Self-Made Wealth by Eben Pagan

Self-Made Wealth by Eben PaganIn a nutshell, Self-Made Wealth is a financial management program for individuals who struggle to control their money. It’s a series of training videos and resources aimed at helping people understand the concepts and best practices of securing and sustaining wealth.

Through this program, Pagan challenges people to “examine beliefs and experiences, emotional relationships with money, feelings toward successful people and daily habits with money”. According to him, there are four hindrances to financial success that people need to understand:

  1. We’re not wired for success with money
  2. We’ve got bad programming for money
  3. We have an unhealthy emotional feeling about money
  4. We do the wrong things with money

The nature of the program is, according to Pagan, not a “get rich quick scheme” because those schemes “never get anyone rich.” Rather, it would be more on learning the art science and psychology of creating wealth from scratch. This also includes learning the essential neuroscience, cognitive science and emotional intelligence tools.

Pagan asserts that wealthy people invest in assets, knowledge and relationships, while poor people invest in liabilities. For him, money is just the medium people use to exchange the value of one asset to another.

Most people see money as a cause (I need money before I can make things happen), whereas wealthy people see it as an effect of creating value. He says that to be wealthy is being persevering enough to work on achieving that goal, instead of waiting for your ship to come in.

These are some of the opposing concepts further distinguished by Pagan

Assets vs. Liabilities

  • An asset has intrinsic value that goes up over time
  • A liability does not have intrinsic value and can consume more of your resources

Spending vs. Investing

  • When you spend money you are buying liabilities, things that have no long term value.
  • When you invest in something, you are taking your money and trading it for something that has lots of intrinsic value and goes up over time.

The program also basically points out that wealth comes not from getting money, but from creating value, then converting the value into assets then accumulating assets that grow in value and throw off value and money until ultimately you have wealth.

And of course, that borrowing money is the “ultimate trap” that makes people modern indentured servants.

The impact of a product in this nature is always expected to be huge especially to the average person who may know little no insight on how to manage their finances. Not to mention to pressures of society and modern living that only aggravates an existing financial management dilemma. Given Pagan’s initial popularity from his dating tips products, his target market would’ve easily absorbed the nuggets of wisdom he has to offer when it comes to handling money.