The 3 E’s Every Adult Wants On Their Financial Report Card
Are you keeping score? In school we’re taught to keep score – the whole school system is made up of keeping score with grades A to E. Back in school no one wanted E’s and interestingly enough as soon as we graduate from school we stop keeping score. Keeping score was actually what we should have taken away from school. So, when it comes to the school of life you should be keeping score. When keeping score in the school of life it is those with the E’s that are at the head of the class. In this blog post I’ll discuss the 3 E’s every adult should strive to have on their financial report card.
The First E – Education
Education comes in many forms and in the blog post I’m only referring to financial education or financial literacy. Unfortunately most adults lack the proper financial education to ensure they can create a lifestyle of their choosing in their working years let alone in their retirement. Financial literacy is overlooked in school and in life – we as a society hire someone for that, and so we pay for it later. We collectively place our hopes in one size fits all retirement plans like 401k’s and social security. The sad thing is that after 30 years of working the average American has $ 2500 in savings. Even more compelling is that out of every 100 people only 1% is wealthy, 4% have adequate retirement savings, 3% are still working, 63% are dependent on family, friends, the government, or charity, and 29% are dead. These numbers don’t discriminate and have nothing to do with salaries or earning power. The solution is obvious as a society we need to master the process of turning money into more money. The only way to do that is by increasing our overall financial literacy then implementing that knowledge into action.
The Second E – Experience
Just as with education there are many different types of relevant experiences that are valuable. However in this blog post I’m referring to the experience of utilizing your financial education to create cash-flow through assets and or owning a business. This type of experience can be measured in results. These results show up in self-esteem, communication skills, marketing skills, investment skill, and ultimately in lifestyle. The experience of being able to work to create a lifestyle instead of going to work to make a living is something that can’t be valued. The interesting thing is as that establishing a self-funded retirement or a business that cash-flows can be done without giving up anything that you’re currently doing. Since so many of us lack any experience other than working for someone else we have no reference point of what’s possible or probable for us to create in the time we have available. Ultimately combining financial education with experience is the only way to create a high quality of life today and in the future.
The Third E – Excessive Cash
While most are struggling to make ends meet those who are focused on the first 2 E’s end up developing the third E – excessive cash. While the masses believe that lump sums are the key to creating wealth. Those with financial education and experience recognize that cash-flow trumps everything else. Cash-flow is the most important aspect of creating wealth. Wealth can always be created before riches, yet 99 out of every 100 people think and believe you get rich first then create wealth. Wealth is created as soon as you’re monthly cash-flow exceeds your monthly obligations. In other words begin where you are and when you passively produce the cash you need to survive without working you’re wealthy. With the proper financial education, experience, and game plan wealth can be created in less than 10 years by those seeking to create a life of abundance.
The Financial Conclusion
While there are many ways to get the proper financial education and experience to create excessive cash-flow the masses don’t recognize them. Simply, because they have no training to recognize financial opportunity. That is why I recommend individuals seeking more out of life seek out and find mentors who are following a proven path and actively creating what they desire. Don’t fall into the advisor trap. Advisors – advise through their own agendas, those that have your best interest in mind lack 1 or more of the 3 E’s. So, always get your advice from mentors. Mentors are actively creating what they want out of life by implementing the two E’s to create the third. Regardless of your current situation you have the means and resources to create the lifestyle you desire. Unfortunately the mindset and skillset to implement the two E’s to gain the third are not taught in school, and until they are or we begin to seek out the information ourselves wealth will continue to elude the masses.