And it's making me angry! As a business man, but even more so as a finance and mortgage coach, I am deeply disturbed by the affliction and almost permanent emotional scars being left on people due to their fear of money. It is this fear of money that opens the door to the evil system of social engineering and conditioning, and allows the emotional state of people to be moulded into money slaves.



You could say that it is the evil that creates the fear in the first place, but like the chicken and the egg, which came first?

Where I live, we have just had an interest rate rise, and it is playing havoc on a lot of people. The biggest emotional strain is the fear of loss. Fear of losing the home, losing some of their lifestyle, and fear of losing control on what is already an uncontrollable life.

This fear is exactly what the major financial institutions prey on. In fact, certain professionals are employed by these big firms to educate them in the best way to prey on these fears. What I'm seeing a lot of now is a rush to get home and small business loans fixed, but what I am not seeing is anybody doing any homework before signing on the dotted line.

It's ridiculous that a perfectly sane, intelligent and hard working individual or couple would sign over their most important asset to a financial institution before checking out what it is their getting into.

Let me give you a few examples:

The biggest draw card for the financial institutions is a low fixed rate, fixed for four years. Sounds good, doesn't it? But the problem is that no matter what the interest rate is, the financial institutions have a minimum amount that needs to be made from each loan. This means that if you have a low interest rate, then you have an extremely high probability of having fees and charges built in to the loan to make up the shortfall.

The next trick they play is there is no flexibility. This means that if you want to pay more off your loan you will either have fees for doing so, or a limit as to the extra amount you can pay, or both. What makes this even worse is that if you lose your job or have an emergency in your life, the inflexibility of your loan puts you in a very tricky situation.

Thirdly, a so-called ‘low rate' looks attractive because it leads you to believe you're paying smaller repayments, but what does that do? Apart from not taking into account all the extra fees and charges you're going to incur, you've also just increased the term of your loan.

I don't quite know whether it's laziness as well as fear, but I cannot for the life of me understand how 99% of the western world will not stand up and get an education in money and finance. If a parent feels their child's safety is in danger, they will act without thought, and an instinct of immense power takes over. Yet at the same time, most of society live in complete fear of money, and are therefore teaching their children the exact same fear.

If you really love your children, then why would you want them to follow the footsteps of, struggle, stress and financial dependence. I know this is a bit harsh, and I'm not suggesting for one moment people don't love their children, but there has to come a point in time when parents realize that what they are doing is not working but at the same time is leaving a huge impression on our youth.

There are better ways of coping with an interest rate rise, than running to a bank with your tail between your legs and pleading for a fixed rate loan. If you live in the US, then you actually have it better than us in Australia, yet the statistics are exactly the same, suggesting that it has nothing to do with the interest rate, but rather the education and mindset of people.