Why that’s dangerous and what to do about it.
Do you know how much money is in your savings account today? Are you aware of the current interest rate on your mortgage? If not, you are probably financially disempowered and could be in danger of losing it all.
Let me tell you about financial disempowerment. I am the daughter of a billionaire; I was raised in a household of great wealth and luxury. Yet for all of my childhood and much of my adulthood, I was actively discouraged from learning about budgeting or personal finances.
I was always reliant on others to give me the funds I needed and wanted and I wasn’t taught how to understand or use the power of money. Instead, I was raised with the expectation that I would marry someone wealthy and that someone else would continue to take care of my financial needs. Money was not a source of happiness for me – I felt disempowered, devalued and in a regular state of panic.
By the age of 40, I was a newly-divorced mother of two with $2 million in debt and no understanding at all of how financial institutions work.
For many people trying to create greater wealth, a lottery win would be a dream come true. There is a common point of view that if you are given a large sum of money, you will continue to generate wealth forevermore. However, the sad truth is that 70% of lottery winners lose all their money within five years. Instead of using wealth to create more wealth, most people end up squandering their money and creating poverty.
I often say that it doesn’t matter whether you have been raised in prosperity or poverty – with a healthy approach to money, anybody can create wealth. As the lottery statistics show, an abundance of money is not the answer to wealth creation. Instead, I believe, prosperity comes when you have an abundance of...