The Anatomy of Financial Ruin

Anatomy: separating or dividing into parts for detailed examination.
Ruin: a. a state of complete destruction
b. the state of having lost money, social status, etc.

– Merriam-Webster

As an advisor, I have spoken with hundreds of practice owners and I have seen them go from complete financial ruin to achieving optimum financial success and everything in between.
There is an anatomy of financial ruin.
I want to ensure that you know exactly what it is so you do not walk down this path of destruction. If you find you are on the opposite side of financial success, you need to know with certainty that there is a way out.
Financial ruin could be defined as a state or condition where one has scarcity of money, has suffered large losses of income, where investment value and assets are overleveraged, where there is burdensome debt, where there are no apparent immediate solutions and seemingly all hope is lost that one’s current financial condition could possibly be rehabilitated.
Of course most of us do not intend to be in financial ruin. However, we can trace a definitive sequence of actions that one has taken to lead him down this destructive path. Knowing what has caused the ruin is the silver lining of hope that one can find their way back to the path of success.

Here is the formula for “ruin”:
CONFUSION followed by continued DESTRUCTIVE ACTION = RUIN.

Confusion is simply a symptom of not having a plan and not keeping correct statistics. As applied to finances, the key is knowing exactly what the Optimum Financial Condition is and then aligning all your efforts and keeping in your discipline to achieve it.
This financial confusion can manifest itself in many ways leading to destructive actions and ultimately financial ruin.
Let’s examine some examples:

• “I don’t know how to get out of debt.” – (confusion)
• “I’ll take some of my reserves and retirement and use it to pay the debt.” – (destructive action)
• “I’ll invest my remaining reserves in highly aggressive investments to make it up.” – (continued destructive actions)

This of course could lead to huge financial losses, penalties, and eventual financial ruin.

• “I don’t know why I always have problems covering payroll and not paying myself.” –(confusion)
• “I will stop the marketing and consulting services so we can save money.”
  – (destructive action)
• “I know my office manager is lazy and incompetent but I just can’t confront firing her.” – (continued destructive actions)
• “I think I will go buy a new laser machine even though we really can’t afford, I am tired of my staff complaining.” –(continued destructive actions)

Again, this will eventually lead to an insolvent business and inevitably financial ruin.
The anatomy of ruin is not exclusive to personal finances. It also applies to other aspects of your life. The primary reason people use destructive drugs, alcohol, or psychiatric medication is because there is some confusion in their lives which they don’t know how to handle or confront.
Ironically the derivation (root) of the word confusion comes from the 13th century Old French “to overthrow, ruin” and Old French as confus “dejected, downcast, undone, defeated, discomfited in mind or feeling”.
Most people in this country are in financial confusion – but YOU don’t have to be one of them.
Next you need to find out where you are weak and where you are strong and we have an assessment to help you spot exactly where YOU are – it’s called The Financial Prosperity Index^®. Visit www.financialprosperityindex.com.
Next I’ll give you the formula to help you get out of confusion on back on the path to financial success. Here is how to handle it:

1. Take a pen and paper and write down a list of everything you are confused about in your business and your personal finances.
2. Call your business consultant and your financial advisor and get clarification on each of the points.
3. Take the basic and simple actions which will lead you toward the optimum.

If your current advisor does not give you answers based upon statistical evidence or natural laws, then I suggest you find one who does. At Econologics Financial Advisors we have designed an informational academy to help you get back on track. This 3-day workshop was specifically designed to help private practice professionals lessen the financial confusion so they can feel more certain they are taking the correct actions to help them achieve their financial goals. If has been 2 years since you attended a financial planning course, then you need to register for this life-changing event – NOW. Your survival depends upon you getting and staying OUT of financial confusion. Visit www.privatepracticemillionaireacademy.com for more information.