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« You Don't Own Real Estate. Real Estate Owns You. | Main | Classic Analysis Always Wears Well »

10 August 2007

The Choice Is Yours

By Logan Flatt, CFA

    “Money makes the world go ‘round.” Although it is a cliché, I have not found anything in my years so far on planet Earth that seems to suggest otherwise. Money has a powerful influence around the world. People the world over make critical decisions – good or bad – based on money. They also change personal behavior based on money. Money does not have to be present to make people change decisions or behavior. Often, it is the lack of money that most influences how people think or behave.

    On the surface, the process of making money seems mysterious and complex. Don’t be fooled. Making money is simple:

    Sales – Costs = Profit

    That’s not to say, however, that making money is easy – because it’s not.

    In fact, making money is a challenge for most of the 6.6 billion people in this world. Most live in poverty or just above it. However, the 301 million people living and working in the United States of America – who represent less than 5% of the world’s entire population – appear to have mastered the art and science of making money quite well, thank you very much, as evidenced by the U.S.A.’s $13.1 trillion economy – nearly 20% of the world’s entire economic output. No wonder then that the United States of America – with disproportionate economic power given its relatively modest population size – is referred to by many people around the world as “The World’s Superpower.”

 

Copyright 2007 PowerWealth.com | 2007 World Population and GDP (PPP) by Country.

    What makes money so complicated and so seemingly hard to make? Human beings. You cannot make money in a vacuum. You need to transact with other human beings to make money. That is money’s fundamental purpose – to facilitate the exchange of goods and services among individuals, corporations, and governments. A human being or a group of human beings lies behind each of these economic entities. Now, I am sure that you will agree with me that human beings are highly complex creatures. Moreover, nowhere do human beings get more complex than when they are with – or without – money.

Copyright 2007 PowerWealth.com | PowerWealth.com Unabashed Dictionary: Miserablism & Miserablist.

    Pessimists, cynics, and miserablists alike claim, “Money is the root of all evil.” As is typical of their negative, self-defeating ilk, they are wrong. Money is not evil at all. Money is not inherently good either. Money possesses no emotion, no feelings, no thoughts, and no beliefs. Human beings possess these things. Human emotion is the root of all evil (e.g., envy and hate) and of all good (e.g., trust and love). Money is indifferent. Money is innocent.

    Despite its neutrality, money has a special magnetic quality: money is highly attracted to reason. If you are new to the concept of getting ahead financially, you will soon learn that the best way for you to attract more money to your life is to control your own emotions. After all, emotions like fear, greed, anger, hate, envy, and even optimism can quickly lead you into financial trouble. But, to really stake your claim to lots and lots of money, you must learn to cut through the emotional haze created by other human beings with a razor sharp weapon: rational thinking.

    To get ahead financially, you have to concentrate and focus your rational mind on building wealth over the long-term. You must rid yourself of the emotional distractions that keep your mind mired in the short-term and its wealth-depleting temptations. I am not saying that you must ignore everything else in your life to the detriment of your health and those you love. I am not saying focus exclusively on building wealth either. What I am saying is that to truly build wealth for you and your family, you must make a conscious, rational choice today and be committed to your choice going forward.

    Your choice is between Option A and Option B:

    Option A: "I am willing to do what it takes to get ahead financially over the long term."

    OR

    Option B: "I am not willing to do what it takes to get ahead financially over the long term."

    Why are you not getting ahead financially? It is likely you have made the wrong choice between Option A and Option B in the past, or more likely, you have simply neglected to make the choice at all. The point is, you have a choice. And, to get ahead financially, you must make that choice.

    So which do you choose, Option A or Option B? Stop, think for a moment, and make your choice right now.

    (The waiting music from the game show “Jeopardy!” should now be playing in your head).

    OK, you have made your choice, right?

    And, you are firmly committed to that choice from now on, right?

    Congratulations! You are now further ahead financially than perhaps 90% of the American population. Most Americans have not made the choice. They simply fly their financial lives on autopilot every day. However, you are different. You have made the conscious, rational choice. You have made the commitment to yourself. You have officially turned off the autopilot and are now firmly at the controls as you fly through your financial future.

    Now, the Big Question:

    Did you choose Option A or did you choose Option B?

    If you chose Option A, I know PowerWealth.com can help you because you are committed to doing what it takes to get ahead financially over the long term. Please return to PowerWealth.com again and again over the coming months to learn more of the insights I will be sharing with you.

    If you chose Option B, I don’t believe PowerWealth.com can help you much. My insights into building wealth can only help those individuals who are committed to doing what it takes to get ahead financially over the long term. You, unfortunately, have chosen otherwise. Still, I hope you will continue to return to PowerWealth.com. Who knows? You might just learn something new. And, if you ever feel pangs of regret for the choice you have made today, please know that PowerWealth.com will be right here to guide you through the choice again.

    Until next time, be sure to take time out to notice and watch how “money makes the world go ‘round.”

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NOTE: The term "miserablism" is believed to have been first attributed to Neil Tennant in 1990.

Copyright 2007 PowerWealth.com. All rights reserved.