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             31 October, 2020
 

    
Category:  Articles » Finances » Personal-Finance

 

Why You Need to Establish Your Personal Economy

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         Views: 1521
2010-02-03 07:03:41     
Article by Charles E Wilson

Consider the concept of your "Personal Economy." What images does this term conjure up? Many would jump to the conclusion that it revolves around being your own boss, bringing in huge sums of money per month, etc. I'm not going to discount that kind of thinking entirely, but there is a lot more that goes along with it, which I'll address in a second.

The Institutional Economy that is predominant today began to evolve with the Industrial Revolution. Institutions grew and developed acting as lenses, concentrating resources - including natural, financial, productive (both human and mechanical), and intellectual resources - to create leverage and increase output and productivity.

These institutions fall into four main categories, Corporate, Financial, Media and Governmental. Together, they have made Institutional Capitalism one of the most positive forces in human history, contributing to ever increasing advances in technology, medicine and an overall betterment of the human condition.

However, as the Institutional Economy has evolved it has placed ever increasing constraints on individual freedom and liberty. First, in order to participate, we have to relinquish control of our time in exchange for a paycheck. Then the corporations can tell us where we have to be, how long we have to be there and how many years we need to follow the pattern. The other side of this trade was supposed to be stability and security during our career and then a comfortable retirement. Recent history has proven this to be a false assumption.

Additionally, Institutions have made it "easy" for us to have all we want as soon as possible. Corporations manufacture the products the Media tell us we need and then the Financial Institutions figure out how we can get it all on a payment. As a result we pay multiples more than the value of what we purchase. In the end we transfer a mind numbing amount of our wealth right back to these Institutions.

Too many people today make a lot of money, only to lose it all just as quickly thanks to the "Have It Today, Live Life On A Payment" philosophy. This includes highly educated, successful professionals - doctors, attorneys, executives, & bankers. And when they are in that position, they have relinquished 100% of their individual liberties to these Institutions. It's disheartening.

As long as any institution has control of your cash flow - large corporations, financial advisory firms, governments or their agencies, unions, lobbying groups, etc - they have the ability to limit your freedom. The answer is to create a vibrant Personal Economy built on three main principals:

* Develop a financial offense which you alone control and which generates significant cash flow, enabling you to lead the lifestyle of your choosing, on your terms.
* Successful "Personal Economies" are grounded in knowledge of personal economic principles and understanding how to apply them to your unique situation. The goal is for you to accumulate and shelter wealth, ultimately creating your own secure legacy from which your family will benefit for years to come.
* Finally, you need to be proactive with your efforts and once you experience success, share both your knowledge and resources in ways that can help others through the same obstacles you encountered. Think of it as planting seeds for others to harvest instead of storing all the grain for yourself.

The good news is that the Institutional Economy has also provided the means for motivated individuals to do just this. Communications technology and the power and reach of the Internet have made it possible for individuals to build businesses capable of delivering goods and services 24/7 to virtually anywhere in the globe. All with a capital investment of only a few thousand dollars.

It is not necessarily easy, but the barriers to entry that insured the survival of Institutions in the past no longer exist for nimble, resourceful entrepreneurs. The Age of the Personal Economy has arrived.

Chip Wilson is an author, coach and entrepreneur. After graduating from the Harvard Business School in 1992 he had a successful 15 year career on Wall Street. Ultimately Chip left the corporate world to help other entrepreneurs achieve success and freedom by building their own Personal Economy. He believes in the principles of integrity, passion for success and personal accountability. He also believes in the fundamental truth that that each ordinary individual is capable of extraordinary accomplishments.

Specialized in: Entreprenuership - Online Marketing - Home Based Business - Online Business - Direct Sales - Mlm - Financial Literacy - Personal Financial Management - Stewardship
URL: http://chipwilsonsblog.com
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