What is your Wealth Thermostat?

The biggest question is, where is your current wealth thermostat setpoint?

And how does it affect your ability to accumulate the amount of wealth you want to achieve during your lifetime?

“Why is it that we constantly see the majority of lottery winners and recipients of inheritances end up where they started some 18mths to 2 years later and in some cases worse off? You see we all have something called a Wealth Imprint. Or in simple terms a ‘Wealth Thermostat’. Our wealth thermostat tolerance oscillates at approximately 10% above and below this individual imprint line.

Wealth thermostat reset

When we ‘come into money’ that comes in a WAY that we have not physically earned. If this above this 10% buffer we will through unconscious fear and/or guilt find a way to sabotage this wealth. This could come in the form of getting caught in a scam or entering into a risky investment.

Similarly, unexpected expenses crop up or perhaps a lawsuit or something similar. What is happening here is, we are unconsciously finding a way to bring us back to within our comfortable wealth imprint range again.

As Warren Buffett says….. ‘those that cannot manage their emotions won’t be able to manage money’. This is exactly one of the emotional states he is referring to.

Knowing Your Wealth Thermostat

One way to prevent this oscillation is applying an attitude of gratitude in order to increase your wealth thermostat by acknowledging and appreciating the incoming money. This is achieved by writing down a minimum of 100 reasons why you deserve this money and what you have done to deserve the incoming money.

Simply put, the more reasons you have, the more money you will retain. This way, when you receive this money your emotions are less volatile and in that way you don’t oscillate between fear and guilt. You have reset your wealth thermostat and therefore you are able to retain more for longer.

Balancing Your Wealth Thermostat or ‘Wealth Worth’

This is why we find it important when our clients are receiving inheritance monies or have come into a sum of money from an outside source, that we have that person write down 100 reasons why they deserve this money. As well as, what they have done to deserve it. This brings the person receiving the money back to equilibrium, balancing their emotions and raising their wealth thermostat.

Raising their wealth thermostat (or ‘wealth worth’) helps prevent them from getting ‘manic’. Most importantly, anything that can make you elated (manic) will eventually end up making you depressed. (And cause your money to leave you in one way or another).

💰 I also encourage parents whom buy cars for teenagers to have the child write down what they have done to deserve this car to allow them to feel like they have earned it and are worthy of the gift. We have all heard of parents buying cars for teenagers that end up in the crash repair workshop (or worse) not too long down the track”.

This is their wealth thermostat being expressed. It is easy to ‘get’ money but the art of keeping money is what we are all here to master. Learning this for our own benefit and then passing this knowledge to our next generations has never been so important. This simple exercise in understanding your wealth thermostat is the best investment you can make for yourself (your family and future generations).

The lines indicate where your current inner and most often ‘subconscious wealth value’ is positioned.

Let’s look deeper and find out how you can change your wealth thermostat

When it comes to your wealth thermostat, there is something that you must understand about your mindset. And that is, that our mind has a thermostatic range in it. It’s got a comfort zone. But people don’t realise what we mean by comfort zone. A lot of people don’t understand how your nervous system works. You basically have, what is called, vibrational set point. You’ve got an upper limit and a lower limit and as long as you operate inside of these limits, what is referred as your comfort zone, then your nervous system is cool. And, your nervous system allows you to have a 10% variance in either direction.

So this is your zero point. It allows you to have a +10% and -10% variation. If you ever go above your +10% or below your -10% in any area of your life, you’ll get notified through symptoms.

So… you can have a slightly blocked nose, are you a little bit tired and so on. But, if you get your nose blocked more than 10% your brain says, pay attention to your nose. You can have a bit of a sore knee but if the soreness of your knee goes above 10%, it will say hey, pay attention to your knee.

Your inbuilt wealth thermostat

You have got this type of inbuilt wealth thermostat or ‘buffer zone’ that enables you to operate within. And people fluctuate up-and-down, up-and-down, and up-and-down and they just stay and live inside these buffer zones. And as long as you stay inside these areas, you don’t get any information given to you in terms of feedback.

And, why is this important? Well, anybody and everybody you know has this buffer zone that allows a 10% variance. And also, and very importantly, especially in your ability to build wealth, money has a vibrational allowance. Every person has a variance of how much money they can gain or lose before their stresses kick in. This is your wealth thermostatic range.

💰 If you either go above or below that 10% variance, then all of a sudden, self sabotage starts to kick in. The middle is called the set point. The vibrational step point. And while you stay between the red and blue lines, it says, whatever you’re doing, you’re safe. And, it is safe to repeat.

Wealth thermostat of a lottery winner

There is no point in you trying to build wealth if you don’t understand this principle because you’re always self sabotaging and your nervous system will bring you back to your set point.

And this is what is found time and time again — a lot of winners, be that gamblers, lottery winners and people who inherit money, regardless of the amount of money won or inherited, are broke or worse off or spent their inheritance within 18 months time than they were before they received that money. In fact, winning the lottery can be one of the worst things that could ever happen to you financially. You have a 90% chance of becoming broke in less than 18 months.

