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What every middle class person should understand about their financial behavior! December 2, 2008

Posted by shaferfinancial in Uncategorized.
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About 10 years ago, I took a serious look at my financial life.  I had grown concerned that my net worth was not moving ahead at the velocity it needed to in order that my wife and I could have a comfortable retirement.  Frankly, we were doing the things that Wall Street and the Banks encouraged us to do.  We thought these were the prudent financial behaviors needed for success.  We were wrong as my research was going to point out. 

There are really three behaviors needed to have a successful financial life; spending control, wealth creation, and wealth preservation.  We had concentrated on spending control and what we thought was wealth creation, but was really wealth preservation.  In short, we were doing what the majority of the middle class tries to do.  We were concerned about the size of our mortgage, wanting to have it paid off as soon as possible, and invested in mutual funds inside a tax deferred wrapper (403B).  And we were good at saving over 15% of our income.  That is why I became agitated, we were doing exactly what we were supposed to be doing and our financial progress was not very convincing.

So I went on a fact finding mission, researching wealth creation and personal finance.  Well, what I found was eye opening.  I was not involved in any wealth creation strategies.  What we thought was a wealth creating strategy, mutual fund investing, was really a wealth preservation strategy.  We were failing to produce wealth because we were confused as to how wealth is really created.  We were taken in by the propaganda emerging from Wall Street.  I can not overstress how bad I felt, as one who had formal finance training, to learn that I was making this fundamental mistake.

Since then I have reversed course and concentrated on wealth creation first.  An amazing thing happened.  Our net worth started to accelerate upward.  And last year I decided to create a part of my business dedicated to teaching/helping people do the same thing with their financial lives that I am accomplishing with mine.  This blog is dedicated to offering folks free insight into my thinking on wealth creation and wealth building plans.  I hope the reader keeps in mind that what I am offering is my experience, my intellect, and my research into wealth.  Whether you ever formalize our relationship by joining with me at the Shafer Wealth Academy, or not, I hope my words are used as encouragement to creating a better, more fufilling life based on true wealth relationships! 

Now that Thanksgiving is behind us, we will be hit with a full out attack of the Christmas season.  I put my lights up on my house yesterday!  No matter what your religious preference is, I know this next month is a very stressful time.  It is, of course, made even more stressful by recessionary economic times.  Let us all remember that this is a time of joyful giving.  As a gift to my readers, if you send me a message with your e-mail address, I will send you a copy of “The Best of Uncommon Financial Wisdom,” an e-book created for my impending new web-site!  This e-book is a compilation of the best blog posts, as judged by my readers.  Perfect for those holiday resolutions!



1. Srinu - December 2, 2008

Hi David, I would like a copy of The Best of Uncommon Financial Wisdom.


2. Romina Ziccarelli - December 3, 2008

I would love a copy of The Best of Uncommon Financial Wisdom. Thanks so much!

3. Leslie Herr - December 16, 2008

I would like a copy of The Best of Uncommon Financial Wisdom.

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