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| Finance (Photo credit: Tax Credits) |
Why is this important, because these mindsets increases your risk of falling for a scam.
Some of the relevant "sins" are...
- Anorexic Spending -- inability to spend money on the *real* necessities, like critical health care, proper food, shelter, and clothing
Instead, the money was spent on unproven nutritional supplements, fancy "diets", fancy car, big house, fancy cloths... and so on, often just to keep up appearances of luxury. MLM and "lifestyle" coaches often advise people to "fake it till you make it", that acting rich will lead you to being rich. What it does is lead you further into debt.
- Financial Enabling -- giving money to someone who you thought needed it. You may be be generous, but you just basically let that person avoided the problem... "until next time"
This is more about the people around the victim... If the "victim" needs money, giving him or her money doesn't solve her problem. As the Jesus had said, give the man a fish, and he eats for a day. Teach the man how to fish, and he eats for a lifetime. Giving money to people who need money is the same thing... you simply delayed his or her problem for a while longer.
In case of MLM, buying the stuff you don't need from a guy who don't really know how to sell, just to humor him, would simply lead him to falsely believe he *could* sell. Remember the number one rule in MLM: pitch to friends and family first. And this would lead him into more anorexic spending, and perhaps, to pay for more "lessons" when his schtick doesn't work on any one else.
- Entitlement Mindset -- believing that "life owes you", that you're entitled to something better than you can actually afford.
This works hand in hand with "Anorexic spending", and if there are rich relatives and friends, "financial enabling" as well. While better life is something to strive for, living that life BEFORE you earned it is a good formula for failure.
And MLM (and scams) are very good into tapping into that entitlement mindset, about living the American Dream (or a better life, if you don't live in the US).
- Workaholism -- sacrificing family life and health for financial gains
This one is a bit of a right idea, but not always the right path. If one can be sure that the path he's on is the right one for financial gains, then by all means, go for it, but achieve some life / work balance. On the other hand, MLM is NOT right for everybody, despite its claims that one formula fits all, and everyone can do it. Checking the income disclosure statements from most MLM companies shows that VAST MAJORITY (over 90%) makes only a few thousand dollars a year, and that's BEFORE expenses.
Beware of the dangerous mindset that leads you to failure.
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