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What are the 5 Levels of Wealth?

November 6th, 2009 Leave a comment Go to comments
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money_treeAll people, everywhere on this planet, have some kind of relationship with wealth and money.  Our thoughts form that relationship.  Our thoughts range from “money is the root of all evil” to the people who are very comfortable with money and it flows to them easily.  How do we develop these thoughts that have such an impact on our relationships with wealth and money?

When we are born, we don’t have any relationship or thoughts about whether money is good or bad.  Money is unimportant to us.  We are focused on our creature needs; food, sleep, comfort and elimination.  As we grow older, we can’t help but form beliefs regarding wealth and money.

Humans have a way of learning.  It is called mirroring.  When we watch someone else do something our brains fire the same electrical impulse as the person actually doing the task we are watching.  This is how humans learn.  When we listen or watch our parents, grandparents, and other people in our environment react to money we pick up on their feelings and attitudes towards it.  As time goes on, we have watched enough people’s relationship with money that we adopt our own relationship.  We do this with everything, not just money. Our beliefs become like a patchwork quilt that we have put together from our environment.

Most of us don’t understand how money works.  Because we have to have some kind of working model with money We think we understand it. But, we don’t.  It is like looking so closely at a tree that you can see the bark, the bugs making there way around the tree trunk, and anything else that tree may have on it.  We are looking so closely at the tree that we can’t see the forest is is standing in.

Money is like any other game.  You can’t expect to win a game unless you understand the rules.  There seems to be 5 levels of understanding of wealth and money.  Often times, we get stuck in one of these levels and we never progress to the next level until we break free of our current paradigm and understanding.  The 5 levels are:

1.  We are focused on money because we “need it”.  This is a more desperate level.  We believe we need money to meet our needs such as food, clothing, paying our mortgage, etc.  We are approaching money from a stand point of lack.  Sad to say, most people get stuck in this level.

2.  We understand that we need to make some money.  Our value of money is that we exchanging time for money.  At this level we believe that without the time/money exchange we can’t have the money.  This is characterized by the having a job that pays us money for the time we spend doing that job.   This level includes not only a employee status, but the self employed such as a doctor, lawyer, hair stylist, etc.  If they go on vacation or they are ill, their earnings stop.

3.  This level is where we understand that we can have money by developing a business system that makes money separate from us.  It doesn’t hinge on the owner of the system putting in “time” to receive money. This level can be franchise owners, multi level marketing, business owners with employees, etc.

4.  The investor level is the level where we understand that we can invest money into systems that make money.  We can invest in things that appreciate and give us cash flow from our investments.

5.  This is the level of wealth creation.  We are creating new things.  Our creations grow in value and throw wealth off as a byproduct as it grows. The creation has the possibility of living beyond the creator and generating wealth for future generations. 

Whatever our understanding of money and wealth it can grow and change.  As we go through life we continually develop new beliefs that fill in our patchwork quilt of our life.

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  1. November 6th, 2009 at 17:15 | #1

    I was on Yahoo and found your blog. Read a few of your other posts. Good work. I am looking forward to reading more from you in the future.

    Tom Stanley

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