True freedom is knowledge that you have options. Wealth gives my clients both self-confidence and self-respect, which lead to empowering self-esteem. We can choose life solutions that match our priorities, values and desires. Those that lack self-esteem believe they have extremely limited options. They have a sense that someone else or something else had decided what’s best for them. That’s why big government, statist, nanny state politics annoys the hell out of me. It hurts people psychologically to feel dependent and powerless over their lives.
We, on the other hand, are self-reliant owners of wealth, functioning at a high level with a strong ability to cope with life’s challenges. Those who are psychologically secure have a powerful sense of individual control over life. Wealth mindset is critical because there are many people who are wealthy by any measure but they continue to feel insecure and unhappy about their lives.
A lot of wealth mentality is established by the fortuity of birth and subsequent inheritance of family values, education, money and other advantages (family connections for example). It’s very hard to overcome a family mindset of financial failure and victimhood; but it can be done. Good wealth psychology is a life lived with balance, responsibility and discipline. Successful and happy households practice long-term restraint with a clear goal oriented focus on life.
The most important aspect of maximizing self-esteem is to recognize that wealth is very much a function of time. We all move along the wealth time continuum through four stages of life.
1) Learning; 2) Creating – Building; 3) Perfecting – Leveraging; and 4) Freedom – Retirement. Each stage is vital to the next and results in increasingly larger wealth holdings. Living paycheck to paycheck your whole life will not result in good self-esteem.
I have clients in all four stages and I very much admire their commitment to 1) Starting life setting forth on an optimistic path of hard work and discipline; 2) Slowly building wealth, income and value to others; 3) Mastering work and becoming independent and responsible for their own financial well-being; and finally 4) Becoming liberated from the need to work full time with the freedom to devote time to an important cause or to explore new places, ideas or vocations.
Maximum self-esteem and positive wealth psychology are essentials to your War Chest of security. Next week we’ll turn to what happens when the self-esteem control knob gets turned passed maximum to the negative, shadowy, dark side of the wealth mindset.