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Learn to Overcome Your
Systems of Dependency
Since birth We are all brought up with systems of dependency. When we are young we depend on our parents to learn right from wrong. When we go to school we depend on our teachers to show us the learning process. When we leave school and get a job we depend on our boss to tell us when to be there and what to do.
For most people when these systems of dependency are removed they do not know what to do for themselves. This is referred to as the entitlement mentality and it includes….
- J-O-B
- Saving for Retirement
- Welfare
- Medicare
- Social security
- Seniority
- Pensions
- Money
- Education
- Banks
What it really comes down to is independence. People unwilling to stand up and take responsibility for and control over their own situation are forced to depend on all of these systems of dependency that exist just for them. Even when people DO decide to take control and make a change, there are a few obstacles that usually prevent people from making real progress.
- They do not have a plan
- They follow a slow plan
- They fail to follow the plan
You are either a master to money, or a slave to it. People who rely on different systems of dependency usually end up self-satisfied. This is not a deep satisfaction, rather a lack of being concerned over the state of your immediate situation. You do not the feel urgency or motivation to invest your time, learn a little bit, and improve your plan (if you even have one). Normally, without severe and immediate consequences, people are unwilling to invest their time learning what they need to learn to improve their long term situation.
J-O-B
A job is the most common system of dependency. If you have a job, you are working for money (earned income). You probably rely on your paycheck to cover all of your expenses. At the point your focus is on keeping your expenses within your income (at the expense of improving your financial situation), you have become dependent upon your paycheck. Depending on a job keeps you from determining your best plan, and also demands that you invest much of your time focusing on your job.
Saving for Retirement
This goes straight to the idea of the Velocity of Money. Rich people move their money from investment to investment, getting a return on each deal. Poor people usually save their money for retirement instead of investing. The average person has no idea know idea how to invest their savings with good results and must rely on the systems of dependency. They lack the knowledge and experience to do so.
The more knowledge and experience you gain, the better your plan becomes. The better your plan becomes, the more control you have, and the better your results. The most important thing you can decide is to invest for retirement instead of saving for retirement.
Saving for retirement includes but is not limited to "Investing" in mutual funds, 401k, IRA, and Superannuation. Instead of doing all the hard work of writing down and comparing several plans, and than making a knowledgeable and informed decision, you decide to save for retirement instead. You depend on this as "your plan".
Instead of depending on this as "your plan", I would recommend investing your time to learn everything you can about investing money. Think of "investing" simply as a plan for converting earned income to passive income and portfolio income.
Money
People who do not learn to control their money will find themselves dependent on their relatives, welfare, social security, medicare, banks, credit cards, home equity, their jobs, their pensions, and their retirement savings to survive. Gain a better understanding of this concept by reading the saving for retirement section.
Education
Many people believe by focusing on and furthering their academic education, they may solve their financial problems. Unfortunately, our schools today do not teach us financial literacy. If you are depending on what you learned in school to help you become wealthy, that would be a mistake. Getting a good job, working hard, and saving will not make you rich or solve any of the problems of your current financial situation.
Seniority
In the industrial age, the person with seniority was valued over the person with no seniority. However, in the information age, the person with the most current information is NOT the person with seniority. In the information age, seniority is actually a liability.
Improving your long term situation and gaining your financial Independence means never having to work for your money (earned income) again. As you learn your plan becomes more efficient. Once you begin understanding the concepts you realize it is very realistic to retire in four years instead of forty years. Even if you work at a $7/hr job.
All of these systems of dependency keep your focus from the true prize…..improving your financial situation and achieving financial independence.
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