We live in a world of abundance and generations of families have worked very hard and adhered to principles of frugality like never before. Many young people are living extravagant and lavish lifestyles that their parents would never have been able to achieve without a lifetime of frugal habits. Some young people are aware of this and have been following the priesthood of Finance and Budgeting, adhering to their parents teachings, and never asking for anything form their parents. Others however, are on Economic Outpatient Care. The Book The Millionaire Next Door lays out the concept and states in one sentence, "In General, the more dollars adult children receive, the fewer they accumulate, while those who are given fewer dollars accumulate more."
EOC is not a terminal condition, yet. But if not addressed, can be. I once met a terminal cancer patient whom also had a brain tumor, at a bar... This man was very kind and generous, I will never forget my new friend. Since his diagnosis of 6 months to live with Lung cancer and an incurable brain tumor he did what I think most of us would choose to do- live it up, baby! The amazing part of the story didn't come from the stories he shared of his past but the fact that he had lived passed his allotted 6 months. Due to advances in medicine and technology he was living longer than even he or the Doctors expected. This is true of Finance as well. Most of us in our youth have this feeling of invincibility and the lack of foresight, so we tend to make lavish choices that give us tremendous pleasure. The financial and economic tools available to us today are like never before. A recent enlightening conversation pointed out to me that "Millionaire" is just the new upper middle class. As more and more people have access to more and more information about saving, investing, and planning then it becomes easier to achieve Millionaire status if tempered risks are taken at appropriate times in one's life & certain fundamentals are adhered to and followed.
With an ever increasing emphasis on consumption and overconsumption, being "insta-famous", and still keeping up with the Jones' mentality by travelling to more and more exotic places your parents maybe never could, it's more important now more than ever to be over cautious that we aren't on Economic Outpatient Care. If concerted efforts to help protect the legacy your parents and grandparents worked so hard for aren't implemented then you may have little to gain, or worse.
So what steps can you take to get off of Economic Outpatient Care? First, start a budget. Budgeting is easier today than it ever has been. With a cashless society coming closer, no more envelope system and no more handwritten ledgers. With Financial Butlers, it's easier to manage your budget than ever before. Second, stop competing with your peers financially. This game ends in loss for you, maybe even debt. If they want to play that game, let them. We can cover how to get out of debt step by step if you want to schedule a consultation with us.
Thirdly, you can thank your parents for their generosity, but now it is time to have a frank conversation with them about your new resolutions and intentions to form an estate plan. This is a remarkable time in history to be alive because there is going to be a huge generational transfer of wealth occurring. If you haven't read the Millionaire Next Door I would encourage you to do so and then I would encourage you the invite your family to schedule a meeting with us at Thomas Wilson & Co. Because through Estate Planning comes true wealth generation. We can have a frank and direct conversation about what steps you need to implement and what tools we have to help you get there. Parents, if you're adult children are on EOC and you're footing the bill and want to have more to enjoy life, schedule a family consultation with us. We are clear, concise, direct, adaptable, and work in a team atmosphere for the benefit of everyone. We love coaching our families to success. We don't want you to not give your grandchild a birthday present, but we want to discuss what perhaps an even better gift would be.
We are here to help guide you to success.
To schedule an in person or phone meeting with our team please, click here and see our calendar page
