I'm guilty of it too sometimes...
Herd Mentality. What Is It?
This describes the tribal aspects of humans. It should not be confused with "herd behavior" which is found throughout the animal kingdom.
Herd mentality describes certain human behavior, decentralized decision-making, fashion, cars, consumer goods, purchasing, social convention, political beliefs, religious beliefs, how we dress, how we manage our money, and social belief systems.
This is also true for money beliefs.
The problem with this is that most of our learning about money and financing is quite limited to learning how to balance a checkbook and playing it safe. Most working folks rely on consumer credit, 401K, mutual funds and diversifying. We are taught that all debt is bad, and that indoctrination has become well-established in our education systems and throughout our societies.
This is a faulty belief and very much a part of herd mentality. We get most of this learning either from authority figures in our lives or from the education we've gotten.
To be part of the "herd" is to do and act just as the masses within that herd does and acts. We do what it does, we get what it gets. This is not always the best thing. I, myself, choose to walk the other way. I've always been this way. Sometimes that's good and sometimes that's bad. That's the price of blazing our own trails in life.
I see the answer as very simple. Learn the skills here at WA--learn to sell (I don't care what any one says -to make big money you have to know how to sell) Don't be lazy go to work and learn your trade. Make a boat load of money and once the money starts coming in --do it again and again.
I know for a fact from my clients say that Kiosaki's realstate education doesn't work as it is sold in his books. "YOU NEED MONEY TO MAKE IT WORK" I service clients who own hundreds of homes and apartments and they laugh at the advice given.
Put all your efforts here make a ton of money and the rest will fall into place.
IT'S ABOUT REASONS AND RESULTS AND THE FIRTS ONE DOESN'T COUNT"
STAY FOCUSED!
I am involved with The Palm Beach Letter's Wealth Builder's Club and they have a program about infinite banking which was written about by R Nelson Nash. His book "Becoming Your Own Banker" is a great read on this. I've also read "Financial Independence in the 21st Century" by Dwayne and Suzanne Burnell.
It's based on Whole Life Insurance. I know, I know, Life Insurance?? That is why it is so amazing. You set up the policy to minimize the death benefit and maximize the savings benefit. As your money builds you loan it to yourself and pay yourself interest. Soon you have enough to invest in income properties, new businesses, or other things to build the account even higher. When you get to retirement you can continue to borrow from the policy to fund your life tax-free (it is a loan and the government doesn't yet tax loans). It's a total win-win way to live.
And it is a way to create generational wealth since you can set up accounts on your children, pass ownership to them when you are older, and teach them how to do it also so they can pass it to their children. Also you can set up policies on your grandchildren as soon as you have some.
I'm just getting things set up but this is one of the things I plan to write about.
Tim
This was a long read but way too true. There is really only one thing I can add and that is to become your own banker. If you borrow money from yourself then you pay the interest to yourself. However you need to pay yourself the same rate you get from traditional banks. It takes awhile to set up but it is worth it. It's something that I am working on now.
Tim