Apr 10
17
There has been a paradigm shift in the new millennium about just what exactly will be considered money from now on. What our parents considered money even forty years ago is now under a transformation. During the past several decades, the change has gone unnoticed by most people. Even with the current economic conditions, and the severe deflation of the US dollar in the past 24 to 36 months, most people have not changed the way they generate money to survive.
And that is just what it is, simply surviving. We were taught to go to school and college, get a good education and a job. Take home a pay check every week. Purchase a home by leveraging your income, Buy that auto that is also leveraged by your income. Fill your home with all the latest in technology in television, audio, and pc’s, and conveniences such as the best stainless steel appliances money can buy. By doing so this would make you very happy.
We were told that job security saving money in your 401K, having an asset like a home and creating bad debt with credit cards would be OK because the value, or money in other words would continue to appreciate, or inflate over time, and we would have an abundance when we retire.
That has proven to not be the case. Money has seriously devalued in the past 24 to 26 months, to the point where in the US, we have had one of the deepest recessions in our history. The sub-prime lenders have devalued our homes to the point where they are worth just a fraction of what they were only a few years ago. Foreclosures are at an all time high. The stock market has lost over 30% of its value for investors and economist are projecting that the return to its height will not be until the year 2032. Nearly three million Americans are out of work, unemployed, with nearly 615,000 job losses occurring in February, 2009 alone.
Major Corporations have disappeared that were thriving in the 1970′s, 80′s and 90′s when we were told to “put your money into them.” They were thought to be secure forever. Many entrusted the likes of men like Bernie Madoff, to invest wisely and secure our hard earned money, until the bust exposed his financial empire as a complete sham. Many baby boomers that were directed to save and invest in the “traditional” methods of growing money and the institutions that were supposed to be secure have now learned they have nothing to show for a lifetime of hard work and a commitment to the system that they were instructed to follow to guarantee their financial future and comfortable retirement..
So what now? The dilemma becomes redefining “money in the new millennium.” Money used to be created out of job security. Well, with the current state of the government, banking industries and corporate downsizing, the recovery is bleak indeed, or may take 20 to 30 years to recover to the boon levels of the 1980′s and 90′s when money was flowing freely. Money in the new millennium will be redefined using four key barometers: cash flow, debt, assets, and knowledge.
Every person that wanted the security of a job that was to provide the money for their use in life will have to redefine the rules for themselves and quickly. The powers that be, are simply putting a band-aid on the situation, not developing long term solutions to solve the problems that were actually created by the poor economic decisions that our political leaders have made in the past 4 decades in the US. And abroad.
The governments around the world are simply tossing tax payers money at the problem making hard earned dollars disappear for the middle class, and allowing the wealthy to actually stay rich. How many banking executives really took a pay cut in 2008 and and 2009. The golden parachutes were still inflated while the average American had to severely cut back on their day to day living, some losing everything that they had worked for, all their lives.
In order to rebuild individual financial security, a person will have to control their personal cash flow. To obtain financial security, personal finances will need to be controlled much closer in the coming decades. To generate more cash as money devalues, cuts will have to be made. Major purchases will have to be delayed. We have already seen these shifts as retailers and manufacturers alike have seen a decline in sales over the past 24 months. Reviewing personal monthly budgets, controlling expenses, and making better fiscal decisions with your income disbursement will assist you in creating a personal financial strategy to build financial security.
Debt must come under control. “Bad” debt must be eliminated and “Good” debt must be put in use to build your future. The home rebate program for new home buyers was extended to April of 2010 to help stimulate “Good” debt and get people back into homes. But what the government did next was to throw a “bad” debt program out there to the people with the cash for clunkers and appliances programs having the American consumer whip out there credit cards and check books for items of no real asset value. Stay away from bad debt. Only use these programs if you have cash in your pocket. Get by with what you have until the recession is over and cash is flowing again.
Assets have shifted and you need to shift with them. Since the early nineties I have watched one asset almost quadruple in value and go almost unnoticed except by the rich. Gold in the early nineties was valued at a around $300.00 each ounce. Today, at around $1100.00 each ounce, gold has climbed in value of 367%. Had you invested $100,000.00 in gold then, you would have a tangible asset worth over $360,000.00 today. A profit of over a quarter million dollars in today’s economy.These types of assets are what need to be invested in, or at least a portion of your personal portfolio.
The last element of re-building your financial security will be the most important for true success obtaining financial security. By embracing this ideology, this one item will help separate you from the rest of the pack. Anyone looking for serious wealth needs to understand that the old traditional teachings are flawed and money today is no longer defined by “Job Security” but by “Financial Security” and to achieve financial security, anyone interested in their personal financial security will need to step out of their comfort zone and gain the knowledge to become wealthy.
Those who strive for financial security must decide to toss away the the old teachings and become a student of the new paradigm shift that money is now evolving in the new millennium. The greater the knowledge you access and skill sets you teach yourself and possess about what money is becoming, the farther ahead of the shift you will be as an individual. You must move away from a dying job driven economy, where there is severe hemorrhaging of the world economies taking place. The governments of the world are struggling to repair the broken systems that they put in place because they are working with old traditional thinking and methods that no longer apply in today’s world. The rules of the game are changing.You must become a student of success and achieve the success as an entrepreneur in the decades to come, to reap the financial rewards in the coming decades.
In order for you to “survive” you will have to decide to move toward a knowledge base resource of how to generate money and develop the skills needed to attract true financial security. With your understanding that money is now knowledge in this information age, you will be able to begin to reap financial rewards by sharing your area of new expertise. When you control the knowledge that you obtain in the process, you will control “money in the new millennium” and your personal financial security will prosper.
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