The biggest financial mistake you can make is to blindly trust an “expert” or financial institution when it comes to your money and future.
Not only is the expert almost certainly falling for the same myths and making the same mistakes in his own personal finances, but in addition he or she is working for an income that is hourly based or even worst on commission. This means their incentive is to stretch the work out or sell a product or service.
Consciously or unconsciously, they do not want a speedy resolution to the issue, because then they’re out of work. That is to my mind one of the main problems.
Another is that someone who understands the Formula for Riches™ is no longer a slave to billable hours, but the “expert” is. So how much does he or she really know about financial freedom?
There are people who understand this and still sell their time by the hour, but you’ll pay ten times or more for their time. And before you agree to do this, firstly you need to understand the value that you get for that extra money, and you need to know how to measure it … and secondly you need to know that you could easily be led astray if you do not know how to assess the value, or if there is no comeback or guarantee.
What does this mean? It means that the less you pay someone for his or her time, the less value there probably (not definitely) is in it. The ultimate example is the “free” financial planning appointment, that ends up costing an thousands of dollars in hidden fees and commissions for the average policy you buy through a financial institution,.
Then there is the issue of trust. Experts give advice but they have no risk of losing anything. They have no risk as long as they obey the rules and regulations within their profession and their code of conduct. That code of conduct is controlled by the financial institutions themselves.
A code of conduct is structured in such a way as to protect the financial institutions first and foremost, and then the “expert”, and finally, bottom of the list, the client. But the client is let to believe that he is protected.
Why? Well, think about it. Who tells you about this wonderful code? The consultant? The personal finance section in the newspaper? Advertising? All of these are mouthpieces for the financial institution. Another way to make sure we believe their version.
What about our so-called independent educational system? Why does it not teach us the principles of how to get our money work for us?
The truth is that financial syllabus content is influenced by the institutions too, just as what doctors learn is heavily influenced by drug companies’ priorities.
Why do you think corporates sponsor the training of professionals and experts like doctors, accountants, etc?
The same reason why doctors don’t learn about magnesium as a cure for depression is the same reason why, in school and in university, you learn everything about money – except the truth about how to make it.
By following the system we can obtain degrees, knowledge and jobs but not the basics we all need in order to handle our own money so that we can become financially independent.
I have seen how educated employees can manage millions when they handle their employers financial affairs but when it comes to their own personal affairs they are total failures.
So what the educational system does is to train people to work in a specific profession?
People work in that profession to make a living. If you have to work for your money you are a slave to your profession and therefore a slave of the system. You cannot be financially free if you stop working and have no income to maintain your standard of living.
If our educational system does not teach us about finances and how to get our money work for us, who does?
What about the financial institutions who are mainly represented by the banks and insurance companies? Do they teach us about money?
Everywhere in the world you will find that the common interests between these two industries are so big that either a bank group owns an insurance company or an insurance company owns a bank – or at least has a major shareholding.
The root of this evil is because we do not want to take responsibility for our own actions.
The financial institutions merely use this failure to take responsibility to make money. They build on it, encourage it, reward it (“you are making a wise decision to go to the experts”).
The bottom line is if you do not take full responsibility for your own life and financial future, no one will. It is a very sad fact that the only loser in the game of financial wealth creation is the ignorant person who does not want to take responsibility for his or her own life.
People are afraid to get out of their comfort zones, to learn how money works, to take the responsibility of applying what they have learned, to get their money to work for them.
Now that you know about it, how can you overcome this problem?
A good way to start is to join the Wealth Creators University. For more information visit