Ending Financial Scarcity; Debunking Money Myths with Kristen Ragusin

Not sure how to manage your finances? Fear not! We sat down with Visionary Financial Investor and Author of The End Of Scarcity, The Dawn Of The New Abundant World, Kristen Ragusin to debunk some money myths so that you can invest wisely in your life goals with confidence.

1. How did you get your start in the investment world? What drew you in?

I had an unorthodox start—and an early one. When I was a little girl, I earned my allowance by learning about the Stockmarket and how interest rates worked with my father. Then as a teenager, my father would practice buying stocks with me and even guarantee my losses. I had no idea what a good deal that was as I thought he should guarantee my gains too. We had a lot of fun, and it was a wonderful way to spend time together. I learned to love the idea of markets, how the money could grow and to consider the different financial opportunities that were waiting to be discovered. I saw the markets and investment as an integral part of the American Dream and freedom. It should have been no surprise when I became a professional financial advisor after college. But I wasn’t hooked until I sat with my first clients and saw how much emotional stress they had around money, and was excited to help them feel empowered and able to direct their financial future.

2. What compelled you to write the book, The End Of Scarcity, The Dawn Of The New Abundant World?

In 2008, I got lucky and saw the great financial crisis coming ahead of time. Though I got clients out of the market when the system collapsed, I was sure I was missing something in my worldview about money. It sent me on a seven year journey around the world doing research that led to a whole new understanding of what we use as money today and how the money we are using is actually the source of scarcity or “not enough-ness—that pressured feeling of chasing money” that plagues our society and the world. 

I discovered the lost history of money and was blown away by its brilliance, intrigue and insight. I saw that all people before us have had these very same challenges of being able to efficiently access credit, store the value of work contributed and have stable economies free of sudden booms and busts. It became apparent that the magic key which determined whether society thrived or struggled horribly was how ‘the money’ they used was designed, the way the money came into existence, and who controlled it. There were two ways to design money: The scarcity model or The abundance model. I knew I had to find the way we could reintroduce the abundance model and help humanity create the world it longs for and it became a passion for the beautiful future that is easily possible. 

3.) What is your opinion on the Basic Income Movement and other similar initiatives?

This is a tricky one. For as much as a Universal Basic Income sounds enticing it is wrought with challenges and ultimately becomes unproductive. Because when a basic income is given as payment to all residents of New York City, for example, those with rental properties no longer have investment risk to see that rent gets paid. Rent prices quickly rise because payments are secured by guaranteed checks in the mail and the market rate for rent is no longer connected to how productive people really are. Property values would have pressure to rapidly go up even more as those with in savings would be incentivized to buy up all the rental property with no risk tenant income streams. This would happen in many different parts of the economy. It’s a feel-good that sounds good, that actually distorts and disempowers people detaching them from the power of their labor and contributions to society. 

This is how rentier economies have been locked in when people own nothing and rent what the generation before them owned. The most dangerous part about this payment is the dependency they create and ultimately, the total control over society because whoever is in charge can change them or make certain behaviors mandatory to receive them. And as the old saying goes, “the worm turns” What we think is ok will almost certainly be used against us or be the opposite of how it began. 

Debt forgiveness, on the other hand, does have merit. But it needs to be across the board. So if a debt is being wiped out for some students with debt, then payments in an equal amount need to be given to those who paid directly or repaid the debt. In this instance, payments must be issued to avoid inflation. If this can be done with some forethought it could be productive. 

4.) What would you tell your 25 year old girl self to invest in?

Herself. The most important investment any young woman can make is in herself. Be brave. Choose work and a way to truly contribute to others that is in alignment with her talents and natural strengths. Life is short, and work is meant to be something that develops her talents, and presents challenges for her to transform into opportunities to grow. Put effort into seeing how she can dream, explore and contribute to creating new possibilities of what her life can be about. And! Start with a financial plan and outline prospective goals, especially savings goals. Paying bills, and living within her means helps create a solid sense of stability and peace of mind. Starting early is the key to success. Fund the savings goal first every month before any other commitments are made. 

5.) What do you op to achieve with your book? 

I hope to create a whole new worldview. Especially for young people who are the future. My hope is that everyone who reads or listens to the wisdom on the pages will learn the truth about what money is meant to be and how our contributions are what gives money its effective value. The book contains the information we all should have received in first grade, and it shows how society can come together- without getting stuck in politics- and create a world that works for everyone. 

The truth is, we are all born wealthy. Because each one of us has unique talents, skills, and passions. We are just missing some important information about money and money systems. The book closes that gap while it empowers all humans to create a beautiful future. It is possible, and what’s amazing is that it is less difficult than what most can imagine.

About Kristen