The Nations economy vs. Your economy

“What happens in the nation’s economy isn’t nearly as important as what happens in your economy.”

Recent talk of economic blips and double dips may be considered critical news as it relates to the overall economy, but it may just be water-cooler fodder for most American’s.

Monday thru Friday American’s aren’t losing sleep over ‘double dip’ economic news; most American’s don’t even know what that means. American’s, regardless of financial means or stature, are freaking out about inflation and the rising cost of basic needs. Their fears and concerns hover around the rising cost of gas, food and insurance. They want to know how to stop or at least control the beast that is eating away at their paycheck, their standard of living and their future. They are far more concerned with their own economy then the nation’s economy.

The silent majority; those consumers or homeowners you don’t hear about or read about in most media outlets are searching out alternative products and services to get more out of their hard earned income. For many American’s, as far as their personal finances are concerned, are realizing traditional methods of personal finance are weak and inefficient, and may in fact be causing them more harm then good.

A huge segment of the population, primarily the low to mid-age side of the Baby Boomer population is starting to see their future and they don’t like what they see. After following the traditional rules of personal finance their entire lives they’re realizing the low rate, low payment mortgage they got a couple years ago means a mortgage payment well into their seventies. Combine that with an uncertain economic climate going forward and the need for alternative methods and expeditious results become paramount.

In a sampling of website visitors from January 2009 up to today, over 17,000 homeowners have provided us their basic economic information; what they owe, what they spend, their take home pay and what their homes are worth. This is what we know of those 17,000+ visitors: avg age; 47, credit score; 747, equity in their home; 25%, avg monthly take home income; $7973 and they spend $2880 per month on basic needs (food, gas, insurance, etc) Now this is not the type of consumer you hear about in the news. Nor is this the type of consumer looking for a government sponsored program to get them out of a jam. These are the ‘well-to-doer’s’ if you will. They are diligently seeking out smarter answers and better solutions for their long and short term financial concerns. How to eliminate and reduce the high cost of long term debt? How to recover as quickly as possible from the reduced value of their 401(k)? They are not finding the right answers with the traditional, conventional banker or advisor. They are however seeking out fresh ideas and alternative methods of personal finance. They are realizing that if they are going to maintain a desired lifestyle during a retirement that is quickly approaching they need to start seeing more production out of their monthly income. They are realizing that conventional practice put them in this position, so the notion of adopting something new, something outside the box of conventional thought and practice has appeal if the results are favorable.

However to adopt something new, to make a switch, to get to the desired result one critical thing must happen; a paradigm shift needs to occur. I know you have heard “paradigm shift” before, but do you know what the word paradigm means? Don’t feel embarrassed if you don’t, 99% of the population doesn’t either.

Paradigm: a theory or a group of ideas about how something should be done, made, or thought about

If a theory or group of ideas is acted upon and practiced over a period of time they become habit, so in essence a paradigm is a habit. ALL of us operate and function on habits or, in our own paradigm every day. Think about; pretty much everything we do is formed by habit. You can form a habit on your own or a habit can be passed from one generation to the next. Some habits are good, some bad, some we aren’t even aware of and some we just do because that is what we have always done or we just follow the heard. No matter where the habit came from or formed, if we are aware of or discover a habit to be bad and the results of that habitual action are not desirable or in our favor then we need to make a conscious decision to make a paradigm shift in our actions and behaviors.

So the paradigm in context of our finances: the collective and habitual use of long term amortized mortgages, checking accounts, credit cards, 401(k)’s etc; the use of these theories and ideas have landed us in the financial condition we find ourselves in today. Now, if we want our financial condition to ‘shift’ on a national and individual basis, then we need to analyze current practice, thought and ideas (paradigms). Through analysis we will become aware of inherent weaknesses, limitations or fallacies. Identification of such will lead us on a journey to discover alternative process and procedures. Implementation, execution and continued practice will then make the paradigm shift to a better, more efficient model a reality and undoubtedly will create the desired result.

So why does of EVERY financial institution, bank or investment firm continue to push the same old tired products and services? They are stuck and encased in a paradigm. Unfortunately, it will take unforeseen cosmic forces to break their paradigm. Take it from me; I have interviewed hundreds of bank executives and they believe their paradigm was presented by God himself in the 10 Commandments of Banking and Finance: #1 being Thou shall not change thy paradigm. #2 Covet ALL thy customers financial resources. #3 Thou shall flourish by fees.

For individuals and institutions alike: You can continue to do the same thing day after day, year after year and expect different results (Isn't that the definition of insanity?) or you can elect to initiate a paradigm shift in what you are doing today and guarantee yourself the positive results tomorrow. For all you parents out there; if you are too scared or unwilling to make a paradigm shift for yourself, do it for your kids. This country is doomed if the next generation doesn’t do things a little smarter than the generations that proceeded them.

If you want more then you’ll have to change what you are doing now. It really is that simple. And this applies to institution as much as it pertains to the individual. We all have to make a paradigm shift together if we expect the financial direction of our country to change. If ‘our’ personal economies change then the nation’s economy will change. It has to start from the bottom up, so as the opening sentence states and at this stage of our economic evolution; the nation’s economy is far less important than your economy. Get your economy squared away and moving in the right direction and the nations economy will move right along with it.

TruthInEquity.com delivers all the consultation, education, coaching and mentoring needed to make a paradigm shift. We provide the educational process of awareness and discovery. The implementation and execution expertise and a guarantee that you can and will achieve projected results. The national economy is in your hands. Are you going to help the paradigm shift or are you going to let the herd dictate your childrens future?

The Truth is in the Proof!