14/NOV/2010 by the naked
"I had two father, a rich one and a poor one. Both offer me advices, but not the same things - one of the rich man, and one of the poor man. The problem was, the rich man was not rich yet and the poor man not yet poor!" (paraphrase from "Rich Dad, Poor Dad" - Robert Kiyosaki)
Nowadays, money has become a buzzword. It has been used a lot both directly (How to earn more money?) and indirectly (How to become rich faster?). Because of its high profile, money is also at the heart of many debates. "Will money make us rich?" is one of those. This post will somewhat help you to answer this paradoxical question.
Although it's a bit long, I hope you enjoy and benefit from it.
To begin with, Money doesn't make you rich. But the lack of money makes you poor.
Money is important!
-Many people are dying of starvation in Africa because they can't afford food and medical services.
-Many kids're growing up with low self-esteem because they don't have what they should have.
-There are many broken marriages because of the stress and arguments over the lack of money.
and many, many more examples...
Money is undoubtedly important. That's why people work for money!
But Money won't make you rich
But money won't make you rich! Don't get me wrong, like I said, money is essentially important. Money does make you "financially rich" (!!) but only in the short term (or even a moment). That's where the flaws in our thinking come from. Please bear in mind that, such a big amount of money doesn't guarantee you wealthy for your whole life. To illustrate, let's me give you a simple example:
Let's say, you current income was ($)A. Fortunately, you're promoted for your hard working. Now your income is 2A. What's more, you even work part-time at night. Your income now is 3A.
In such wonderful situation, would you think you will be become richer? - Probably. But in most of cases, you won't. Why? Your income increases, but so do your taxes and expenses. You're likely to spend more money for your joys, your pastime and much, much more. Still remember, the basic necessities' costs (for food and clothing, etc.) would remain unchanged. Hence, your cash flow would be:
Income (increases) - Expenses (luxuries (likely increase) + necessities (unchanged)) - also increase)
Finally, you know what? You may be a bit richer for your very hard endeavour. But you would be likely to continue struggling in the rest of your life for money.
Money won't make you rich. The ability to mange and keep money helps you rich instead!
"Most of people fail to realize that in life, it's not how much money you make, it's how much money you can manage and keep that matter!"(Robert Kiyosaki). We have all heard stories of lottery winners who are poor, then suddenly rich, then soon poor again. They win millions and are soon back to where they started. Or stories of some World Cup winners - notably, Nobbly Stiles, Alan Ball sold their medals to "secure the future of my family". Unsurprisingly, the lottery winner guy has a big problem in the cash flow management (what I mentioned a bit above) before he won the lottery. And that problem was obviously never fixed. Hence, no matter A, 2A or 100A; one dollar, 1k dollars or millions of dollars you have, If you don't know how to manage it, it'll be gone very fast..
I love the example Harv Eker gives in his famous book (Millionaire Mind): "Saying "I'll start managing my money as soos as I get caught up" is like an overweight person saying "I'll start excersing and dieting as soon as I lose 20 pounds." In essence, you will most likely never get rich unless you know how to manage your money!
Money won't make you rich. Your "stupid emotion" and ignorance about money likewise make you not rich
It's the fear of not having enough money for paying bills, taxes, daily expenses, etc. that makes most of people working hard from day to day. The same fear makes them stressed all nights (yet try) waking up early to earn few bucks everyday. Some realize that hard and boring work, but keep working because of the same fear - the fear of not having enough money!! That old fear continue to scare them, make them stick to their work, hoping (in vain) that money will calm their fears. But it doesn't! "Fear has them in this trap of working, earning money, working, earning money, again hoping the fear will go away. But everyday they get up, that old fear wakes up with them..." (Robert Kiyosaki) A vicious circle continues without ends. Their fears make money is running, controlling their lives. If you continue to be afraid of money, you would become a slave to money.
... and greed
I tend to agree that "Greed, for lack of a better word, is good. Greed is right. Greed works!" (Gordon Gekko - Wall Street movie). But many people work out in the wrong way. Instead of letting money work for them to achieve their dreams, people work for money to satisfy their greeds. They desire money for the joy they think it can buy. Nonetheless, nothing money can buy lasts forever! In fact, the joy that money brings is often short-lived. As a result, they soon need more money for more joy, more pleasure, more comfort, more security. So they keep working, thinking money will satisfy their desire. But again it doesn't!
Once a friend of mine asked me "what's enough?" And I have no answer to that difficult question. Nothing is definitely not enough. But everything may be still not enough.
Money, in short, will not solve our problems. If you don't first handle that fear and greed about money, once you somehow get rich, you'll only be a high-paid slave of money (Robert Kiyosaki) - no more, no less! Many so-called "rich people" are actually living fearful lives. They did think that money could eliminate the fear of not having money, of being poor. Now they're, albeit rich, scared of losing it.
The examples keep coming around me. I know a friend who keep working hard even though he has plenty.
Some rich people are more afraid now than when they were poor. "They're terrified of losing all their money: They don't want to lose their houses, their cars, high living standard... Many are emotionally desperate and neurotic, although they look rich and have plenty of money."
Basically ignorance causes Fear. But in many cases, the reverse also holds true. It's the fear that makes many "highly educated people" fall into the trap of money that they may never escape!**
Sunday Adelaja in his same-title-book also says that "It is time for people everywhere to understand that money will not make us rich, and it will not make us happy. True prosperity will come when we know the laws of money and learn how to abide by them - You can control your money without letting it control you"
Without redundancy, let's me repeat, Money itself won't make you rich. How well you manage your money helps you rich instead. What's more, your stupid emotion and ignorance about money may stop you from being rich.
Out of the box
If you wanna be truly prosperous, as someone has said- and I tend to 100% agree that you must be:
Two out of three are not bad (for many people, one is even enough). But true prosperity, I believe, takes all three!
ps: If your only goal is to become rich, you will never achieve it - John D. Rockefeller (the richest person in the history of mankind)