Posts Tagged ‘EUREKONOMICS’
“If it were not for the ‘last minute’, nothing would get done.” Dr Agon Fly
Many everyday events and occurrences are important; the kids are crying, the spouse is demanding, the boss is insisting, the grass needs mowed or the snow shoveled, and on and on. Chores, people, TV shows, and even bodily functions are shouting “Pay attention to me!” all the time. These demands are sometimes more urgent than they are important.
Paying your bills is one important everyday activity that becomes urgent when we put it off until the last minute. We tend to pay bills at the last minute because we think of it as an unpleasant activity.
However, paying your bills can also be an excellent exercise in awareness, self-appreciation, and gratitude.
- You can use paying your bills as an exercise in awareness. Paying for the things you bought and used…
- puts money at the center of your focus
- allows you to recognize both the value and the function of money in your everyday life
- lets you re-assess your decisions about money and realign your money usage with your life goals
- Moreover, paying your bills is an opportunity to pat yourself on the back. You work hard. You choose to spend your money in a certain way. Paying your bills, which are the direct result of those decisions, should be a source of satisfaction and self-esteem. If that is not the case, you may want to create greater awareness about the ways you are using the money that flows through your life.
- Finally, paying bills allows you to appreciate and be thankful for the work of the thousands of other Americans—just like you—who go to work every day to make sure…
- your electricity is on
- the grocery store shelves are stocked
- the streets are safe
- the cable or satellite TV is working
- the water is flowing and the sewage is treated
- the schools are open
…you get the picture.
We are entering the fourth quarter of the year. This is the time of year Americans…
· tend to run up the balances on their credit cards and incur other bills that they won’t see until January
· look forward with confidence but set themselves up to look back with regret
EUREKONOMICS™ is an approach to managing the money that flows through your life.
EUREKONOMICS™ lets you make sure you can always look forward with confidence and never have to look back with regret.
If you can delete the misconception from your thinking that paying bills is a burden and a struggle and replace that bad information with an understanding that paying your bills is a EUREKONOMICS™ practice in awareness, self-appreciation, and gratitude, you too will be able to always look forward with confidence and never have to look back with regret.
There is much talk in Washington suggesting that the Federal Government should take over businesses and social programs based on the assumption that…
- equality of results is essential to the success of everyday Americans
- equality of opportunity – “the pursuit of happiness” – is inappropriate for the 21st century
An economics professor once faced a group of students that insisted that equality of results, not equality of opportunity, would create a better society and economy. They insisted that an economic model of big government, big union, and big bureaucracy for redistributing wealth, like the one the Obama administration seems to be promoting, would work better than and that promoted by the Founders. They believed that such a model would create a society where no one would be poor and no one would be rich – a great equalizer.
The professor then said, “OK, we will have an experiment in this class based on a plan by which big government redistributes the wealth of the country to create equality among its citizens. In this class – our country for this experiment – grades are the wealth. We will average all of your individual grades and everyone will receive the same average grade. You will all be equal. No single student will fail.”
The class agreed to the experiment. After the first test, the professor averaged the grades of all the students and everyone got a B. The students who studied hard were somewhat upset while the students who studied little were happy. However, all of the students accepted the outcome and felt the experiment proved the case for redistribution.
As the second test rolled around, many of the students who studied little studied even less and the students who studied hard decided they wanted a free ride too so they studied less. The second test average was a C-!
No one was happy. Doubts about the efficacy of the program crept in.
When the third test rolled around, the class average was F. The scores never increased after that. Bickering, blaming, and name-calling created hard feelings. The professor was demonized. The students, disincentivized to achieve at a high level, would not study for the benefit of everyone else. Every single student failed.
The professor demonstrated to the students that redistributing wealth – grades in this case…
- failed to create benefits for any individual student
- penalized every student
The experiment demonstrated that a socialist society would also ultimately fail. We have seen the results of these kinds of governments many times over during the past one hundred years in failed socialist countries around the world. When the reward is great, the effort to succeed is great.
“When government tries to make everyone equal instead of assuring that everyone has equal opportunity, government imprisons individual liberties, shackles incentive, and no one can succeed.”
- Dr Agon Fly
As the late Adrian Rogers said, “you cannot multiply wealth by dividing it.”
EUREKONOMICSTM rests on the solid principles laid down in the Founding Documents and the two hundred fifty years of the demonstrated success of free enterprise that transformed America and other free societies into economic, social, and moral leaders.
These principles have endured, successfully overcome abuses along the way, and currently recognize the failures in the system that need attention…
- Some businesses grew and prospered on the backs of slave labor but failed for the same reason.
- Some businesses abused capital and took advantage of workers, and free enterprise America corrected for these errors by creating competing businesses that honored the work of their employees.
