the Cash Flow Hydrant™ suggests that capturing 10% of that lifetime income is really quite easy. That's 200-large that is leaking out of your wallet to pay for stuff that doesn't matter to you at all.
Add in the power of compounding interest and that 10% ($200,000) can easily become something greater than a million dollars. Who wouldn't want an extra mil to play with when they retire?
GET PAST THE BLOCKADE
The main challenge with getting past this blockade is accepting that the belief system ("Nothing I can do makes any difference." "The game is stacked against me." "The middle class are doomed." "Hope is my only strategy.") is not serving you well at all. It means the lenses through which you are currently viewing your choices is screwed up.
It's time to try new lenses.
Getting past the blockade means accepting a new Belief System, one that focuses on the things over which you DO have control and accepts that if you pay attention - what my wife likes to call "being conscious" - and are intentional and strategic with your money, you will improve your quality of life and your family's financial future.
TRY NEW GLASSES
The average middle-class family is fighting against a two-pronged faulty belief system: (1) "Hope" is the only strategy available for average people (2) The tables are stacked against the average person from ever improving their financial situation.
This belief system is like looking at the world through glasses that completely have the wrong prescription and the results are terrible.
If I could get you to change one thing it is to get rid of this belief system. There ARE strategies out there that everyday people can use. You don't have to be rich to get access to them (another belief system that is wrong) and these strategies will deliver better results, greater wealth and a better quality of life than you are able to enjoy right now living paycheck to paycheck (or off credit cards).
We can help you prioritize your goals and scope your focus.
Learn more. Schedule a Free, no-obligation 20-minute consult today!
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