Last week, we began this series on Time, Money and Life-
Balance by looking at time. I argued that you cannot
manage time. Your only choice is how you manage yourself
so you use time effectively.
This week, we turn our attention to Money, and the good
news is that there is an abundance of money, and it is all
around us! Most IMPACT subscribers will earn several
million dollars during their careers, so there is plenty to
work with. And, it can be replaced, managed, and invested
to create even more! The only stipulation is that you are
fully responsible to manage it well.
This can be difficult, because money is not "real". Money
is simply an invention, or a concept, that allows us to
quantify the value of our contribution to society. I saw a
story on diamond mines the other day, and while they earn
millions of dollars every day, one man pointed out that
this is a "miracle of marketing" since we don't use
diamonds for any practical purpose. They are merely
pieces of compressed carbon.
But society values them very highly because we like diamonds!
The ancient rule is that to earn more money, you must
produce more of what society values. To make more,
contribute more.
Secondly, to become wealthy, you must invest some of the
cash you receive as "seed" to produce even more money. As
I point out in my Road to Riches class, most people will
never earn large amounts of cash, and even if you do, taxes
and temptation make earned income the LEAST efficient way
to achieve wealth. A far more effective path is through
investment.
Saving five or ten percent of your income and investing
it over time is a simple, powerful and nearly full-proof
recipe for wealth. It's simple, but not "easy".
We live in a consumer society that encourages us to spend
every penny we earn, and even a bit more. I recently read
that Americans get 3000 marketing messages per DAY! No
wonder we spend until the money is gone.
The Road to Riches is paved with small, consistent
investments that accumulate over time. Einstein referred
to compound interest as the "eighth wonder of the world."
The cost of your morning latte, invested daily, will make
you rich in 30 years. There is no mystery here.
Money wants to grow. It wants to flow into the hands of
people who treat it well and use it wisely, but most of us
have never mastered the art of managing money and becoming
rich.
Fortunately, there are thousands of books, and dozens of
magazines available to help you. There are classes and
workshops, professional advisors and other resources all
around us, and yet most people have never seriously studied
money, and that's a shame.
Do yourself a favor and master the art of money. Avoid or
get out of debt. Spend less than you make. Save the
difference and invest over time. Treat money as an honored
guest in your life, one who will quickly flee if you do not
treat her well, but one who will stay and enrich your life
beyond measure if you treat her with skill, care and
respect. This is not difficult, but it is an art most of
us have never mastered. Study money. Learn to invite it
into your life, and encourage it to stay once it has come
to visit.
Balance by looking at time. I argued that you cannot
manage time. Your only choice is how you manage yourself
so you use time effectively.
This week, we turn our attention to Money, and the good
news is that there is an abundance of money, and it is all
around us! Most IMPACT subscribers will earn several
million dollars during their careers, so there is plenty to
work with. And, it can be replaced, managed, and invested
to create even more! The only stipulation is that you are
fully responsible to manage it well.
This can be difficult, because money is not "real". Money
is simply an invention, or a concept, that allows us to
quantify the value of our contribution to society. I saw a
story on diamond mines the other day, and while they earn
millions of dollars every day, one man pointed out that
this is a "miracle of marketing" since we don't use
diamonds for any practical purpose. They are merely
pieces of compressed carbon.
But society values them very highly because we like diamonds!
The ancient rule is that to earn more money, you must
produce more of what society values. To make more,
contribute more.
Secondly, to become wealthy, you must invest some of the
cash you receive as "seed" to produce even more money. As
I point out in my Road to Riches class, most people will
never earn large amounts of cash, and even if you do, taxes
and temptation make earned income the LEAST efficient way
to achieve wealth. A far more effective path is through
investment.
Saving five or ten percent of your income and investing
it over time is a simple, powerful and nearly full-proof
recipe for wealth. It's simple, but not "easy".
We live in a consumer society that encourages us to spend
every penny we earn, and even a bit more. I recently read
that Americans get 3000 marketing messages per DAY! No
wonder we spend until the money is gone.
The Road to Riches is paved with small, consistent
investments that accumulate over time. Einstein referred
to compound interest as the "eighth wonder of the world."
The cost of your morning latte, invested daily, will make
you rich in 30 years. There is no mystery here.
Money wants to grow. It wants to flow into the hands of
people who treat it well and use it wisely, but most of us
have never mastered the art of managing money and becoming
rich.
Fortunately, there are thousands of books, and dozens of
magazines available to help you. There are classes and
workshops, professional advisors and other resources all
around us, and yet most people have never seriously studied
money, and that's a shame.
Do yourself a favor and master the art of money. Avoid or
get out of debt. Spend less than you make. Save the
difference and invest over time. Treat money as an honored
guest in your life, one who will quickly flee if you do not
treat her well, but one who will stay and enrich your life
beyond measure if you treat her with skill, care and
respect. This is not difficult, but it is an art most of
us have never mastered. Study money. Learn to invite it
into your life, and encourage it to stay once it has come
to visit.
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