Last year my reverend gave a series of talks on a book he read entitled Twelve Powers in You. The book describes  physical, spiritual, and emotional aspects of the 12 powers inherent in each of us. Fascinated by these talks, I’ve decided to expand on them through the money perspective that I often see things, being a financial planner.

According to Google, Understanding is the ability to understand or comprehend something.

Spiritually, understanding is listening to others, yet searching for, and finding your own truths. This is like “doubting” Thomas who had to put his finger in Jesus’ palms to comprehend that it was really Jesus.

Emotionally (soul), understanding is the ability to know that we are all different, and being able to respect those differences. Just because someone doesn’t think the way you do doesn’t make them wrong. Understanding on an emotional level is best accomplished when calm.

Physically, understanding is represented by our five senses: taste, touch, sight, hearing, and smell. These senses, coupled with the analytic or reasoning aspects of our conscious mind give us our own understanding of something.

What does understanding have to do with money?

Because money principles are not usually taught in grade school, most of us gain understanding of money in two ways:

First, we learn by what we see our parents doing. Like seeds being planted in our subconscious, if we see our parents mired in debt and always fighting about money, we can choose to follow that path, or we can choose to find a new truth. This leads to the next way we learn.

The second way we gain understanding is through experimentation. For example, someone that sees their portfolio grow through monthly investing may have a better understanding that if they want to have money, they have to save and invest. Another way we understand money is through experimentation with investing. Investing in the 90’s was all about return. When the 2008 correction happened, investors began to see the importance of risk as they saw their portfolio values decline. Having experienced BOTH the bull of the 90’s and the bear of the 2008, many investors now understand the importance of balancing risk and return.*

Either through seeds planted by our parents habits, or through our own experimentation, we find our understanding of money. Now send this blog to someone that might need a seed planted.

*For more on balancing risk and return, see my blog on risk versus Return.


Rich Feight, CFP
Rich Feight, CFP

Hi, I'm Rich Feight I'm a fee-only Certified Financial Planner, successful business owner, and self-made millionaire that knows how to beat the system and become wealthy. I have a lot of clients that have done it too. I'm also pretty good at finding that ever-elusive work/life balance so many of us strive for. Lucky for you I have an abundant mindset and give all my knowledge away on my blog. So if you want to know what it takes to become a millionaire, follow me.

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