Shifting the Financial Paradigm?


Wealth and the lack of it is a popular discussion, why? Why,when attending school, whether high school or college even acquiring a business degree, such as an MBA, do they still not teach financial literacy. We are a consumer driven society, hard pressed on every side to increase our spending to match or exceed our income. This coupled with a false view of what an asset versus a liability is, often leads us down a perpetual path called “the Rat Race”.

The funny (read ironic) thing is we can teach financial literacy but intellect alone is not enough. Wisdom(applying knowledge) and discipline are necessary in order to put a financial house in order. It leaves me wondering what or how might someone be willing to learn and change? My experience has been that even crisis often is not enough to change ones habits or perceptions, add to this a sense of hopelessness that even change will not bring results and we end up with a vast majority of people unwilling to even try!

The old adage “you can lead a horse to water, but you can not make him drink” comes to mind here. In spite of all we have said here, I have a passion to teach and see people find control and freedom in their financial lives. Because of this I continue to ask why people feel the way they do, and how can I help to bring hope and help in practical ways to those who feel trapped.

How are you doing in your financial life, why is it so hard to talk about, what ideas can you share that would make it easier for you or others to seek help or make lasting changes, based on your understanding, what things in your financial life do you consider assets and what do you consider liabilities?

JT

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About JT

I am a happily married man with 6 children and have an autoimmune disease. I hope to share my story and explore others' stories and perhaps together both of our lives will be enhanced.
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8 Responses to Shifting the Financial Paradigm?

  1. You make some good points. Financial literacy would probably be easier to teach in high school than home ec. At least to my mind, understanding how costly the minimum credit card payments are, is far easier than baking a pie.

    I remember too that Scott Adams inserted a sing page, “Dogbert’s Guide to Investing” in one his Dilbert books. He explained that he wanted to do an investing book but his publisher wanted more pages. This was back in the 90’s when people were optimistic but his basic advice, about dollar cost averaging into a 401K or IRA, in three simple index funds would probably still beat almost all other strategies.

    Unfortunately, I think there are corporate interests that don’t especially want savvy consumers…

    • JT says:

      I agree Morgan, most people don’t even understand dollar cost averaging let alone utilize it’s long term benefits, this coupled with the microwave mentality of accumulating wealth leaves most in dire straits come retirement.

  2. Donald Miller says:

    I think placing the correct spin on ones situation is important. For instance, I don’t have a car NOT because I’m eh-hem short on cash . . . why it’s because I’m, . . . I’m hmmm, let’s see– an environmentalist. Yeah that’s it.

    • JT says:

      Donald, you are hilarious :D. How are you doing? I miss our interactions.

      • Donald Miller says:

        Hey JT. I’m doing all right. I’ll keep in touch, friend. I came by here a couple of times, but I couldn’t really think of anything to say on the post, so I just mossied off. Gee, I must be doing everything wrong in terms of building a readership.

        (Probably all self-inflicted though.) I keep making sites with subjects that no one is interested in. Well, somebody has to raise the awareness of these fascinating and popular subjects. No. Wait. That can’t be right. They’re neither fascinating or popular.

        Oh, well. It’s stuff I like. And there are hundreds of thousands of people who come to wordpress and millions more online. So, some folks will be interested in the sites, right? Well, wait a minute, hmm. . . as I recall, I got lots of the material from Project Gutenberg, which has millions of people go to it to read books for free. But, uh, now that I think about it, all of the stuff I downloaded had between twelve and fifty-six previous downloads in the last four years.

        So, hey. By golly that averages to about fifteen to twenty downloads per year, so . . . arg.

        😦

        Hope all is well and good with you and your family. So long for now. 🙂

      • JT says:

        Well if it is stuff you like then I say no harm, no foul. If others aren’t interested then at least you are increasing your knowledge. Now… if you are looking to create a following and you don’t want to deal with controversial issues then that is a horse of a unknown color :-). I keep plugging away here not really expecting many people to stick around for long… unless I figure out some ancient secret never before revealed, the hope of holding anyone’s attention beyond a nano second seems unlikely. Take care and stop by from time to time and say hi. Let me know if you find things to share :-).

  3. L. Palmer says:

    Financial responsibility is a tough discipline. I’m grateful that I’ve been taught financial skills through youth activities in church and Girl Scouts while growing up. I lost my job last year (I now have a better job) and was grateful I had saved up three months worth of living expenses. It gave me some time and wiggle room while seeking employment.

    • JT says:

      Thank you L. for sharing your experience. This unfortunately is the exception rather than the norm. Frankly, teaching it in schools would not be a guarantee that it would become the norm as self-discipline is much easier to talk about than do 🙂

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