Money Is…

Money is created from within you when you add value in a way the market recognizes.  If you don’t earn enough, you need to better understand the market and demand what you are worth, or you need to find a different career where what you do is appreciated by the market.  Alternatively, you can be sad that the market doesn’t find your skills valuable, make your peace with that, and stay with your current career because it is a passion and you understand staying where you are and being angry only hurts you.

Money is a tool, a means of exchange, that we use because bartering is difficult.  If I raise sheep and you give haircuts, where do you store the sheep after cutting my hair?  What if you’re vegan and don’t like wool because it’s itchy? Exactly how many haircuts is one sheep worth?

Money is a way in which what you demonstrate what is truly important to you, not just what you think you should believe is important.  If you get a new car every few years but have nothing saved for retirement, you are saying that being a person with a new car now is more important than being a person who is financially secure then.  That’s actually totally understandable, as humans have a hard time delaying gratification.  But the future is coming, ready or not, and in the US retirement is a DIY project, so you’d best get on it.

Money is taboo in our culture, and I think it’s time for that to change.  Many of us are more comfortable talking about sex than about money.   Financial education is a way to break that taboo and lose your fear.  There are tons of people in the world looking to separate you from your money, and many will think that by doing so they’ve done you a favor.  Understanding how they are paid will help you understand their motivations.

Money is everything and nothing.  The balance on the statement for my retirement accounts changes nothing for me today and feels a bit abstract and meaningless.  But your net worth is, in my opinion, the truest reflection of whether or not you are “winning” with money.  So many advertisers will tell you that owning their goods or using their services will allow you to buy happiness.  But happiness comes from within and isn’t for sale.  With that being said, with money, I can buy chocolate and that brings me happiness, so your mileage may vary.

My dad used to say money doesn’t grow on trees, which I thought was a weird thing for someone in the timber industry to say.  Yeah, it doesn’t grow on trees, but you cut them down and turn them into timber or paper that you sell for money, so isn’t that the same thing?  It’s good to teach your children the importance of stewardship.  Promoting a scarcity mindset is damaging and comes from a place of fear.

They say money doesn’t but happiness, but I say it makes a good down payment.  What does that say about me that I need to work on?  What do you need to work on?

Fix your money, fix your life, because money is a metaphor for your life.  Are you in line with your values?