Wealth Creation Blog

Many of us, particularly those of us with children, never step foot in a bank anymore. Unless we make special plans to leave the kids at home, we’re doing our banking online and at the drive-up teller. What impact might this convenience banking atmosphere be having on the efforts of our children to create wealth?

The Good, The Bad

Convenience banking is resulting in a generation of children that have no concept of the reality of money. In wealth creation, that could be a blessing or a curse; which one it becomes depends largely on you as parent and/or mentor.The good news is that convenience banking raises children to think that money isn’t real. As we learn in wealth creation, money really isn’t real; money management and investment is nothing more than paper transactions in reality. It takes no “real” cash money to buy anything anymore—not fast food, not clothes, and especially not the big things like real estate and stocks. This is beneficial in that kids don’t get so hung-up and fearful of money.

The bad news is that convenience banking raises children to think money isn’t real. They have no idea about the actual cash backing debit card transactions and credit lines. They lack the concept of working for money to pay for a purchase. Children learn today that you buy what you want with plastic, but don’t often see the work and pay side of things. They learn to focus on the materials of life, not the money behind them. Instead of learning to save and build wealth, children learn to spend and become indebted to the banks. Later, they learn how to struggle to pay for it. It’s a backwards understanding of money systems.

The Answer

You can help your children and use this convenience banking phenomenon to your advantage as a teaching tool. How? The same way you help yourself learn to manage money and create wealth—with a wealth creation education. By giving your children more of a financial education, you will garner the benefits of the convenience banking mentality without the liabilities of the spending and debt trap. Include your children in wealth creation, and let them learn with you before creditors teach them the hard way.

Sean Rasmussen
Wealth Creation Blog
UniversalWealthCreation.com © 2004 - 2008

The typical debt cycle of the working family goes something like this:  

* Graduate school/university/college

* Get a good job

* Start going after the ‘things’ you want in life

* Use credit to get ‘things’ (to appear & feel wealthy)

* Become debt-heavy, cash poor

* Work week to week to meet the bills

 The typical debt cycle of the wealthy goes more like this: 

* Graduate school/university/college

* Get a good job

* Start building a base of savings

* Start buying assets/investing (things that make money)

* Keep job to fund more asset procurement

* Create income stream from assets

* Buy ‘things’ with cash money or asset-backed credit

* Gradually replace job income with asset income

* Retire early

The key difference between these two is the focus

 Early on, the working class (those who do not break out and create wealth; even the wealthy can start off in the working class) focuses on attaining the ‘things’ in life that they feel will make them feel wealthy and/or appear wealthy. The wealthy place the focus on building cash stores and investing—putting that money to work in the form of asset procurement; they worry not about ‘looking’ wealthy because they know that surely will come in due time. 

The good news is that it is never too late for the working set to break out of this cycle.  If left unchanged, the cycle will simply repeat itself into and beyond the retirement years.  The working man or woman will be lucky to retire at all, and many will become dependent on family or government; a few will have accumulated adequate retirement funding. Any time is a good time to break this cycle.  It does not matter one wit what your current financial situation is.  You can be buried in debt without an extra cent and you can make changes today that start you on the road to wealth creation.  It’s time to put yourself and your loved ones first and break the debt cycle with wealth creation.

Sean Rasmussen
Wealth Creation Blog
UniversalWealthCreation.com © 2004 - 2008 

This might seem a little radical, but for many it might be spot-on.  See how this might apply to you. 

Is It Time To Move For Wealth Creation?

Some past posts talked about how your environment or even your home or local community might be draining the energy from you. That energy is a valuable resource as wealth creation goes, and so in the interest of energy boosting alone it could be time to relocate to enhance wealth creation efforts. That’s one reason—one good reason—why you might find now is a good time to move; let’s look at a few others.  

1. Cut expenses.  We all know the cost of living in one area can vary dramatically from the next.  Maybe a move would be a good way to cut expenses and secure more money for saving and investment—wealth creation!

2. Live within your means.  Like so many others, perhaps you went after the house that you thought equated to wealth because it gave you the appearance of wealth; but if that house was never really affordable, it’s time to downgrade and start living within your means.

3. Get Inspired.  Okay, we already talked about this, but a new, more inspiring location can do so very much to boost wealth creation; it could make all the difference in the world.

4. Better investments.  Maybe your current location isn’t ripe for investment (like property investment).  Perhaps a move would put you in a better place where you could secure better, more money-making investments.

5. Move closer to your investments. If your home community isn’t a good place for investing, and you’ve started obtaining investments elsewhere, maybe now is the time to move closer to them to maximize efforts and gain better control.

 Now, am I saying you have to move to make the most money and create wealth?  No.  But it is one aspect of your life that you could explore and relocation just might be the key to wealth creation for you. 

Sean Rasmussen
Wealth Creation Blog
UniversalWealthCreation.com © 2004 - 2008