by T. M. Meek
Why are the vast majority of so-called financial experts likely broke? The answer to this question may also be the solution for so many struggling Americans––especially for the rising generation of younger Americans?
Would it surprise you to know that the majority of Americans are actually broke? If you look at the incomes of Americans in relation to their individual emergency savings there is a direct correlation that shows just how much the majority of us are struggling financially. And what’s worse is just how close so many Americans are to imminent poverty and they don’t even know it. And this includes a large number of so-called financial experts as well as the majority of people that use these so-called financial experts for various types of financial planning.
This next sentence will sound so logical it’s laughable yet few people actually incorporate the logic into their financial lives: The only truly effective way to prevent imminent poverty for someone is for them to create lasting prosperity for themselves - usually by helping others. But if such financial success isn’t earned soon enough for yourself (if you haven’t achieved it already) then just one major disaster can cause you to become totally broke by shoving you or your family into imminent poverty and potentially permanent homelessness.
Every day in the United States people find themselves in the unexpected and certainly undesirable place of being homeless. But there is hope! There are also numerous new millionaires created also in the U.S. frequently enough to give real hope and ultimately prove that personal poverty is largely preventable for most people. That very fear, the fear that smart and successful people do have and should have about becoming homeless and living on the street, is a fear that can be ended with the solution every wealthy person practices: becoming independently able to handle every kind of emergency possible.
You’ve probably been told to prepare for emergencies, right? Although it can be hard to believe any major catastrophe will really hit, you’ll need to be ready with every wise emergency supply sooner than you may believe. Most people that do have a sufficient emergency reserve are glad to have it when disaster does strike. And when disaster strikes, the people that are the most afraid and the most vulnerable to suffering are those that didn’t get prepared before the crisis occurred.
Yet unlike in Noah’s day when there were no indicators of rain when he built the ark, we have indicators all around us of what’s coming: a repeat of a major financial collapse. It’s happened several times before throughout history so we can recognize the signs if we’re able and willing to understand them and face them. Unprecedented national debt combined with being off the gold standard will prove soon enough that a major economic storm is in the making for America.
And guess which people are the best prepared to not only survive such a storm but even thrive in many ways during it? Those that earn enough money to more quickly set aside sufficient emergency reserves to be prepared for basically all of the possible emergencies life can throw at them before most of them happen. And who’s the least likely to be prepared for emergencies? Those people that are broke because they don’t earn enough. So which is better? To earn enough to be prepared enough more quickly? Or to be broke and unprepared and living in fear when disaster actually hits? The answer is obvious: it’s better to earn enough and be more sufficiently prepared faster.
Those that earn enough have the ability to be truly self-reliant in every way needed for emergencies. Although the list below covers several topics, true “financial self-reliance” offers the overall ability to sufficiently fulfill every kind of emergency reserve needed. Here’s some vital self-reliance (or financial self-reliance) categories that people may consider having enough to see them through for at least one year (without needing or being able to buy) in wise emergency preparedness:
[Note: These could be spread out or included under the umbrella of other emergency savings subjects such as saving for living expenses during a job loss, major medical savings, property damage related savings and other subjects. This is not a complete list.]
Food self-reliant: They have enough non-perishable food (including baby food for their infants), vitamins and non-GMO fruit and vegetable seeds for gardening and/or farming set aside to last them at least a year to feed everyone in their family sufficiently well according to their individual health and dietary needs.
Water self-reliant: They have their own clean water supply and/or the ability to purify large amounts of water such as for a year’s supply of water for every individual in their family.
Clothing self-reliant: They have a year’s supply of clothing (shirts, pants, dresses, socks, shoes, boots, underwear, belts, coats, baby clothes etc) for winter, summer, spring and fall for everyone in their family and the especially prepared one’s have sewing machines (at least one back-up machine and spare parts for repairs in case the first one breaks) and several spools of fabric and thread and various knitting supplies for making clothing, blankets and bedding supplies.
Personal Safety self-reliant: They have the ability to defend themselves from unlawful intrusions and various crimes (such as guns and the ability to make their own ammunition and/or other weapons and technology to protect their family and home). They also have other safety needs ready such as emergency lighting (candles and/or oil lamps, flash lights etc), fire extinguishers, fire escape ladders, boards for windows in the event of a hurricane, a basement or tornado shelter etc.
Sanitation or Personal Hygiene self-reliant (see also Waste and Garbage self-reliant): They have the ability to clean themselves and their supplies, such as a place to shower and use hand soap and sanitizer, shampoo, laundry detergent, dish detergent, deodorant, towels, clean underwear, diapers and baby wipes etc for babies, sanitary pads, toilet paper, tampons and cleaning supplies to wash and sanitize or disinfect dishes, food preparation areas and living spaces along with a year’s supply of disposable plates, cups, bowls, napkins, forks, spoons, knives, paper towels etc.
Communication self-reliant: They have their own cell phones, corded phones, computer(s), fax machines, walkie-talkies, cb radio, emergency news radios with sufficient power sources and most needed spare parts for repairs along with basic pens and plenty of paper and envelopes to use if the internet is down or if no electricity is available and no emailing or texting etc is possible.
Electronically self-reliant: They have their own laptop(s), computers, phones, e-reading devices, media players, power cords, extension cords, chargers, lighting and lamps, microwave ovens, toaster ovens etc and the power generators to use them. Again, they’ll also have spare parts for repairs.
Medically self-reliant: They have a well supplied first-aid kit adapted to their own needs that also includes a year’s supply of any prescription and OTC medications they need.
