Money is a tool
Money.
It’s been called the root of all evil.
Money has never really been my friend. We’ve had more of a long-distance relationship. Everytime I wanted to get closer to money, the farther away it seemed to run. :)
As I’ve grown older, I’ve learned more about my relationship with money. I grew up with a misunderstanding about money because my parents didn’t teach me about the importance of saving or investing. I can’t blame them for it, though. They didn’t know how to use money either, so how could they have taught their children?
My family was not dirt poor, but finances were always tight. I look back on my family’s use of money, and I now understand our lack of money was not due to not having any, it was about the attitude we had about money and how we used it.
As soon as money came into our lives, it was spent right away. If somehow there was extra money, we found something to spend it on.
There was never a discussion of saving for the future. Or investing. Investing was something only rich people did because they had extra money to invest.
I’ve now learned that saving and investing is something we must all do if we ever hope to escape the rat race. I’ve learned Money is the tool we use to achieve our goals. Money, itself, should never be the goal.
Read
One way to change your view of money is to read books like The Richest Man in Babylon
Money is like a seed
Back before there were genetically engineered crops, a farmer would harvest his corn, save some of it for planting the following year, and sell or eat the remaining. If he didn’t save some seeds for the future, he would end up with nothing. He would have to go out to beg, borrow or buy more so he could feed his family. In otherwords, if he didn’t invest some of his corn this year, he couldn’t grow a crop next year.
This is the same lesson we need to know about money. Most of us (at least most of the people I have known) live paycheck to paycheck. They spend everything they make, and save nothing for the future. So they have to continually work, spend, work, spend, work …. You get the idea. But what happens when you can’t work anymore? What then?
The investment-minded worker knows to set aside a portion of his pay for the future. As described in The Richest Man in Babylon
One of the best things that happened for my future was investing in a 401k. I didn’t like it at first. It was forced on me by municipal government I worked for after college. They had no retirement plan, so everyone was forced to contribute at least 6% to a 401k. They contributed 3%. I hated it at first. Then as the money began to grow, I saw the wisdom of it. Had they not forced me to save, would I have had anything at all for my future? Probably not.
Financial education is something they don’t teach in school. I belive if every grade had a mandatory class on saving, investing, and business, we would all be better off.
It’s generally accepted that the older you get, the harder it will be to save enough. The Simple Dollar just posted this review of Start Late, Finish Rich that may give hope to those who think it’s too late.
I encourage all of you to think about your financial future. It’s never too soon. As a matter of fact, if the average 18-year-old started a reasonable retirement plan, they could retire as a millionaire without much difficulty. And if they were aggressive about it, they could retire well before the normal retirement age.
Yes, saving is crucial. What I did was to set aside a certain amount into my 2nd bank account, and I can only spend on what’s left in my 1st account.
That way, I learnt how to budget.
Even the world’s richest man do not use branded stuff, that’s their secret to be rich.
And also…money makes the world go round
Haney’s last blog post..Keeping Shower Curtains At Bay
Haney,
What has really helped me with my budget is to direct deposit my check into one account, my online bill pay automatically sends payments on my regular bills, and the rest goes into another account. What I end up with is for food, gasoline, savings, and fun.
That was the best move I ever made. No more figuring out bills, or spending too much on going out. The bills are paid before I even see the money in my personal account.
Shawn
Happy Monday,
I remember reading The Millionaire Next Door - what an eyeopener that book was! Smart people don’t waste their savings/income - they budget wisely and with common sense, looking towards the long-term.
Instilling this wisdom in my kids is one of my long-term goals.
Best wishes,
Barbara
Barbara Ling (aka Owlbert)’s last blog post..Viva the Easter Broccoli Bunny! Managing your blog fan’s expectations - Day 1 of 5
[...] susanhanshaw wrote an interesting post today onHere’s a quick excerptAs I’ve grown older, I’ve learned more about my relationship with money. I grew up with a misunderstanding about money because my parents didn’t teach me about the importance of saving or investing. I can’t blame them for it, though. … [...]
Hi Shawn, you’ve got a great site! I like your blog title as well.
I think lots of people have been mistaken, it’s not the money who is the root of all evil, it’s the LOVE of money who got problem.
I agree with you, money is a tool for achieving our dream.
Thanks for the post,
Robert
Robert A. Henru’s last blog post..Five reasons why you need networking break
Hey Shawn!
I agree with Robert.
I also want to add that money will only amplify what you are within i.e. it’s the root of all evil only if the person who has money is evil.
So, I’m very sure money is the root of all good if you have it
Anyways, I was listening to the attract wealth MP3 just now and they told a story about how Dr Joe Vitale bought a lighter worth $600 and a lot of people said ,”Are you crazy?!”
I did too. But after the whole call ended a paradigm shift happened and like u said, I realised that money is only a tool! Spending $1 or spending $1000 is the same because I am not attached to the money (the tool) I’m more attached to what my money can make (my results)
What do you think, Shawn?
To CANI,
SaiF
The World’s First Teen
Personal Development Video Blogger
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