Why?

Because when you win the lottery, your nervous system is not ready for it. And you get this windfall of money, you’re elated, you’re outside your 10% buffer big time, and then your nervous system comes in and starts to remove the core cause of the spike. What causes the spike is the money?

Your nervous system starts to invest all your money, starts giving your money away, buying anything and everything and then 18 months time you have nothing left or are even worse off than you were before your windfall. Then you never system says, thank goodness and you can go back to your vibrational set point. Your wealth thermostat has been restored.

Inheritances actually commonly only last 3 to 4 months.

💡 Understanding your vibrational set point in relationship to your wealth thermostat

Your nervous system doesn’t want to deal with the spikes. Your nervous system spikes stop you from venturing outside of your vibrational set point if you allow it to.

You will self sabotage because you will blast your nervous system outside of it’s thermostatic range until you understand this principle. Your nervous system will penalise you and that will be your pattern for the rest of your life unless you take control of your thoughts and emotions.

People who know me, always hear me banging on about ‘thoughts become things’ and this is a powerful analogy and representation of how your subconscious will run your life if you allow it. And it is stressful.

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What’s the solution?

The solution is to raise your vibrational set point. The solution is that we need to get to a point where we are understanding how we are meant to be functioning. We have to train our nervous system to go from, now we have no money to now we have a little bit.

Stay there, now let’s have a little bit, stay here, let’s have a little bit, stay there, now let’s have a little bit more, stay there, now let’s have a little bit and so on. Increase, increase, increase.

We need to train at nervous system to increase its thermostatic range constantly. This is called compounding. Why does every successful person harness and embrace the rule of compounding?

No one has ever contradicted compounding. Because it works. Now, how fast can you compound? It can be a matter of weeks – you can go from zero to $40,000.00 in savings in 6months if you wanted to – if you compound.

Start low and grow by increasing your set point.

So we get to a set-point. You get to the next set point and you move to the next step point, the following set-point and the following set-point. You start increasing those set points and guess what happens? Your thermostatic range moves up, it just moves up and up. So inside the red range, you’re still going up and down by the 10% but your set-point is going up, up, up as you are elevating your set point.

Then you get to this thing called a tipping point. This is where your nervous system is so used to it, it just shoots through the roof. Just like when you first learnt to ride a bike, your nervous system would only allow you to take on so much fear and pedal so many times before you fell off. The next time you got up and you went a little bit further before you fell off and so on. Your setpoint was rising until eventually you didn’t even think about falling off, you were on your way and no one and nothing could stop you. This is the same.

Consistency is key

The thing that we have to understand in this is the idea of consistency. If you’re not consistent at putting money away, if you’re not consistently saving, investing, growing and expanding your nervous system it’s going to work against you. That’s just what’s going to happen.

And so it’s important to know that you are doing this process and that you doing it consciously. Because if you continue the old way nothing much change and you will find yourself in five years time or 50 years time in a similar situation because you didn’t train yourself to develop that new pattern to increase your weath thermostat.

This is another reason why we strongly suggest that you take the principle of paying yourself first through automatic deductions. This way, you are developing an abundant wealth thermostat and building wealth without emotion and without your nervous system controlling your actions. This prevents your nervous system from going spike, crash, spike, crash, spike, crash. The automating saving system says grow, grow, grow, grow. Start low, grow, start low, grow, start low, grow. You get it… And what this means is that we start to get your consistency.

How much do you want to save a year?

Divide that figure by 52. What is it? If it is more than 10% of your weekly income you know it will not be possible at this point. Ideally, you want to start at 10% of your weekly income and after three months increase it by 10% and after that three months increase it again by 10% and continue on do it again in the fourth quarter. This is how you will compound your savings and increase your wealth thermostat and vibrational set-point.

💰 Begin with the end in mind

If you want to have $2,000,0000 in shares to live on throughout your retirement you need to work back and take into consideration time in the market and the compounding effect. You may want property to be your retirement nest egg and the rental income will be your passive income. How many properties and what rent range will you need. You may be selling your business to fund your retirement, what will be that number be?

If you or someone you know has come into a windfall or inheritance of money and you are ready to increase your wealth thermostat to keep and grow your wealth, we would be happy to discuss this further .
Feel free to call us on 08 7111 0022 or book a chat here

Arthur Panagis
Author, Founder, Wealth Coach and Financial Strategist

B.Bus (Accountant)
Grad Dip (Financial Planning)
Professional Certificate in Self Managed Super Funds
ASX Listed Equities Accreditation
Tax (financial) Advisor

REMEMBER, action is power!

💪 We want to make the rest of your life the best of your life.

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PARKSIDE SA 5063
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P.S. You could also read our Guide to Successful Investing here. *Preparation is the key to any success! 💪

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Disclaimer: This article is information only. It is not intended to imply any recommendation about any financial product(s) or to constitute financial or tax advice. The information in the article is reliable at the time of distribution, but may not be complete or accurate in the future.