What is a Eben Pagan Money Psychology for Cheap?
Here’s how the super rich avoid it (and how you can too)
Can you relate to these (true) stories?
“In late college and my first year or so in New York, I wasn’t making enough money in the industry to pay for anything besides rent, so I used credit to pay for things I needed: food and beer. I maxed them out — even though I gave myself a small credit limit — but it took me a while of ignoring debt collectors to actually get around to paying more than the minimum payment…”
— AC
“I’m pretty much out of credit card debt, but my credit is shot, which means I still have to ask mom and dad to co-sign for leases or, say, a car loan.”
— AC
“I hate checking my bank account because it makes me anxious. However, there are certain services that bill me automatically. Of course, I forget when that happens, so I end up automatically renewing, for example, my Zipcar membership, which I don’t really need anymore.”
— SB
“When I first moved to LA from Boston, the month after I turned 21, I hardly accounted for the additional costs of my car.”
— AK
“I cashed out my 401(k) when I was 25 to pay off a fender bender instead of exploring other options.”
— CS
Source: Huffington Post
Why Most People Are Destined To Stay Poor
Why do most individual investors fail to make money? Why do most businesses fail? Why do most people consistently make bad decisions with money even when they know they shouldn’t…
Turns out the reason is not what most people think…
We Are Literally Hardwired And Programmed To Be Poor
Modern evolutionary psychology in cognitive science are showing that we humans are not wired to succeed in the modern virtual reality that we live in.
We are literally not wired to handle money correctly. Money is a relatively new and abstract concept to us. It’s not something that we evolved over the first billion years of evolution.
When it comes to money and resources, the underlying animal drive is to get and consume. Get resources and consume them now.
We don’t instinctually understand money and that’s what prevents us from holding onto it.
On top of that, most of us also have our Early Childhood Programming from our parents and our friends and because most of us grew up in scarcity belief systems, we inherited what they call a “Poverty Mentality”.
It’s these two forces…
- Our natural wiring and
- Our childhood programming that result in most individual stock market investors losing money, most businesses failing, and most of us not achieving the success that we want with money.