Saturday, November 20, 2010

Money won't make you rich

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!* ("Rich Dad, Poor Dad" - Robert Kiyosaki)
----------------- by Sarah Chong 
Nowadays, people're highly obsessed with money and ... $. With How to make money; How to earn more, work less; Make money fast, get rich quick and many, many more, MONEY has become a buzzword. Because of its high profile, money is also at the heart of many debates over the notions of wealth. "Will money make us rich?" is one of those...
Money is inherent in everyone's life. We all want it. But will money really make us rich? Contrary to popular belief, the answer is surprisingly NO. This article will go further and give you a full answer of this paradoxical question.

Although it's a bit long, I hope you enjoy and benefit from it.

Rich!? Say it Right! 

According to Oxford Advanced Learner Dictionary (OALD), 'Rich' means having a lot of money. The rich likewise are those have a lot of money and property. Truth be told, many so-called "rich people", who earn and possess plenty of money, can't stop working. Some even have to work harder. In contrast, many people really enjoy their lives without working nor worrying about money. In other words, they're financially independent! Are these two kinds of people different? (Give it a thought!) 
Up till now, rich is always accompanied by money (and money alone). Is it the time for us to give "rich" a better definition, a better name which sounds right for most of us? ... - Financial Freedom!? Why not? (Who can claim those with financial freedom don't possess lots of money?)

Keeping it in mind, Money won't make you rich.  But the lack of money makes you poor!

Money is essentially important!

-Many people are dying of starvation in Africa because they can't afford food and medical services.
-Many kids are growing up with low self-esteem because they don't have what they deserve.
-Many marriages are broken because of stresses 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

Many people strongly believe that money will make them rich. This is why they all go to school, get good grades to go on to University, get good grades to become doctors, lawyers and other professionals that will earn them a lot of money!! (Have you well followed this path?) They think the more money they earn, the richer they become. Unfortunately, it never really work out that way. And this is where the flaws in their thinking come from. To illustrate, let's me give you a simple example:
Let's say, you income was ($)A. You also work part-time at night. So you double your income (2A). What's more, you're fortunately promoted for your hard working. Altogether your income is 3A.
With money, girls're sure around U...
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 may have nice cars, big houses, impressive luxuries and lots of beautiful girls (boys) around or even be a bit richer for your very hard endeavors. But you know what? You have to work harder and harder because your expenses keep increasing. In all likelihood you will continue struggling in the rest of your life for money. Sure, money makes you comfortable but won't make you rich!!

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 matters! (Robert Kiyosaki) *. Yep, money does make you "financially rich" but only in the short term (or even a moment)!! And such a big amount of money doesn't guarantee you wealthy for your whole life. We have all heard stories of lottery winners who are poor, then suddenly rich, then poor again. They win millions and are soon back to where they started. Or stories of some World Cup champions - notably, Nobbly Stiles, Alan Ball sold their medals to "secure the future of my family". Lamentably yet unsurprisingly, these guys have big problems in their cash flow management (what I mentioned a bit above) before they championed or won the lottery. And those problems were 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, you'll lose it sooner or later... I love Harv Eker's example given in his famous book (Secret of Millionaire Mind): "Saying "I'll start managing my money as soon 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!
the fear 
 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 be running, controlling their lives. Thus 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 it out in the wrong way. Instead of letting money work for them to achieve their greeds (dreams and ambitions), 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-livedAs 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 desires. But again it doesn't! Money won't make you rich nor satisfied. A friend of mine once asked me "what and when is 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. And 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 - no more, no less! (Robert Kiyosaki) The examples keep coming around. I know a friend who keep working hard even though he has plenty. Additionally and amazingly, there are many so-called "rich people" 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, terrified of losing it - losing their money, their cars, their houses, their luxuries.. Some are even more afraid and scared now than when they were poor, 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 'ancient fear' that makes many so-called "highly educated people" fall into the trap of "money emotion" that they may never escape!

You may now have a lot of money. You may now have very little. But the fact is that money itself won't make you rich. What you do with your money will make you rich or poor. Know how to do with your money actually determine how hard it works for you. With a strong financial literacy, a little bit of money can work very hard for you. Otherwise, you have to work for it (because it's very important!). Once you work for it, it's very hard for you to stop working (for money)!! Do remember, "the rich never work for money!" (Robert Kiyosaki) Sunday Adelaja in his same-title-book also confirms 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"... 
Hopefully, after reading the article, you would say "I've big dreams and I'm chasing them" (NOT "I've lots of desires and I'm chasing money!") at the very least.

I'm really stoked that you've reached here. But it's not the end yet...

True Prosperity comes in

Heath and Happiness are the keys to true success n prosperity
We've tried to give a better name for "rich". How about prosperity? What's true prosperity? Do prosperity simply mean rich? Well, as someone has said- and I tend to 100% agree that if you wanna be truly prosperous, you must be:
1)    Healthy
2)    Happy
3)    Wealthy
 Two out of three are not bad (for many people, one is even enough!!). But true prosperity, I believe, takes all three!

* Most of the quotes cited above are paraphrased
* You can read the first version of this article here
"If your only goal is to become rich, you will never achieve it" - John D. Rockefeller (the richest person in the history of mankind)


Anonymous said...

Fantastic post! It's just great.

Anonymous said...

Nice post!

It reminds me of a talk about being a millionaire of memories, instead of dollars, by creating and collecting special moments in our life, e.g. doing something for the first time, meeting interesting people, travelling and so on. These moments are not only good for us; they may also inspire others (when we tell them our stories).

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