Typical Financial Planning vs. Prosperity Economics

The Prosperity Economics Movement is a wholesome and positive remedy to the limitations, guesses, and fear-based typical financial planning.

On the one hand, the typical financial conversation holds an underlying opinion that you should give your money to someone else more qualified than you, put it aside for the future, not touch it or use it now, and hope things work out.

On the other hand, the abundance-centric, value-creating, opportunity-seeking perspective of Prosperity Economics puts money in your hands today.  It validates that you’re the best person to be in control.  Prosperity Economics relentlessly steers towards financial freedom by prioritizing cash flow over accumulation.

Refreshingly, it empowers you, the individual, with maximum control and certainty.

The prosperity perspective is a departure from the status quo of today and a return to the traditional way of thinking about and handling money.  Similar to how people built wealth before the 1980’s, it encourages you to rely on your own business and put money in tools you know and control like savings accounts, whole life insurance policies, cash-flowing investments, and precious metals.

Table of contentsTypical Financial Planning vs. Prosperity EconomicsWhere Your Mindset Fits into the Cash Flow SystemHow’s Your Thinking?In Part 1In Part 21) Living Only on Interest vs. Spending and Replacing Principal2) Money Stays Still vs. Money MovesTypical Financial Planning Isolates MoneyProsperity Economics Values the Flow of Money3) Dollars Do Only One Job vs. Dollars Do Many JobsIn Typical Financial Planning Each Dollar Does One JobProsperity Economics Recognizes That One Dollar Can Do Multiple Jobs 4) Professional Financial Planner Is the Expert vs. Clients Are EmpoweredTypical Financial Planning Gives Control to the AdvisorProsperity Economics Emphasizes Client ControlListen to the PodcastEpisode ResourcesHow to Take Action

Where Your Mindset Fits into the Cash Flow System

At The Money Advantage, we are a community of wealth creators.  We are entrepreneurially-minded business owners who are taking control of our lives and financial destiny.  We have a compass that always points back to the principles of wealth, not just to strategies or products.  You need the right mindset, philosophy, and principles of abundance, expansive thinking, creation, cash flow, and control in place first before any financial tactics can genuinely benefit and serve you.

In the Cash Flow System, you first increase cash flow by keeping more of the money you make. Then you protect your money.  Finally, you increase and make more.

This conversation on the mindset, philosophy, and principles of wealth creation fits right into the very first step of the first phase.

How’s Your Thinking?

Whether or not you’ve ever considered your way of thinking about money, you owe it to yourself to pause for a moment of reflection.  Have you fostered your awareness of what you are allowing to influence your financial beliefs and perspectives?

We aim to help you develop clarity on your financial foundations and philosophy.

If your current mindset is not helping you create your ideal life, we give you the permission to think differently.

This article, in conjunction with Part 1, provides the basis for understanding the principles and beliefs guiding the typical money conversation and those behind the prosperity conversation.

In Part 1

In What Is Prosperity Economics? – Part 1, we

Dissected the false assumptions that are the foundation of typical financial planningIlluminated why financial planning has failedOutlined the four fundamental differences between the typical and the time-tested traditional financial paradigmsDiscussed the first eight of the twelve comparisons between financial planning and Prosperity Economics:

Meeting needs and goals only vs. pursuing wants and dreams