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Is your wealth creating system dysfunctional? December 30, 2008

Posted by shaferfinancial in Uncategorized.
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Most people never designed their wealth creating system, it was just brought on piecemeal as they aged.  This is why the system is so dysfunctional for most people.  They bought insurance from the insurance salesman, their 401K is set up by their employer,  their mortgage designed by a bank or mortgage broker,  their cash flow dependent on a series of employers, all brought on-line independently and at different times.  No wonder it is dysfunctional for most people.  At the Shafer Wealth Academy we start from the beginning designing wealth creating systems that adhere to the two main laws of systems.

What are these laws?  The first is that everything is interconnected.  And the second law is that you can optimize individual pieces only up to a point; if you don’t scrap the old system and put in a completely new system ultimately it will always be constrained or limited.

Think about the Toyota Prius designed from the ground up to adhere to one simple principal, make a comfortable car with all the bells and whistles, that optimizes the use of gasoline.  The Prius, like other cars has an engine, battery, brakes, etc.  However it was designed with the idea that everything is interconnected.  It’s brakes not only stop the car, but also creates energy stored in the battery for use.  The engine moves the car but takes its energy from both gasoline and the battery.  The battery powers the lights, radio, windshield wipers, etc. but also powers the engine.  The engine moves the car, but also shuts down when not needed, and switches from electric to gasoline as needed. 

But here is the really interesting part.  What we found out about the system is the driver is a critically important part of the system, more than ever realized.  Consumer reports and other groups that report on actual driving mileage created a huge outcry from the Hybrid drivers when they reported less than stellar gas mileage from these hybrid vehicles.  You see hybrid drivers monitor their gas mileage religiously, so they knew what kind of gas mileage they got and knew that these reports of low gas mileage were simply wrong.  What was happening was that these groups put in test drivers that weren’t hybrid drivers to test the cars.  What we now know is that drivers of hybrid vehicles actually learn to drive efficiently, subtly changing their driving habits as they keep an eye out on the gauges that all hybrids have, telling them about gas mileage efficiency and battery charging.  The drivers had become part of the system, interconnected, and an important part of the gas mileage efficiency story.  In fact, what was found when these hybrid drivers drove non-hybrid cars is they got better gas mileage than drivers who had never driven a hybrid.  When you talk to hybrid drivers they all mention the same characteristic of watching the gauges, especially during the first 6 months of hybrid driving.  A sub-group, calling themselves hyper-milers,  found they could get substantially above the listed gas mileage by fundamentally changing their habits and tweaking the system.  50MPG wasn’t good enough for these folks, as they pushed their machines to 65-85MPG! 

So what does all this have to do with creating wealth?  What we have found at the Shafer Wealth Academy is that we need to totally redesign people’s financial life with a singular goal in mind of producing enough wealth for a comfortable retirement.  We must design this system from the ground up, realizing that it is all interconnected.  But isn’t enough to just design the system, we must put people in the drivers seat and give them the ability to monitor their progress constantly, just like hybrid drivers.  We must make them an integral part of the system.  And it is only then, that we see the progress we are looking for.   It is the human mind that is the key to the system!

Yes, you have to become an active part of your wealth creating system.  There is no choice if you expect success.  Yet, most people fail to realize the two laws of systems.  All parts are interconnected (including you) and you limit yourself if you don’t design from the ground up.  No amount of tinkering with your existing system will get you to your goals.  

At the Shafer Wealth Academy we:

Build a wealth creating system for you from the ground up;

Put you in the driver’s seat;

Create monitoring systems so you can always see how well you are doing; and

Teach you how to tweak the system going forward.

Has anyone else done this for you?  Is your current wealth creating system dysfunctional because it was put together piecemeal as you aged?  Contact us so we can help you create a successful system!

prius

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Comments»

1. Mat Nayie - December 31, 2008

I’m still using my Evo Lancer Viii…
Japanese technology is great than American 😀

Visit my site for more about hybrid car technology


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