Wednesday, July 17, 2013

Creating Wealth Is Easier Than You Think: Learn To Overcome Parkinson's Law


Parkinson's Law says if you give a person a job to do and tell them it has to be done in three days, you can bet it will be done late on the third day. You can assign the same job to another person and allow 30 days for its completion, and it will take 30 days. Another example of Parkinson!s law is, “expenses rise to equal income.” In other words, when a debt is paid off, the freed up cash flow is quickly absorbed by a new definition of necessities and you are no better off than before.  

TO BE SUCCESSFUL FINANCIALLY, YOU HAVE TO OVERCOME PARKINSON'S LAW. START RE-DIRECTING THE NEWLY CREATED CASH FLOW TOWARDS SAVINGS.  

Once you have this ability to save more, the first logical question to be asked:  Where is the safest place I can save money that will give me access to it as I need it?  The second question should be: AND what other benefits can I get for parking my money there?  The answers to these 2 questions can be found by reading Becoming Your Own Banker by R. Nelson Nash or Pamela Yellen's Bank On Yourself.  

Accumulating wealth isn't rocket science (or theoretical physics if you're particularly extra nerdy), you just have to change how you've been taught to think about money.  How we think influences everything we get in life.  

Have a car loan or credit card debt you'll be paying off?  Did you get a raise at work?  There's a lot to be excited about.  I'm convinced you'll celebrate even more if you can add some long-term thinking into your planning.

To learn more about you can best overcome Parkinson's Law and start building wealth without risk, please consider purchasing the above mentioned books.  As an authorized Bank On Yourself Advisor, I can help answer your questions and fill in the details for a plan that's right for you.

John Montoya
john@jlmws.com
925-386-6639

No comments:

Post a Comment