Your beliefs about money shape how you earn and spend it. The speaker explains why poverty and wealth repeat across generations, and why conflicting financial advice leaves people confused about what actually works.
There's so much information in circulation about what to do and not to do with money that it causes many people to get confused about their options. You hear one thing from one person, then an entirely different thing from someone else and none of it seems to make sense. After a while, we then gravitate towards the things we understand and what seems simple and and we disregard things we can't wrap our mind around or what may seem too difficult. What we end up with is a simplistic approach to money and one that is riddled with hoes and omissions. It's always interesting to me when I read an article or listen to someone share their opinion about a financial product or some cookie cutter approach to handling money. Because for me, someone who's actually working with real people, I know how flawed some of these ideas really are. I know that people will follow it. And the person giving their opinion is making money and growing their wealth and not by necessarily following the advice they are given, but by profiting from giving the advice. You have financial entertainers and product salespeople who are offering a one size fits all solution that many people follow and then later discover that perhaps they should have done something else to only have to begin the process all over again. If you've ever got caught up in a fad diet, you've experienced the hype of something that may have short term results, but over the longer term the majority wind up right back where they started. These programs simply don't work because at the root of it all, they are not addressing the problem. They are simply quick fixes and are often not sustainable long term. These types of things are a business and if you're not careful, you could take the bait of the sales pitch and wind up helping someone else fulfill their financial plan. It's why I've dedicated an entire segment of this series on the topic of mindset. So first things first, let me clarify what I mean by mindset. A mindset is a way of thinking. It's an opinion or a belief about something and how you think. And what you believe is not something you're just born with. Your mindset is formed by your experiences. It's your experiences in life as you grow up and your interaction with your parents. It's your experiences in school with friends, and it can even be from books and movies you watch. Everything that you experience creates a belief system. It's a mindset, it's an opinion. And anytime you have to make a decision, you draw from those beliefs and that's how those opinions are formulated. And. And so those drive your behavior. It drives your decisions. And of course, the behavior that you have and the decisions you make is what creates the results in your life. That is why the poor remain poor generation after generation, and why the rich go richer. You know what you know, and the tendency is to follow the example that's set before you. I don't want you to miss this. This could very well be one of the most important aspects of managing your money, because it's what's driving all of your money. Decision.
