The Source of Wealth…
If they are effective observers of human behavior, financial professionals soon become aware that there is far more to wealth creation than the financial planning books teach. That’s part of the reason that, despite their prodigious knowledge, many financial planners and advisers are in much worse financial shape than their clients.
It also explains why a DALBAR study revealed that the average investor earned only 2.57 percent annually on their investments between 1984 and 2002, while the overall stock market, as measured by the S&P 500 index, averaged 12.22 percent. Clearly, there is a grave difference between knowing what to do and doing it.
The flaw in the formula is this: whatever we want to believe, we are creatures of emotion. Knowledge and information will do nothing for us (except to provide us with more knowledge and information, and perhaps a measure of self-loathing that we do not do what we aim to do) if we don’t align our emotions with our objectives.
In the following exercises from a series originally presented at Unity of Vancouver, we address the underlying issues of wealth creation — the cornerstones. We answer the fundamentally important questions:
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What is it that allows people without traditional advantages to succeed, while other people with education, family wealth and other obvious advantages fail?
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What is it that allows us to use the information and knowledge we have to make good decisions?
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What behaviors and habits separate the prosperous from those whose lives are defined by their struggle to stay afloat financially or who are chronically anxious about money no matter how much they have?
The answer to all of those questions — the four cornerstones of wealth creation, are — desire, creativity, purpose and contribution. The following exercises are designed to help you cultivate these powerful forces in your life, and to bring your dreams to fruition.