Change the Way You Think
Nelson Nash, the man who coined the term Infinite Banking Concept, talks about 5 human problems, or psychological pitfalls, that we all must overcome in order to have a disciplined financial plan. Overcoming these pitfalls is paramount to not just surviving financially, but thriving.
The first human problem is what has been coined as Parkinson’s Law. This was coined from C. Northcote Parkinson’s book by the same name. This law can be summarized in three points.
The first point is, “Work expands to meet the time envelope allowed.” In the context of real estate, how often have you had one contractor on one job complete something in the 10 days they were allowed, and then when you give them the same job on another project but 30 days to finish, it took the full 30 days? Life is full of these kinds of examples - kids and homework - work deadlines – and basically anything else that has a deadline. What if we could master overcoming this trait in our lives, and get things done more efficiently, and consistently? What if our finances were working this way?
The second point is, “A luxury, once enjoyed, becomes a necessity.” I remember spending eleven years in a home with no air conditioning. When I moved out of that home and into a house with central air, I couldn’t believe I ‘survived’ all those years without it! How many things in life have we convinced ourselves that we can no longer live without? From a financial perspective, what if we had a better handle on our own understanding of these things in our own lives? What would change in your own finances if you could have a little more self-control and discipline?
The final point is, “Expenses rise equal to income.” When a pay raise, or bonus, comes along we usually have it spent (in our minds) before it even hits the bank. Once we have a consistent increase in income, most of us in the world begin to expand our living environment in one way or another. If we were better at living below our means, do you think we could get ahead a little better?
We have to change the way we think about money!
The average American household spends a shocking amount of money on interest payments each year on things financed. The average American is putting their pre-tax money into accounts that they can’t touch for decades and will be taxed at an unknown future rate – yet at the same time believe taxes are going up in their lifetime. The average American follows the heard, financially speaking.
What if there was a way to change up the status quo with your finances? What if you could be the bank and borrow from yourself instead of an outside institution? What if your one pile of money could grow in two places at the same time? What if you could live on income tax free money at retirement? These are all things we teach people how to do here at Unbridled Wealth.
Change the way you think about your finances, and it will change your future.
Article written by Jason K Powers.
Jason K Powers is a Mutli-Business Owner, Real Estate Investor & Wealth Strategist helping people change the way they think about their money, to create financial velocity that can last for generations.