Shelter self-reliant: They do not have any mortgage debt; they actually own their own home free and clear and are thus not at risk of being obligated to suddenly satisfy, by non-monetary means once the U.S. dollar becomes worthless, the force of government that likely backs the mortgage debt owed. Their own personal wealth also provides them the opportunity or freedom to have mobile shelter that gives them the freedom to pack up and move anywhere anytime and have the kind of good quality camping gear that would allow them the ability to live and survive fairly well in practically any season or climate.
Transportation self-reliant: They do not have any automotive debt; they actually own their own car(s), trucks (including any large trucks and/or eighteen wheelers, such as for moving and hauling), trailers, RV’s and /or ATVs free and clear and are thus not at risk of repossession. They can go anywhere, anytime.
Waste or Garbage self-reliant: They have their own trash cans and temporary toilets (such as a large painters bucket, trash bags and something like cat litter or a way of recycling human waste and other waste)
Energy self-reliant: They have a sufficient supply of generators, batteries, coal, oil, gas, chopped wood and/or any other needed fuels that will provide for the energy needs of their home, car(s), law
n mowers, flashlights, emergency radio(s) etc.
Real Money self-reliant: They have enough real money (physical gold or silver maybe as actual coins, bars and/or jewelry protected in a safe or other safe place they have fairly quick and easy personal, physical access to) to use to keep going when all paper currency becomes worthless - including the U.S. dollar when hyperinflation begins. And while the dollar still has some value, they can be economically independent enough to set aside a sufficient financial savings for a whole variety of other needs (major medical, legal, property damage, personal security to prevent becoming a victim of various crimes, cyber security to prevent becoming a victim of various digital crimes, job loss etc).
Skill-set self-reliant: They know what their talent(s) are that they can develop and use to earn money and provide sufficiently for their own family or for themselves if they are not married and have no family They are well educated (beginning with the ability to read and write), have a variety of learning materials, books and skills to work with and are able to work and provide a high quality service to be compensated for. This includes the vital skills of gardening and water irrigation (see food self reliance and water self reliance).
Organizational self-reliance: They have the supplies needed to maintain order in their home and place of work, such as boxes, boxing tape, plastic bins, folders, paper, shelves, furniture, moving dollies, dishes etc.
Recreationally self-reliant: They have a modest supply of a variety of wholesome recreational activities to choose from to rest from the stress of living through a major disaster, supplies such as board games, card games, some sports equipment (such as baseballs and bats or Frisbees or volley balls or soccer balls) life vests, swimsuits and inflatable tubes for swimming as well as emotional support through special blankets or stuffed animals or crayons and coloring books and other toys for the little ones, painting or crafts supplies for older artists (or software and computers for graphic artists), books and novels, music either through mp3s and media players and/or musical instruments (such as a violin, cello, xylophone, drums, harp, guitar piano etc). They may even have DVDs and the ability to watch DVD movies.
Charitably self-reliant: They are independently empowered with surplus emergency items to freely help– -without needing permission from someone in authority above them or reimbursement–such as helping a loved one with an expensive unplanned need and/or to help others, such as total strangers and not just friends or neighbors that are in need - if they choose to be kind enough and non-judgmental enough to do so. They use money from their own pocket to help and they do so of their own free will.
Yet all of these categories may be underestimated or unfulfilled by those that do not understand the potentially life-saving differences between lasting prosperity and imminent poverty.
To understand the differences between lasting prosperity and imminent poverty we have to ask again a question that is hard to ask.
Why are the vast majority of so-called financial experts likely broke?
Again, the answer to this question may also be the solution to ending the financial struggles for Americans –– especially for the rising generation of younger Americans.
The shocking reality behind the error of so many financial advisors is that far too many of these so-called experts don't truly understand or teach the math that makes the biggest difference between lasting prosperity and imminent poverty or "The Financial Math of Hope vs. Despair."
Understanding the Financial Math of Hope vs. Despair first requires a financial reality check in our own budgets.
Most of us have been taught that the truly successful always pay themselves first in order to have the success and prosperity that is the American Dream. Yet too many of us put the principle of saving for our present and future security last to linger largely unpracticed at the bottom of our budget. This is a mistake of catastrophic proportions. And if you don't believe it, just take a look around at the financial challenges of your neighbors if it's not already happening with yourself.
But what about the so-called financial experts? Are they struggling too in this economy? Chances are, most of them are not only struggling, but they're trying not to let anyone know so that their own embarrassing secrets of inadequate understanding and planning aren’t revealed to humiliate them in front of the world. But is their lack of understanding really their fault? Or is some larger, unseen trend of false financial doctrine making fools of us all?
Although we may not want to admit it, the traditions of our fathers in financial matters have steered us away from the tradition of our more successful forefathers in matters of financial wisdom and tradition and there is strong evidence that confirms that this is a primary reason for our latest financial decline.
So let’s look at what is most likely to prove to be a significant step to a correct understanding of some lifesaving financial math of hope by first understanding the despair.
In the following illustrations, we're going to pretend that we all do everything right in our financial life (or so we believe). We're even going to pretend that we're all financial pros and that we're earning about as much as some financial advisors earn. We're all going to pretend we earn $75,000 income. This should help us all to see the shocking problems that will then help us to realize the best solutions.
How much will $75,000 provide for only one adult who saves first and lives extremely frugally? Let's do a financial reality check and take a look at “The Financial Math of Hope vs. Despair”: (See next page.)
The Financial Math of Hope vs. Despair
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