To be totally free in your financial affairs, you need an environment that permits you to work toward any financial goal you choose. As Americans, we have inherited the foundations for a free financial climate. We enjoy the benefits of liberty, the free enterprise system, and capitalism. They’re celebrated to be the most progressive and encouraging economic systems in the world. Without them, you could be misdirected onto paths leading to dangerous destinations situations that could enslave you.
Capitalism is a political economic system where private wealth, lawfully acquired or developed by private enterprise under free competition is owned or managed by those who earned it.
Why the Success?
During its first 200 years, America emerged from a primitive wilderness to a nation now producing one sixth of the world’s goods and services. Historically, no other nation has ever achieved such success. But America’s success can’t be credited to unusual resources or attributed to a unique breed of people…similar resources are found throughout the world and the people of America are races of all nations.
In fact, you’ll discover the success comes from the genius of the free enterprise system and how it encourages millions of Americans to be responsible capitalists and stewards. America’s vast financial achievements stem from this great system.
The Free Enterprise System
America is the biggest economic power in the world today. You have all the natural resources, economic powers, and financial tools needed to provide goods and services to a global market. The only limitations holding you back are capital, raw materials, knowledge, industry, competition, and the moral guidelines of honorable citizenship.
The core of this model is the free enterprise system. It’s a system supported by an environment of free trade. In this environment of a free society, the free enterprise system has blossomed and flourished through the genius of responsible capitalism.
Private Property
Private property is one of the leading characteristics of a free society. However, its ownership is fragile. Throughout history, disputes have raged over the issue of land ownership private ownership versus public ownership. Sometimes this debate has grown so heated, nations and even families have battled each other. These destructive conflicts have caused the legal system in every developed county to enact regulations for standardized ownership of real estate.
These laws and regulations governing land ownership have in great part, fostered the political economies of the free western world. These laws define land ownership, protect the rights of landowners, and penalize those criminals guilty of illegal land dealings
In America and throughout western civilization, political power and wealth are often tied to land ownership. In contrast, communist countries forbid personal ownership of land, claiming the right of common possession. The collapse of communist Russia in the twentieth century, reveals the failure of the restrictive policy of communal ownership.
Pride and Care in Ownership
It’s been proven when individuals own property, it leads to a sense of pride and responsibility in caring for and improving the property. When you own property and make improvements, you truly feel responsible for it. Once landowners add their labor to property, the value of it becomes the combination of the land value plus the value of the added labor. Because labor is private, the value of the land becomes based even more on the added value of human labor than on its original value.
Responsible Capitalism Means Stewardship
In Western history, wealth has always been connected with land ownership. Through land improvements a landowner became wealthier. The wealthier a landowner became, the more respect he received. Responsible stewardship affords benefits that fall into three main categories:
1. Capital Increases Your Opportunities
Our ancestors entered the industrial revolution with visions of a new world where machines could increase physical abilities, replace backbreaking labor, and protect you from unsafe working conditions.
The computer age brought predictions of amazing mental enhancement. Computer science put men on the moon and personal computers became as commonplace as television sets.
In much the same way that machines and computers increase our physical and mental abilities, money or “capital” increases our personal opportunities. Today, capital is leveraged to buy, sell, trade, loan, and exchange assets. It can help you develop opportunities for personal gain and self-expression.
2. Preserving Your Estate Blesses Your Family
In some ways America has unique laws of inheritance. Through proper planning, you may pass on your assets, real estate holdings, and other capital to family members, friends, or charitable organizations. Then you guarantee those closest to you in life benefit from your financial assets when you pass away. So acting as a responsible steward brings rewards to you and your loved ones.
3. Capital Benefits Your Family and Community
Private property is not entirely “private.” It’s part of the resources of Mother Earth’s original gift to you. Because of this, communities feel some sense of responsibility and ownership for private property. Zoning and Public nuisance laws may apply to your property affecting its upkeep and maintenance. Municipalities may exercise “eminent domain” laws and convert private property to public property.
This view of shared ownership means although private property benefits private individuals and families, its value and improvements may also benefit the community. Society encourages and supports the efforts of private landowners to act responsibly in maintaining and improving their property and neighborhood.
Ways to Take Ownership of Your Life
1. Understand that no matter where you are in life the only person out there who can change or improve your life is you. The saying “when you point one finger, there are three fingers pointing back at you” is true. You may not have had full responsibility for getting to where your life is at right now… but you do have full responsibility for improving your situation.
2. Take time to identify all of the rolls and responsibilities you have in your life, for instance: husband, father, provider, employee, son, brother, soccer coach, bible teacher, community leader, account trustee, etc. Then list what you are doing for each. Are you failing at any aspect of those responsibilities? Set goals to improve your ownership of these rolls.
3. Find ways to improve the environment around you which will help make your jobs easier. Does the house need cleaning and organizing? Are there home or car repairs that need to be taken care of? Is the yard in need of some TLC? Do you need some additional work training? Set aside some time to clean up your surroundings and take care of personal needs so that you can focus on other responsibilities.
4. Plan some time away from distractions to review your financial life. What is your monthly budget? What are your assets and debts? What does your savings look like? Retirement? Investments? Life insurance? Do you have short and long term financial goals, and how are those progressing? Set goals to fill in the gaps in your financial plan and don’t forget to include ways to reach those goals.