jump to navigation

Beyond the Technicals; The Mental Structure of the Wealthy August 6, 2008

Posted by shaferfinancial in Uncategorized.
Tags: , , , , , ,
trackback

I have spent much of the last two weeks talking about the technical analysis of investing and why some products are better than others.  But the reality of wealth creation is that folks can understand the technical side, however, fail to achieve their wealth goals. Why is this?  Well, the largely unnoticed part of the wealth riddle is one’s mental structure.  Scientist call this a paradigm, or a “an entire constellation of beliefs, values and techniques, and so on, shared by the members of a given community” (Thomas Kuhn, 1969).  In short, every group has a set of mental structures that frame the way it thinks.

The poor has a set of mental structures that make it very difficult for them to successfully navigate the middle class. Of course it can be done, but this is why each socio-economic strata is sticky or retains most of its participants.  The middle class has its own paradigm.  And of course the wealthy their own way of thinking.  The “Rich Dad, Poor Dad” series of books and education does a credible job in outlining the differences and it is well worth it to read Rich Dad’s Cash Flow Quadrant for example.  

After reading and educating yourself, the wealth riddle gets toughest to solve.  Technical analysis does not take a huge IQ or even advanced math, as Warren Buffett likes to point out, but to change your mental structure takes much more than reading a few books or attending a weekend seminar.  It takes consistent and purposeful effort.  And most people, even if they acknowledge the need to reform their mental structure, are incapable of doing it alone. 

That is one reason so many people who are willing to pay thousands of dollars, to attend a seminar or buy a course, fail.  Because the end of the seminar or course is just the beginning of the change.  The light bulb might have gone off, but it takes much more than that to attune ones mental structure to creating wealth.

Sometimes, I get so caught up with this blog in critiquing the middle class financial paradigm, that I forget that people can’t just move from one mental structure to another with a snap of a finger or a series of blog  posts.  Of course, the Shafer Wealth Academy (www.shaferwealthacademy.com), is designed to get people from one mental structure to another, so I know how to do it, but I am sometimes oblivious to the nature of my audience.  This can make me seem to be arrogant, or even worse, clueless.  If you read my blog and get that feeling, I only ask you to understand that I am coming from a place that is very different than where you reside!

 

However, if you are like many of the people who do contact me, and either consciously or unconsciously, recognize the underlying truth in my posts, remember that it takes time to change our mental structures.  I am more than willing to help you in that process either passively through my writing or more efficiently by membership in the Shafer Wealth Academy.

Advertisements

Comments»

1. jason gardner - August 28, 2008

how do i get people with money to help me start up my invention or how do i get the chance to even contact them or just pead my case to them I really need a donation more or less HELP

2. shaferfinancial - August 28, 2008

Jason,

You are trying to put the cart before the horse. Here are two things that need to be done first.
1. Is your invention patentable? Go to the web and find out what you need to do to patent the invention. If you can’t handle this yourself, then there are folks who can help you, but do your due diligence as there are many folks who will take your money and not help you get a patent.
2. Create a business plan. Again there is good information on the internet on how to do this. If it more than you can handle then find a local professional that can do this for you.

Now with a patent and a business plan in hand, go to your friends and family. If you can’t sell them the idea, then it is unlikely you can sell it to anyone else. Pitch the idea to everyone you know, you will at least get good practice at the pitch. Most inventions are funded by the friends and family method. Once you have a prototype and a working business model, then you are in position to talk to equity investors. These folks will access the ability of your BUSINESS to give oversized rate of returns.

Bottom line, inventions are worthless unless they are turned into a working business. Each step of the way, you can find people to give you there opinion about the success of your business. People vote with their money. If you can’t convince folks to buy into your business, then that is telling you something. And the vast majority of businesses were started with funding from friends and family, so there is no shame in going that route. Everyone you meet is a possible business partner and someone that can help you. But always do your due diligence before shelling out $$$ to anyone.

Good luck!


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: