4 Ways To Reshape Your Views Regarding Money
| February 9, 2012 | Posted by Roshawn Watson under Uncategorized |
By: Roshawn Watson
Perhaps one of the biggest ways to effect change financially speaking is to alter your belief system. I know we would rather focus on the mechanics of personal finance, but that typically only represents 20% of the problem. After all, if people could solve their financial issues with simple mechanics, then they would not likely be in such messes to begin with. We need a conscious shift from the underlying causes of financial misbehavior. Here are four ways to reshape your views regarding money.
Acknowledge That Those Who Have Money Often Serve
Myth: Those who have money are greedy.
Entrepreneur Daniel Lapin has a unique perspective regarding the relationship between money, greed, and service. He calls money certificates of appreciation or performance. For instance, when you get paid, that is the market’s way of rewarding you for your efforts. Thus, your level of income is often related to the problem you have chosen to solve. A garbage man may get paid $10-$15 per hour whereas some corporate attorneys will get paid in excess of $200 per hour. They may both be very good at their jobs, but they solve different problems for which the market assigns different value. Does this mean that people can do valuable services and not be highly rewarded? Of course. The opposite also occurs, as is the case with lottery winners. Nonetheless, professor Walter Williams sheds intriguing light on this issue.
“Take out a dollar bill and look at it. Now pat yourself on your back because you are looking at a certificate of performance. If you did not rob or steal from anyone to obtain that dollar, if you neither defrauded anyone nor persuaded your government to seize it from a fellow citizen and give it to you, then you could only have obtained that dollar in one other way: you must have pleased someone else.”
When I hear of people wanting more money, I don’t automatically think “they are greedy.” In fact, their desire for wealth is cause for celebration because hopefully, it means they are also ready to serve.
Wealth, like happiness, is never obtained when sought after directly. It comes as a by product of providing a useful service – Henry Ford
Recognize That Money Is Not Evil
Myth: Money is evil.
Money is not evil. Never again say “cold, hard, cash.” Instead, try “warm, soft, blessing.” In fact, why would you want more of something that you deem evil? After all, it is hard to move forward confidently if you believe you are on an ill-fated path.
Over the weekend, I was listening to a former owner of a very successful Chrysler dealership. His company had reached very high levels of profitability, and he had never dreamed of making that much money. However, he eventually began to feel bad, as did his employees. He realized that he was conflicted. Deep down, he had picked up the belief that it cannot be good for him to be so prosperous. Granted, this is certainly a good problem to have, but resenting your own success is a problem nonetheless. Even some of his employees began to have doubts regarding him: “how can he have record-breaking month after record-breaking month and not be personally affected?” They began to deliberately slack with regards to sales, not because they wished their boss ill-will but because they didn’t want to lose the kind-hearted boss that they had grown so accustom to.
Likewise, I think we have to be very careful that we are not subtly sabotaging our own successes due to negative feelings regarding money. It hard to pursue high goals with passion if deep down we believe we are headed to destruction.
The lack of money is the root of all evil. – Mark Twain
Don’t Try to Buy Happiness
Myth: More money will make you happy.
Money only increases what you already are. In other words, if you were miserable before you had any money, then you will be more miserable afterwards. However, one Princeton study found that $75,000 was the critical income with regards to happiness: salary increases beyond $75,000 were not associated with increased happiness, and salaries below $75,000 were associated with decreased happiness. Although such findings will always be hotly contested, they highlight the limitations of assuming more money will bring happiness.
Wealth makes an ugly person beautiful to look on and an incoherent speech eloquent; and wealth alone can enjoy pleasure even in sickness and can conceal its miseries. Sophocles, The Sons of Aleus
What money can buy though is fun and entertainment. The challenge arises when one is spending in order to fill a void. For instance, one will typically derive diminished satisfaction from purchases after the thrill of obtaining them is over, which is known as hedonistic adaptation. Consequently, people seeking happiness from materialism are always seeking the next big pleasure. It’s a tiresome, and sometimes dangerous, life. Maxim founder Felix Dennis estimated that he spent a whopping $100 million on riotous living during his earlier years. His downward spiral almost resulted in his death. He recounted what could only be described as a very shallow existence. Fortunately, he was finally able to find peace.
Realize That Money Matters
Myth: Money is completely trivial
While many people don’t explicitly say money doesn’t matter, their actions tell a different story. They spend with little regard for tomorrow, their investments are anemic, and they couldn’t even tell you where their money is going.
The problem is money does matter. It protects your family from calamity, is used to meet your needs and obligations, decides whether you will retire with dignity or will struggle during your elder years, and can help fulfill your dreams and passions. It also affects the influence you can exert over problems and causes that interest you.
When I hear someone being dismissive regarding money, a flurry of thoughts come to mind, such as, “is this person genuine?” For example, there’s are plenty of people who say “I don’t care about money” but will almost get hit by oncoming traffic by diving for a quarter they found in the middle of a street. Obviously, such people lack credibility. I also wonder “if this person is financially independence or at least very comfortable”; if you have already hit certain key milestones, then the topic may be less interesting. I also wonder “is this person informed?” I’m constantly surprised by how many high-income professionals that disregard their finances. Some even believe money is the most “easily renewable resource.” The major downside to this paradigm is it is typically only after something diminishes that primary income source that such people recognize the precarious positions they are really in.
Closing Thoughts
Your perspective about money is affecting your decisions and ultimately your wealth. Don’t blindly accept these misconceptions as fact just because they are oft spouted as truth. Each of these represents a major hindrance to abundance. How can one harbor strong negative feelings about wealth-accumulation, seek spiritual enrichment from income, and blatantly disregard his finances for extended periods and experience lasting prosperity? Uproot these toxic beliefs and free yourself to experience the abundance that you and your family deserve.
Related Posts
Is Extreme Frugality For You?
4 Things To Stop Doing With Your Finances
Copyright 2012, Roshawn Watson, Pharm.D., Ph.D. All Rights Reserved.
The first major decision a person has to make about their future probably begins with selecting a college or deciding to get a job right after high school.
IMO, money is certainly not evil in and of itself, but the love of money and the pursuit of money (greed) can cause serious problems. A healthy respect of hard work and the value of money are much more important for me.
I like the view that money is a reward for solving a problem or task. I'm now going to solve whatever problem Lady Gaga's solving, because she's rakin' it in!
Money isn't evil, but how you make money and how you use it is what makes it good or evil.
Well said. I was going to say something similar. Money provides opportunities and can make some things easier, however, the drive of greed is when the benefits cease and the problems begin.
I agree. Those are major decisions. I would add another major decision is to pursue financial independence and/or whether you want to even be an employee at all.
You have a beautiful site by the way.
I so agree. People who love money are not fun to be around. They poison their environments for financial gain. That's not the kind of person you want to do business with or even be on a project with. Respect is very different and very important, as you have indicated.
I agree too! Greed is ultimately a spiritual issue that has tangible ramifications financially and relationally that cannot be discounted.
Then, it is officially your job to entertain millions!!!
I agree. I would add how you feel about your money too IMHO. That's because if you thirst for it as an obsession, even if you make it legitimately, your heart and values will be all wrong!
I belong to the camp that believes that most of our issues with money are mental rather than mechanical. Hence, it is very important to change our mentality and stop ignoring, vilifying, glorifying or simply ignoring money. It is a medium and can be mobilised for good or evil.
Money has always been fascinating to me! I learned all I can about it and followed my passion as a career in finance. I rose to CFO and turned some rental property into a business. I started businesses and enjoyed the financial freedom. Now I find myself in semi retirement teaching and enjoying the accumulated savings. Money can be very useful if you know what to do with it.
Is that $75,000 before or after tax. 🙂
Good post about money. I've always liked money and never thought it is evil or anything like that. I never did anything bad to obtain the certificate of performance and I'm proud of how far our family have come.
I heard an interview on the radio one time where the man being interviewed was a world famous lead guitarist who had spent decades in self destructive behavior and the question was why. His answer fascinated me. He said that when he was a kid he had poor self esteem and he thought becoming a rock star would change all that. He found it didn't. I think people strive for money sometimes because something else is out of whack. This leads to them never having enough and in fact leading a life of misery. Others looking at them can't figure why they are so unhappy.
You rightfully cover the full spectrum. Our societal hang-ups regarding money are anything but simple.
You always have healthy dose of wisdom regarding finances and such varied experience. It always makes for an interesting read. Thanks so much for sharing your life! It is an education 🙂
Hahaha. I guess if it was after tax, then you would have to bump it up to 100K :).
Thanks Joe! You should feel honored and "pat yourself on the back" for achieving so much before 40. You are decades ahead and should be applauded.
Great story and great comment. I too look at people and wonder how could THEY be miserable. The old saying is don't judge a man until you walk a mile in his shoes. That story almost precisely the same thing that I referred to in the post. People THINK their problem is financial, when really there are underlying issues that are truly dominating and possibly ruin their lives. It's all so tragic, yet too familiar. Thanks for sharing!!!
Shawn,
Excellent post. You've articulated well that most of our financial problem lie in our own belief system. As someone has said, "Change your thoughts to change your life."
Money is but a means to en end in that it does nothing but amplify everything about you. If you were an unhappy person, you will just be unhappy while owning a nice home, luxury cars, and taking vacations in luxurious locales. I sincerely believe money doesn't change people, it just gives them enough backbone (for lack of a better word) to be who they really were in the first place.
Perception is everything, especially money. We can put too much weight on it's importance to the point of being stressful or jealous. The opposite can be true too. Too bad we put so much emphasis on money=success.
Thanks Shilpan. I have always loved that quote!
I love the way you describe that. That's why some people are so exaggerated: they have more financial backbone to be themselves.
That's an interesting point. You are many markers of success, so I'm with you there. I do think we often can put way too much wait on materialism. Honestly, I do not think we place enough emphasis on wealth-building. of course, as PF bloggers, we're skewed, but I think our readers appreciate sites dedicated to improving their financial lives. If there wasn't a need, we wouldn't have readers. I also agree the we see the entire spectrum too. Cheers, and thanks for your comment!
I agree with money being a reward for solving a problem. It takes a special talent to make those decisions that affect millions of people internationally.
Great post. For years I was "afraid" of money, credit reports, etc. Then I started reading up and learning from others. Now, I know to ask questions and to SHARE knowledge.
Special talent indeed. Everyone is not equipped to do that. Thanks for the comment.
Thanks so much EH for your comment. It is certainly a journey for us all. It's a amazing how enriched we are becoming through the collective sharing of our experiences and knowledge. Kind Regards
Awesome post. I believe many of these myths are excuses for people who don't have much of it. When I was younger, I believed in these myths too. Loved the money is evil one. If you really think it is evil, unless you want to be more evil yourself, you won't make any more than you currently have.
I'm thrilled you included the Princeton Happiness Study – I'd read that back in the fall and found it to be eye-opening. And as for your first point, just look at Warren Buffet or Bill Gates; both are incredibly wealthy yet are always making huge donations to charities.
Good point. People are so weird with regard to money to their own detriment. It hurts when we have an unhealthy relationship with our money. thanks for the feedback. Cheers!!!
Great observation regarding the irony.
Yeah, when it came out, I knew it would be debatable. Nonetheless, I liked it. There have been other studies supporting its findings too.
Great point about Buffet and Gates, and many others. They are real life super heroes with respect to their giving. Cheers!!!
Right. It's the love of money that is the root of all kinds of evil … not the money itself.
Bingo. That's one of the most oft misquoted scriptures there is 🙁
Thanks for the comment. Cheers!!!
I think many people spout of some of these money sayings to justify their own behavior. Money is not evil. Stomping all over people to make money is what is evil. Money can rescue people, make life easier, provide medication and shelter for people, etc.
Well stated! Agreed! Agreed! Agreed! I have nothing to add.
Great article. A good read about how to see money is "Wealth Attraction for Entrepreneurs" by Dan Kennedy.
Good article, I think it is so important to understand you relationship with money. It's great to 'love it' because you tend to attract what you believe, but it is also good to know there are a lot more important things in life as well.
Ha! When someone around me is completely dismissive of money, or the power of money, I always figure I'm going to get stuck paying for their lunch.
Thanks so much for the comment and the recommendation.
Thanks Shaun!
Yeah, I view it personally as tool. Of course, there are many more important things that should occupy our time.
Hilarious! That actually sounds like a safe assumption. People who truly don't respect it generally don't have it or don't have it for very long.
The reflexive envy that most people hold towards "the rich" is perhaps one of the more damaging myths that needs shedding. It allows politicians a hot button to press at voting time. I've even heard self-avowed free-market types rail against "the rich" paying their "fair share".
That's good: ranking the myths. I really have a problem with that particular one. In fact, I have spoken about it a lot but got so tired of the hate mail (why do people send me hate mail for that statement? I guest because I'm calling out their mess). Anyway, I do agree a lot of people exploit it for their own political, personal, and financial gain. It's quite disgusting especially considering how most people who are called "the rich" get their money.
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