Money was created historically to replace the barter system,
to work as a medium of exchange.
Today, it would not be incorrect to say that the world
revolves around it.
Kingdoms have perished and so have countless lives and
cultures all in the pursuit of it.
Countless lives have also been bettered, saved and numerous
countries and their citizens uplifted because of money.
Money in the right hand is an asset, in the wrong a
liability.
You can tell a lot about a person by not how much he makes
but by how he manages what he makes.
The
Value of Money
Technically speaking the value of money is all about supply
and demand, the money you have in hand today (no matter how small the amount)
is multiple times more valuable than the money you will/might have tomorrow (no
matter how big the amount).
Life is anything but technical though.
Contrary to popular belief, money does not change people.
It only brings to the fore and limelight who they already
were but with options aplenty.
If you were prudent with your money when you had limited
income, you will continue to do so even when your income grows.
If you collected debt with limited income, you will
continue to accumulate debt with an increase in your income.
If you cannot manage a small amount, you cannot handle a
bigger one.
Money gives you options when you feel like you had none,
this is both a blessing as well as a curse depending on you.
If you invested earlier, you will invest more and in more
avenues you never considered an option before.
If you bought that latest smart phone on emi earlier, you
will buy an even more expensive one you never considered earlier.
Additional reading: Click Here to read about mutual fund mistakes you should avoid making
Principles
Principles/ethics/morals whatever the synonym you subscribe to is personal and subjective.
What is immoral and unethical for one may not be for another
and vice versa.
Where you draw the line is completely up to you no matter
how hypocritical that may sound.
A person struggling with a job hunt will go with the first
offer, no matter how immoral or unethical he may find the business.
Remember the key word here being immoral and not illegal.
Being financially independent allows you the ‘privilege’ to
stand your ground and not succumb to the first job offer.
Having
a Spine
Humans are vertebrates meaning they have a spine, money
allows you to use it.
Money changes the way you speak, it makes you confident and
more importantly it gives you the strength to look into another person’s eyes
when communicating, an art form that needs refining.
Money allows you to do both, speak your mind and walk the
talk.
You can walk away from a job that does not respect you
enough.
You can buy that slightly expensive product from a brand
that engages in ethical practices rather than one that is cheaper but resorts
to immoral practices according to you.
It is one thing to have a strong belief, another to actually
have the ability to execute that strong belief.
If you can walk, you might as well walk with a spine.
Debt
Debt is a terrible place to be, financially or otherwise.
Debt ages you, it makes you miserable.
It takes planning to both avoid it and once in it, to get
out of it.
It lowers your self esteem and makes you less optimistic
about the future.
It rushes you to pick the cheaper option rather than the
more valuable one.
Debt is a vicious cycle, the harder you try to get out, the deeper
you get entrenched.
It lowers your ‘worth' in your own eyes, the worst form of disrespect.
Relationships
Money changes the way you look at others and how others look
at you.
This is not about validation, far from it.
A person with money upgrades both his thoughts as well as
the people he is surrounded with.
This does not mean he looks down on those less fortunate but
rather is selective about his company.
You would rather seek an exchange of ideas that enriches you
mentally, emotionally and practically than be an audience to someone constantly
wallowing in his misery caused by the lack of money.
That is indeed a harsh perspective towards life, the real world where you live your life does not care about your perspective !
One of the greatest gifts that money can provide you with is
both the ability as well as the privilege to say no to others.
Perspective
Your perspective about money and towards money has a lot to
do with your first impressions of money.
Kids are impressionable and seeds planted during childhood
are often very difficult to shake.
Someone who has seen what the lack of money can result in
will pursue it aggressively.
Someone who has seen a conservative approach towards money will
more likely take that path as well.
Those who surround themselves with others that are comfortable in their
limited means may most likely never get out of that comfort zone.
Your initial understanding of money, watching your parents
approach towards it, your first pay cheque and the sort of money conversations (if
any) you have with your circle goes a long way in influencing your approach
towards the pursuit and management of it.
Your parents and their parents were right in their belief of
avoiding risks with money and thereby the affection for fixed deposits to grow
the capital.
The same is true today as well except that complete amount
in fixed deposits would mean erosion of capital.
The definition of risk is still the same, only the mode to
avoid has changed.
You were raised in a different yesterday for a different tomorrow,
do not feel guilty to think for yourself today.
Peace of mind
Money gives you peace of mind, you are less worried about
the future.
Abundance does not mean life is stress free, it only means
you worry less about your needs.
You are less worried about being laid off and an employee
that works with less worry is more valuable to his organization.
If you plan well then you worry less about the usual
landmarks of life, from buying a house to your kid's future education.
Mind you though, abundance does bring along with it its own
set of problems but that’s life for you, if it wants to worry you then it will
always find a way.
A man who sets aside an emergency fund worries less about
what if !
Respect
Respect is a two way street, something that sadly still needs to be stated in today’s time and age.
If you do not respect your money, do not expect it to reward
you.
People often complain about decreasing disposable income and
increasing cost of living and yet have endless subscriptions that rarely gets utilized.
They harp on about the struggles of making money and then end
up taking financial advice from those unqualified to do so, you would think the
constant struggle of income would make them rethink this approach but not
really.
You would think they would value their hard earned money
considering the struggle but alas!
From a colleague to a relative to that random facebook
group, everyone gets their moment of attention under the sun.
Except of course the one who is professionally qualified to
do so, that is too boring !
A bit like getting an important medical surgery done on
yourself by someone other than a qualified doctor.
We are living during times of unlimited information with
limited knowledge.
It makes no sense and yet it does, human behaviour is as
predictable as it is unpredictable.
If you are still stubborn on digging your own grave then rather
take financial advice from someone living today on yesterday’s meagre income
than from someone living today flamboyantly on tomorrow’s income.
Money is not the most important thing in your life, neither
is it any less important than your health and relationships.
Life is akin to yoga, balance is key.
The isolated and aggressive pursuit of anything with no
regard for anything else is unhealthy, money is no different.
Yet society celebrates and perpetuates the quintessential notion
of romance in various art forms from novels to movies, the commercialization of
which has been providing regular income for centuries but brands anyone engaged
in the pursuit of money for the betterment of life as materialistic.
Acknowledge the progress achieved by society, don’t
overestimate it though.
Being money minded does not equate to being materialistic.
Money is no guarantee of happiness but it sure does make
your life comfortable.
There is absolutely nothing romantic about being poor
although philosophers, poets and painters may have a different take on it and
yet have their work published, sold and auctioned.
The poor appreciates art, the rich is enamoured by it but
the wealthy actually collects it.
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