- Unions began as advocates for employees and morphed into empires that exploit their members.
- Groups like Acorn and AARP masquerade as advocates for members but act in their own interest or as the pawns of political groups.
- Elected officials seem to lose their moral and ethical compasses as well as the memory of who elected them once they achieve office.
Knowledge, understanding, and wisdom are complimentary and synergistic. However, it should be clear that only wisdom embodies the qualities of all three. It is possible to have an abundance of knowledge, deep understanding, and a complete lack of wisdom.
NAZI Germany (and successors totalitarian governments around the world today) demonstrated this gap most shockingly when it applied knowledge of what is required to sustain human life and understanding of how to eliminate those requirements to annihilate six million Jewish and other human beings. Wisdom was absent.
When discussing knowledge, understanding, and wisdom as they relate to personal economics, considering the role of education is essential. 21st century Americans do not understand money. One of America’s leading commentators on money, wealth, and business in general said this:
“In most cases, when people make more money, they get deeper in debt.” – Robert Kiyosaki
These folks have knowledge and understanding but a serious deficit in wisdom.
Nonsense from VP Joe Biden and Others
Our educators, legislators, unions, big businesses, and government bureaucracies have led Americans down a similar path to financial ruin. Many Americans’ personal economies are already broken and the US government is following a fools path to financial ruin with its insistence that “We the people” need more debt.
“Now, people when I say that look at me and say, ‘What are you talking about, Joe? You’re telling me we have to go spend money to keep from going bankrupt?’. The answer is yes, that’s what I’m telling you.” – VP Joe Biden
Debt Equals Loss of Liberty
The foundation for a personal (or national) economy is money that you control. Debt is money that others control. Worse still, it is money that you actually pay those others to control. You give up your libertyand pay others to do so as if it were a privilege.
Alternative to Debt
EUREKONOMICS™ teaches that money serves you in four – and only four – ways.
- It serves to eliminate debt and regain control of money that was previously ceded to others.
- It serves as ready cash to deal with life’s surprisingly unsurprising surprises – unexpected expenses and opportunities.
- It serves to deliver inflation protected income at a time of your choosing that you don’t have to work for and you can’t outlive.
- Finally – in every sense – your money and your wisdom about money allow you to deliver a legacy to those you care most about.
Debt is financial death and the death of liberty. Presidents, Vice Presidents, legislators, union bosses, big business execs, and individual Americans that fail to recognize this fact lack knowledge, understanding, and wisdom.
Financial Literacy in Disguise
Television is a great teacher. So is the internet. That’s only true, however, if you pay close attention to the advertising and not the shows that are supported by advertising.
Advertising costs money. Lots of money. Businesses that can afford extensive TV and internet advertising need to be making lots of money. Advertising also tells you what’s at the front of the minds of Americans.
Here’s a few of the general business catagories that are currently spending millions – probably billions collectively - on TV and internet ads:
- Credit repair
- Credit negotiation
- Credit watch
- Tax mitigation
- Class action law suits
- Auto insurance
- Life insurance
- Sham WOW! [just threw that in for the fun of it]
It’s All About Selling Products
Of these, life insurance and investment ads bear special meaning for me. For almost 40 years, I’ve been helping people understand their alternatives when considering insurance and investment decisions.
During those almost 40 years I have studied economics, insurance, investments, and all of the topics that insurance and investment advisors must study to earn and keep their licenses, registrations, and appointments. I have also studied the various selling strategies that insurance companies and investment houses use to entice you to buy their products.
It’s important to remember that these companies are selling products. The products are packaged as “peace of mind,” “wealth creation,” “future security,” “best savings account,” or “concern for your family.” They are still products.
What is a Product
Products aren’t bad things. However, when you follow a link or respond to an ad that points you to a web-site or a toll free number for advice and guidance, be aware that the company sponsoring the ad wants to sell you their products: life insurance, mutual funds, investment advice [yes, advice is a product whether you pay for it by means of fees or by means of commissions].
Beware of Good Intentions
Often the web sites contain “calculators” that are supposed to help you arrive at a decision, while the advisor on the other end of the toll free number claims to aim at the same thing. Putting aside good intentions – paving material for a very unsavory place – the result of these calculations and advice will always be the same: “Buy my product.”
The product that the site or the advisor recommends may or may not be your best choice.
- My expectation, based on experience, is that it is not even close to your best choice.
- My advice, based on experience, is that you find an experienced advisor that is not affiliated with just one company and that does not ascribe to conventional wisdom – doing what the rest of the industry does because that’s what the rest of the industry does.
Changing Your Mind About Money
Very often your best choice is not goin to be a product at all. Rather, it is going to be a change in your approach to creating and managing your personal economy and your personal wealth; changing your mind about money.