Why we are financially like we are?
In world there are three group with respect to financial success (well-being),
- 10 % Population (Group-1, having maximum wealth)
- 20 % Population (Group-2, having moderate wealth)
- 70 % Population (Group-3, almost NIL wealth)
Guess what, Minimum population group own maximum wealth!!! And not only they own maximum wealth, but maintain this legacy year on year generation after generation.
In fact, it happens in all three group, they pass almost similar legacy to their generation!!!
Do you ever think what is the reason behind it?
This hold true at each and every location, be it a society, village, town, city, state or country Less than 10 % of the people generally own more than 50 % total assets combined.
The kids of rich family generally do better financially compare to other two group, even though they may not be educationally smart. Same is the case of other two group, their kids generally do better but remain in that group only most of the time. Here we are not saying that people do not progress between groups by improving their financial condition, they do but that percent change (w.r.t. no. of person) is very less, probably less than 1 %.
Why it’s so, why people keep on remaining in same group year on year? It’s not they do not work hard, do not have desire to come up from their current financial situation, but still after all the effort they remain in same bracket. They take several guidance from peers, family members, friends but gain no benefits. All these effort goes in vain.
Many a time middle bracket group think that I am smarter than the top bracket kid, I will earn more, they do earn more but only to compare with their parents but rarely more than the top bracket group. We determine to do hard work but hardly it turns to give us a financial success. It’s said that If Hard Work is the Key to Financial Success, then the worker engaged in making building might have been the wealthiest person in the world. We all know the result! People do not understand the real logic behind these financially situations. These situations are not the result of few days’ work.
I have seen so many people like following, but somehow managing their financial life-
- Very smart, intelligent in education but could not able to manage their finance
- Started business to create fortune but could not get success
- Got one time fortune, lost it all in 1-5 years period
One more aspect is that we ignore our financial health, we many a time boast that Money is not priority in my life. But is it true? It may be true for the people who are already having good amount of money in their kitty.
We have done research on this topic, why people’s financial condition remains same? Is there any scientific reason behind this? If yes what is that? Do we have control on those reasons?
I am going to give answers to each of above question, if you are ready to change your financial life. Are you willing or committing to improve your financial life? Why two almost similar words (WILL /COMMIT)? There is huge difference between these two words, willingness is something we wish and commitment is something we devote our self.
It all make a life changing impact when one COMMIT something to happen in one’s life. With commitment come the body language / mental state / action of each cell of body / action of each neuron of mind.
As now we have committed to improve our financial life, so it’s time to have answer to some of the basic question. Think like, why a financially successful family kid grow-up and manage the business later. Even through he/she may not be academically smart, but still they manage their business well. The root cause if Deep-Rooted Beliefs which are stored in their mind govern each aspects of their life including financial. They have seen their parents/ uncle /Aunties/Friend in financial abundance from birth.
Young children carefully observe their environment and download the worldly wisdom offered by parents directly into their subconscious memory. As a result, their parents’ behaviour and beliefs become their own. The Deep-Rooted Beliefs (either with Financial Abundance or Financial Scarcity) governs our life. We hardly have any control on our life, we try to understand this but lost hope in trying as we hardly get positive outcome. This the core answer, which is self-explanatory on why people remains in same group year on year in spite of putting best effort.
If the beliefs are dragging you down instead of lifting you up, resist the urge to go back on auto-pilot. Instead, take a closer look at your self-sabotaging beliefs by asking yourself:
- Do I still believe this to be true? If so, why?As you dig, you may find something in your past that offers clarity. For example, maybe you grew up in a home where your parents always struggled with money, so you believed “money is always tight.” As an adult, you now earn a good living, but you still believe money is always in short supply, so you might spend it recklessly or go into debt needlessly. Now that you see this, you can exchange the “money is always tight” belief for a more appropriate belief for who you are today: “I make a good living and I’m good at managing my finances.” Remember: everyone acts from what they believe to be true. If you think money is always going to be tight, that is what you’ll create for yourself in your life.
- Am I willing to at least try to start affirming an opposite belief? For example, instead of continuing to affirm “My life is out of money always” start affirming “My life is full of abundance always” Repeat it over time and you will begin to feel a shift in your beliefs. I know this step was super-important for me in helping me break up with some of my more deeply entrenched negative beliefs.
- Could this belief come from a past event that I miss-assigned meaning to? Example: Any of your family member /relative / friend said something negative about money as Money does not grow on Tree; Money make people bad; You will not have good friends when you have money, Money should not be in your priority, Money cannot bring you happiness etc. Any of such single sentence, which you start believing is sufficient enough to ensure you to remain broke lifetime.
To sum up, the good news is that once you identify a limiting belief, you can release it and even exchange it for a more self-expanding belief that will serve you better.