Hello! Seiiti Arata. This is a special video about the biggest mistake poor people make. A mistake that could be avoided in order to bring financial prosperity, financial enrichment.
A clarification before continuing. This isn’t a video about poverty in the sense of hardship. It’s not this type of poverty that we’re dealing with here.
This video is about a mistake made by those who are poor in spirit. Poor in vision. Those who have a poor mentality. There are those who earn extremely well and even so, are poor. Poor for not knowing the value of money. For not knowing how to use money with wisdom, for not knowing how to multiply money.
Here in our chat, when we speak of poor people, we’re talking about people who could have a prosperous condition if they didn’t make the mistake that you’ll learn about here.
1. The biggest mistake made by poor people is not to master the Psychology of Money.
When I provide financial enrichment training, one of the first concepts that I present is the Psychology of Money. It doesn’t mean that the little note of money is going to sit on the Psychologist’s couch.
Psychology of Money is the exam (and improvement) of the mentality that you use when dealing with money. It’s the review and improvement of your financial choices, your investments, your savings. Money Psychology is what describes your ability to BUILD or to DESTROY your financial assets.
And you can change your Money Psychology by changing the beliefs, associations and feelings you have in regards to money.
2. Raise the level of importance that money has in your strategic plan
Strategic Plan. There are those people who plan absolutely nothing, that have no strategy at all. There are those who seem to pretend that money doesn’t exist. They close their eyes when money is the subject. They’re embarrassed to ask the price, instead wishing to appear rich, putting things in the shopping trolley without first checking the cost. The restaurant bill arrives and they don’t check if everything’s correct.
There are people who commit to participating in events and activities without first calculating how much the bill will be. They just grab their card and say ‘let’s do it!’ – They commit themselves first and only think about how they’re going to pay afterwards.
There is a certain admiration in the idea of not caring about money. It would seem that money is a dirty subject. There’s embarrassment in asking for a discount, in researching the price of things before committing. Living life like this is an irresponsibility. Not giving money it’s due importance is like living in a world of make-believe.
Notice something obvious: money is a tool that we use for the function of society. So that commerce can happen, so people can work, exchange value, services, products.
Because of this, sooner or later, you’ll need money. Closing your eyes won’t cause reality to cease existence. Closing your eyes will only disadvantage you into not seeing what’s happening. Pretending that money doesn’t exist or pretending that money isn’t important will only make you vulnerable and unprepared to deal with your finances.
It’s because of this that there exist desperate people, looking for loans, begging for a job, living off of favours, worried about the future.
They don’t dedicate enough focus in becoming financially literate, financially mature. In this way, they work for money instead of making money work for them.
3. You need a new strategy to deal with a new reality
Reality has changed and is giving us three slaps in the face. It’s what I call the Three Slaps of Reality. And we all have to dodge it, block it so we don’t get these slaps in the face. What are the Three Reality Slaps? Your degree is worth less. Your family are retarded. You’re not going to reach retirement. Calm down so I can explain each of the Three Slaps of Reality:
Reality has changed. Your degree is worth less. These days a university degree doesn’t guarantee a better quality financial life. Our generation has a superior academic level to any other previous generation. Almost everyone you know has a university degree. But in the old days it wasn’t like that. And today, the differentiation of having a university degree is almost never worth the cost of the opportunity, the years that you’ve invested to get the degree. You invested time, you’ve invested money going to university. But the salary you receive, on average, is nowhere near high enough to compensate for this investment. Companies are collectively complaining that the content taught at university is irrelevant, outdated, inadequate for what the company needs. So then you need to specialize, which will cost even more time and money. Without having a financial enrichment plan, people get themselves into to debt to finance their studies, lose years and years studying and when they finally leave the cocoon they’re not able to get back their investment. Investment. It’s necessary to change your mentality and stop thinking like an naive student. Now it’s necessary to think like a professional investor that wants low risk and high return.
Reality has changed. Your family is retarded. I’m not talking in the vulgar meaning of the word retarder. I’m talking of retarded in the original sense. Retarded is delayed, a Latin word: re tardare (very delayed). The family is retarded when people are getting married later. They’re having children later. In many cases the couple postpone, put off, delay the decision to have children so much that suddenly the biological clock no longer even allows it. How many couples don’t you know who have left it for later, and then it’s too late? They’re not able to have the children they wanted and now have a puppy, a kitty, a little house pet to make up for it? Please don’t criticise, don’t judge these couples because delaying, postponing isn’t a selfish decision of wanting to just enjoy life, it’s a financial decision, as there are couples that know they won’t have the financial conditions to bring children into the world, that aren’t even able to pay their own bills. There are couples that need to live with parents, with parents-in-law as they haven’t been able to get their own place. They missed out on reaching financial freedom earlier.
Reality has changed. You’re not going to reach retirement. This one here isn’t a slap in the face, this one here is Thanos giving me a punch in the stomach with the Infinity Gauntlet. In the whole world, pension plans are failing. The government wants you to contribute for longer and receive less. The reason is that the retirement calculation was developed in an age of lower life expectancy. But the problem is that they’re still living longer than expected. With the advances in applied technology and medicine, they’re going to live for even longer! And the public pension doesn’t have enough money to pay everyone. And the same thing happens with pension funds, that are crashing so much because of economic problems, because of the longevity of people or for pure incompetency or managerial fraud. The problem worsens still because of the aging population and the exponential increase of automation of robots and technological systems, so there is a crash in the amount of people able to contribute and an increase in quantity of people wanting to receive. Today, there are more than ten people of active age (working and contributing) for every elderly person (retired and receiving). In 2030, the proportion will be 5 workers for every retired person. In 2050, it falls to three to one and, in 2060, just two people will work to each retired person. Do you really think that the system will continue to work? This is a gigantic problem and people aren’t justly giving it due importance, for not having dominated the Psychology of Money and for having closed their eyes. They think that everything will sort itself out after and that it’s not worth worrying about money or the future. You have to create your own plan, with a portfolio of good investments, with low taxes and few contributions, with high returns, and low risk.
The biggest mistake poor people make is not doing what needs to be done to have absolute control of The Psychology of Money.
In pretending that they don’t care about money, in not making a strategic financial plan, in not raising their levels of financial literacy… What happens? They end up suffering. See the paradox. The person that doesn’t worry about money ends up being the one that most has to deal with future problems. They didn’t PRE-OCCUPY. And so they’ll have to OCCUPY themselves to face various problems after.
Money is a great employee and a terrible boss. Money is a great employee that will do what you want it to. Money is a terrible boss and you in absolutely no way want to have to submit to money. Of course you don’t want to be a tightwad, penny-pincher, a psychopath that only ever thinks of money. In the same way that you don’t want to be a someone with their head in the clouds, silly, irresponsible, not giving your money the due attention. The apparently admirable attitude in never thinking of money is an acid that will corrode your future.
People that don’t understand this are those that end up trading their health for money, trade their family time for money, trade their personal time, and unfortunately in some cases their honesty, character, honour for money. They lose their own integrity for money in the future. Precisely for not having attributed the due importance to money NOW.
For this, I leave you an important invite so you don’t become this person. Visit the link https://arata.se/moneytaboo so you can do what needs to be done now.