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The Money Making Mindset

Oct 19, 2007
Most entrepreneurs grew up learning about money management from their parents. These people started their first businesses before they graduated high school, and rarely had time to stop building wealth to go to university or follow the crowd. Everyone has seen them, the family sitting at a restaurant while dad is using the son's French fries to explain a marketing strategy from a third year BS program.

These kids learn the basics of compound interest, investment strategies, and building portfolios, the things they are not taught in school.

The rest of the population grew up in homes where father's income was a well guarded secret. When the child asked to buy something, instead of receiving a fiscal responsibility lesson, they were met with a blatant 'money don't grow on trees' slam. The average child graduates high school, and even university, without understanding how much taxes they must pay, the annual cost of living, or even the real numbers behind inflation.

At the most, these kids are given an allowance and told to 'make it last' without ever being encouraged to save. This has created the 'consumer culture' and the 'debt culture.' These kids grow up believing money is good for one thing - spending. They also grow up believing that you borrow money for what you want, and worry about paying it back - later.

There are two ways to identify each of these groups. In the first group, children earn the money needed for their education, or, their grandparents pay for the grandchildren's education. This gives the parents another 30 years of compound interest, and prepares them to support their grandchildren.

The first group includes multiple success stories in their family. There is very little bickering about wealth, it comes, it goes, and it can be generated again. There is no fear of poverty because the estate, or capital, is never invested. Only the interest is invested, and time is invested instead of money.

The second group is dominated by parents who pay for their children's education. When asked why, they merely comment with something ambiguous like 'that is how it is suppose to be done.' There are no entrepreneurs in the family, except a cousin who invests in every 'get rich quick' scheme he finds, or an aunt who buys lottery tickets.

Children party through school or work at the corner store, never realizing the potential income they could be using if they exerted a little creativity and stepped 'out of the box. When not working, these children are doing one of three things: entertaining themselves, socializing, eating.

Redefining Your Future

The Money Making Mindset can be learned in childhood, but it can also be learned as an adult. It may take a little tightening to correct mistakes made in the past, and it may require a little patience until short-term debts are paid, but it is possible.

A life coach is the quickest and best way to reset a person's basic mindset. They work with clients daily, helping to change their priorities and values.

Self teaching is also a good method, but requires major determination and patience. The fact is, no one needs to accept the fact that they cannot generate wealth.

A mentor can also help, if available. Mentors differ from life coaches in the fact that they often create a community and offer a package of products that can be used to generate wealth. They are also big on education and enlightenment.
About the Author
Mark Walters is a third generation entrepreneur and author. He offers free training and investing videos designed to speed you towards financial independence at http://www.cashflowinstitute1.com/Articles.html
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