THE STARTING POINT
Your economic situation is a matter of choice not a matter of chance. In your every-day life, you may find it more and more difficult to delegate the time necessary to uncover information needed to plan a successful future. Many professionals subscribe to the theory that owning the proper products will produce the desired results that will create future success. Although products and investments are necessary, they are not the center point in planning your future. The products you purchase are not the source of your knowledge, they should be the result of your knowledge. Knowledge is some- thing you learn. Wisdom is the ability to apply knowledge to your everyday life.
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Eliminating Losing Financial Strategies - ELFS more Eliminating Losing Financial Strategies - ELFS
THE DEVASTATING IMPACT ON YOUR FINANCIAL SUCCESS What you know today will determine where you will be financially five to ten years from now. The products available to you in the financial world will not make you smarter simply by purchasing them. Success can be achieved only when you understand how these products will impact your future. Will these products solve the problems of taxes, risks, inflation, penalties and the value of the dollar, or simply compound the same problems in the future? The challenge is to avoid as many future problems as you can. Something Out Of Nothing THE $20 BILL STORY SOMETHING OUT OF NOTHING If I am addressing a group of people, I will ask someone to lend me $20. Someone is always kind enough to oblige me, and I tell the rest of the people to get out their wallets and purses because we are going to play an exciting game. I will hold up the $20 that I have just borrowed and sell it to the first person who can give me a $10 bill. This exchange usually happens rather quickly. I ask the person who just purchased a $20 for $10 how they feel. Their response is usually favorable. Now I am holding a $10 bill, and I would like to sell the $10 for a $5 bill. This trade also takes little or no time to accomplish. I ask that person how they feel. They typi- cally feel pretty good also. Now I will sell the $5 bill I have from that transaction for $1. This happens quickly because everyone is beginning to understand how the game works. I am left holding a $1 bill, and I ask, "Now that you know how to play the game, I have a pocketful of $20 bills, would you like to play again?” Of course, everyone wants to play again because now they understand how to play the game. I will then take the $1 bill I have left and return it to the person I borrowed the $20 from and ask them how they feel. Not very good, right? I note that I gained three new friends at the expense of one. Now I ask, "Where is our big winner?” Usually the person who bought the $20 for $10 dollars jumps up. Wrong! You see, that person did well but only doubled their money. The person who paid $1 for $5 did much better; they received five times what they paid. |