PART 4 of 10
Have you ever heard the phrase “There is more than one way
to skin a cat?” As a child, I thought “How cruel. Who would ever what to skin
cats?” I thought that because I was familiar with the feline version of “cats,”
but I was not familiar with the aquatic version. It wasn’t until years later
when I was introduced to fishing that I learned that “cats” was short for
“catfish.” Then it all made sense.
My singularity of thought that “cats” were literal felines
kept me from understanding the principles of the statement. The principles: You
can accomplish the same goal many different ways and doing something
differently does not make it wrong. It just makes it different. Those principles
are very applicable to personal financial management. You can accomplish the
goal of building wealth many different ways and if what you are doing is
different from the experts, it doesn’t mean you’re wrong. You’re just doing it
differently.
Generally speaking, personal financial management has
certain principles that lead towards wealth. Budget your money, have an
emergency fund, and don’t spend more than you make. All of this is common
sense, but it must not be so common because so many people are living paycheck
to paycheck.
In an article published on August 24th, 2017 in
the personal finance section of cnbc.com, statistics showed that nearly 10
percent of those making $100,000 or more say they can’t make ends meet. Seriously?
A six figure salary doesn’t exempt you from struggling financially? Well, who
knew?
The article went on to say “Seventy-eight percent of
full-time workers said they live paycheck to paycheck, up from 75 percent last
year, according to a recent report from CareerBuilder. Overall, 71 percent of
all U.S. workers said they're now in debt, up from 68 percent a year ago,
CareerBuilder said. While 46 percent said their debt is manageable, 56 percent
said they were in over their heads.
About 56 percent also save $100 or less
each month, according to CareerBuilder.[i]
So, if common sense states to have a budget, an emergency
fund, and don’t spend more than you earn, why do we have statistics such as
those stated in the article? I suggest that most people learned one way to do
personal finance and have never entertained the idea that maybe there was a
better more effective way. Even when statistics proves that we don’t know what
we are doing, we still continue to do it, because it is all we know.
Well, I have made it my person challenge to change the way
people “do personal finance.” I have develop, not a plan, but a strategic
process that if applied, will radically change the way people do personal
finance. I have merged my study of martial arts and personal finance to create
an innovative process for personal money management. The Financial Black Belt’s
Financial Self-Defense Training Series teaches individuals how to overcome the
roadblock of singularity.
When a perspective student enters a Dojang (a term used in
Korean martial arts that refers to a formal training hall) for the first time,
he or she is a no belt. The instructor is usually a Fifth-Degree Black Belt
typically referred to as a Master. He or she is a master because he or she has
been training for years. I am fortunate that my instructor, Master Joe Borucki,
is a Seventh-Degree Black Belt, who has been studying for over 25 years.
No student would enter the Dojang thinking that he or she
knows more than the instructor. I think the reason why 78 percent of full-time
workers said they live paycheck to paycheck, 71 percent of all U.S. workers
said they're now in debt, and 56 percent also save $100 or less each month is
because they believe they are the “master.” They have entered the Dojang of
financial management believing that they know more than the instructor.
The Financial Black Belt’s Financial
Self-Defense Training Series applies the same discipline and training
techniques as martial arts. Belts are awarded to those who show a level of
proficiency in the different financial milestones associated to each belt. Even
after a student achieves the level of First Degree Financial Black Belt, he or
she still does not know more than the instructor.
In Part 1 of this series, I explained how to overcome the
roadblock of financial ignorance.
In Part 2, I talked about overcoming emotionality.
In Part 3, I discussed overcoming procrastination.
Overcoming Singularity requires you to change the financial behaviors that have
become ingrained in your belief system which rejects information that does not
align with what you have learned about finances. Those who have become
statistics as reported by Jessica Dickler, need to do something radical to
improve their financial reality.
The answer to singularity is plurality. Singularity, as it
relates to personal financial management, is the state, fact, quality, or
condition of having one source of behavior. Plurality is the state, fact,
quality, or condition of having multiple sources of behavior. I began with a
popular saying and so I end. When all you have is a hammer, every problem looks
like a nail. Personal financial problems are not all nails. If you want to
build a house, you need more than a hammer.
[i]
https://www.cnbc.com/2017/08/24/most-americans-live-paycheck-to-paycheck.html
Most Americans live paycheck to paycheck by
Jessica Dickler Published 10:15 AM ET Thu, 24 Aug 2017 |Updated 8:17 AM ET Wed, 30 Aug 2017
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