At The Wise Banker we believe that if you’re looking to get your financial game on point, it’s not about what you do but rather how you do it.
We believe in the idea that says, “I never want to feel limited because of money.” In the idea that also says, “I want to be a true financial steward, to build a wealth that is designed to last for generations.”
Unfortunately, it’s harder than a lot of people make it out to be. That’s likely because we compare everything we do in the financial world with what everyone else is doing – and we’re not all laying on a beach in Mexico with a drink in our hand.
What it comes down to is that nobody is more responsible for your financial success than you. You are in control of the decisions you make every day and when it comes to building wealth, there’s more to it than just making money.
Your ability to build and perpetuate wealth is very closely tied to the unique value that you have. The difference is that money is merely the measurement used to show the value of what you give.
With that in mind, understanding your unique value and the intentional direction you want your life and business to go, always comes first. Then knowing how to overcome the “human problems” becomes important since it impacts your ability to accomplish these goals and ultimately, your ability to build and perpetuate wealth.
Overcoming The Human Problems
There are 5 human problems that need to be overcome daily before getting your financial game on point.
1. Parkinsons Law
Again, it’s not about what you do but how you do it.
C. Northcote Parkinson determined the following ideas to be something that we as humans are likely to fall into.
– Work expands to meet the time envelop allowed ie. “We have lots of time. We’ll do that tomorrow!”
– A luxury once enjoyed soon becomes a necessity ie. “We need to have the latest smartphone because the last one is ancient!”
– Expenses rise to equal income ie. “Living a luxurious life is nice. We deserve it!”
If you can relate to any of these ideas, know that you’re not alone. Our tendency is to put off what is hard in life and to focus on what’s enjoyable first.
However, if you do the hard things early, if you have the discipline, and if you can think about what’s enjoyable 5,10, or 20 years down the road, you will no longer be comparing yourself with what everyone else is doing in the financial world.
2. Willie Suttons Law
Willie Sutton, a notorious bank robber in the US explains this next law best (hence the name).
Wherever wealth is accumulated, someone will try to steal it.
We’ve been conditioned to accumulate money to build wealth through Bay Street investments, commercial banking deposits, and other financial products. Unfortunately, there’s often a combination of risks, taxes, interest payments, and/or opportunity costs associated with these options.
With the odds are stacked against those with money, the question becomes: how can you overcome these odds and protect your hard-earned money from those who will try to take it away?
If you can answer this question, you will no longer be comparing yourself with what everyone else is doing in the financial world.
3. The Golden Rule
This isn’t the Golden Rule you might have learned while growing up.
It’s those with the gold make the rules.
There are of course, many financial strategies that are out there for building wealth. However, as Robert Kiyosaki says best: “It’s not about how much money you make, but about how much money you keep, and how hard that money works for you, and how many generations you keep it for.”
The human problem here is that there’s a large focus on net worth and on financial strategies that tie up capital, leaving us with little to no liquidity and money to use on the daily.
If you’re in a position of cash flow (or at least focusing on it) instead of focusing primarily on your net worth, you will no longer be comparing yourself with what everyone else is doing in the financial world.
4. The Arrival Syndrome
The arrival syndrome is perhaps the most problematic of the human problems. As Nelson Nash so kindly reminds us in his book, “Becoming Your Own Banker,” when the arrival syndrome is in effect, we stop growing, we stop learning, and we turn off the ability to be inspired because we already know everything.
If we know everything there is to know, there would be peace, health, wealth, and happiness and we would be the most successful people on the planet.
Chances are however, because we’re human, that this isn’t the case. So, overcoming the arrival syndrome then becomes paramount.
If you continue to keep your mind open to learning new or old ideas and adopting innovative practices for example, you will no longer be comparing yourself with what everyone else is doing in the financial world.
5. Use It or Lose It
You now have a choice to make. Are you going to take what you’ve learned and use it, or will you lose it?
Here is the final human problem that needs to be overcome when giving maximum value and getting your financial game on point.
It takes 21 days to form a habit so, to make sure that all five obstacles mentioned here are being overcome as a way of life, they should first be made into a habit.
If the human problems are being overcome daily, your ability to provide value, to accomplish your goals, and ultimately, to build and perpetuate wealth will be a cut above the rest of those in financial world.
Without overcoming the “human problems”, it’s likely you will continue comparing everything you do with what everyone else is doing.
It’s hard at first (think Parkinsons Law), but the more you overcome these problems, the easier it becomes to be a true financial steward, and to build a wealth that is designed to last for generations.