Money Mammoth. Ted Klontz

In the past few decades, we have been given access to easy and fast credit.

      But recent cultural shifts have dramatically changed the landscape. Corporations have shifted from defined benefit plans, such as pensions, to defined contribution plans, like 401(k)s. These somewhat subtle shifts have changed the responsibility of saving for retirement from the institutions back to the individual. So we shifted the responsibility of taking care of our aging members from small tribes to the government. In the past few decades, institutions have been discharging this responsibility, but now there are no tribes left to fall back on.

So now it is all up to the individual. This has never happened in human societal evolutionary history, and it is significant to note. You heard this message if you remember the daily briefings after the corona virus outbreak, when self-reliance was called for and lack of government reliance became a reality. This dramatic shift alone helps explain, to a large degree, our society's current financial problems as well. Look at the total global economic impact of the corona virus–related disruptions for businesses, organizations, individuals, and government, and the unintended results from these shifts of societal personal responsibility. Who was most impacted? The poor and the elderly, those groups least able to take on the personal responsibility and who were more dependent on government systems.

WE MUST EVOLVE

      So, what can we do? The first step is to move away from lecturing, scolding, shaming, blaming, judging, scapegoating, and treating ourselves or others as if we are flawed or broken. We describe shame as an emotional gluetrap that keeps you stuck. Shame is not helpful. Second, we need to develop strategies to overcome this basic wiring that was essential for our ancestors to survive in the ancient world but works against us in today's world. This book is designed to help you understand your financial psychology, why you do the things you do around money. But we don't stop there. In each chapter, we offer tools to help you both tame your inner Money Mammoth and harness its powers to help you achieve your own ideal financial mindset.

THE WINDS OF CHANGE

      The message here is that, indeed, change is all around. Change is the one inevitable constant in our existence. Some change is for the better and helps us live happier and richer lives, but some change can threaten our literal existence as a species. How can we tell the difference and be prepared? After all, what doesn't kill us makes us stronger, right? However, if we become so smart as a species that we create automated workarounds to address these changes, will it make us weaker and softer? Will those changes sneak up on us like the proverbial lobster in the pot, unsuspectingly boiling us alive? Will we think we are living high and happy, relaxing in the hot tub of life, only to discover too late that we are becoming extinct?

A HISTORICAL MOMENT

Will we look back to this moment in time and identify these financial trends as the cause of societal collapse which foretold our future? Is this the cause of our extinction? Are we like the mammoths, living in a world that is changing faster than we can comprehend or address? Or will the smartest and most enlightened of our species lead the way to change the trends that threaten our existence? Make no mistake, making behavioral change is hard, and doing so while fighting your genetic instincts will take some expert guidance.

TIME TO EVOLVE

      Let's learn from the woolly mammoth and early humanity, and adhere to the lessons evolution has provided. To avoid a life of pain and struggle, let's explore how to take action now through financial awakening and rewiring our financial behavioral actions. Let's evolve and become a new species, the Money Mammoth, who confidently roams the earth and thrives in this new, constantly changing world.

NOTES

      1 1. American Psychological Association, American Psychological Association Survey Shows Money Stress Weighing on Americans' Health Nationwide, February 4, 2015, https://www.apa.org/news/pressreleases/2015/02/moneystress.

      2 2. Kathleen Elkins, Here's How Much Money Americans Have in Savings at Every Income Level, CNBC, September 27, 2018, updated October 11, 2018, https://www.cnbc.com/2018/09/27/hereshowmuchmoneyamericanshaveinsavingsateveryincomelevel.html.

      3 3. Kathleen Elkins, Here's How Much the Average Family Has Saved for Retirement at Every Age, April 7, 2017, updated July 31, 2017, https://www.cnbc.com/2017/04/07/howmuchtheaveragefamilyhassavedforretirementateveryage.html.

      4 4. Federal Reserve Survey, Report on the Economic WellBeing of U.S. Households in 2018, May 2019, Board of Governors of the Federal Reserve, May 24, 2017, updated July 31, 2017, https://www.federalreserve.gov/publications/2019economicwellbeingofushouseholdsin2018dealingwithunexpectedexpenses.htm.

      5 5. Kathleen Elins, Here's How Much Money Americans Have in Savings at Every Income Level, CNBC, September 27, 2018, updated October 11, 2018, https://www.cnbc.com/2018/09/27/hereshowmuchmoneyamericanshaveinsavingsateveryincomelevel.html.

      6 6. Social Security Fact Sheet, SSA.gov, https://www.ssa.gov/news/press/factsheets/basicfactalt.pdf.

      7 7. Bill Fay, Consumer Debt Grows as U.S. Economy Expands, August 27, 2019, https://www.debt.org/2019/08/27/consumerdebtgrowsasuseconomyexpands/.

SECTION I YOUR ORIGINS

CHAPTER 1 Your Ancestors

      This is the story of James and Alex, both of whom grew up in wealthy families. Both have more money at their disposal than they could spend in a lifetime. Both are surrounded by conspicuous luxury, and they have had the best education that money can buy. They eat the finest foods; they wear the finest clothes, and they run in the most elite social circles. They are financially set for life. In terms of material possessions, they have it all. Their wealth is not only profound, it is generational. Both come from families that have been wealthy for generations. Even though they come from similar places, they are very different people.

      James is a spoiled brat. His life consists of parties late into the night and sleeping in almost every day. He doesn't do anything productive. He doesn't work. He mistreats service providers. In fact, he can be downright cruel. Even though his parents have given him everything he wants, he resents them. He drinks too much; he eats too much, and he gambles incessantly. Inside, he feels bad about himself. He feels lost, purposeless, depressed.

Alex, in contrast, lives a very different life. He wakes up early each morning, and spends much of the day strategizing how he can leverage the financial gifts he has been given in ways that are consistent