Financial Freedom
Lesson 5: Money myths
1. The Monetary System
2. The Flow of Money
3. Greed and Money Attraction
4. Luck and Gambling
5. Creating Your Own Reality
6. Money and Spirituality
7. Doing What You Love
8. Get Rich Quick
9. Being Cheap
10. Affordability
1. The Monetary System
There are endless myths and illusions about money — including those promoted by various authorities in the name of dispelling myths. Even the Federal Reserve has tried to convince Americans that it is part of the Federal government, or under its control, when that is completely untrue. The Fed controls all the money, and it is a private company, looking out for its own interests.
One of the biggest myths about money — the paper currency or bank notes we use — is that it has any value at all. It has none. It is not "real money," only notes issued by a private banking corporation (the Federal Reserve). Money in the US was once a government note giving the holder the right to redeem the paper money in gold. Nowadays, since the formation of the Federal Reserve corporation, and the removal of money from the gold standard, what we call "money" is backed by nothing of any real value. As long as most people accept this illusion as reality, and the purchasing power of money doesn't change drastically in too short a period of time, Americans are content to live with this grand deception. Of course, the whole financial system almost collapsed, when the stock market fell in 1987, and soon thereafter the banks were basically bankrupt. Only some last minute financial sleight-of-hand by the Federal Reserve corporation kept money (and all stocks) from becoming truly worthless.
The whole field of finance is filled with delusions, on the grandest scale and on the most personal level of our own lives. The extent to which financial institutions keep inventing new forms of financial instruments — such as derivatives, which are little more than gambling — betting on various futures or trends or mathematical analyses, is beyond belief. Countless billions of dollars are poured into such delusory investments, in the hope of some magical new profit. That is what financial institutions — with the most highly educated economists and financial experts — do with money. They imagine they really have all the answers — and tell us that — when often they don't have a clue. It's just so easy for them to play with other people's money, and get highly paid for it.
No matter how scientific all the economists and financial experts may pretend to be, finance is basically a philosophy, not a fact. There are few "truths" about money that everyone agrees upon, and that includes the experts. One person's philosophy is another person's myth or illusion. For example, a film school graduate borrowed as much as he could using his credit cards, produced a movie, and made a big profit. Maxing out his credit cards worked for him; he took a risk, gambled, and won. But, in most cases in which a person gets into as much debt as they possibly can, it does not work out for them. Believing in maximum personal debt ruins far more people than it serves.
Money is a philosophy. And, what keeps people from having more money is a lack of financial literacy; lack of awareness, perspective, or vision; lack of inner guidance or self-directedness; or, lack of creativity, knowledge, or confidence. It doesn't take money to make money, as much as it takes knowing how. The proper philosophy or relationship with money isn't merely believing that there is so much of it that it will come to you by merely thinking or "attracting" it; but, rather it is knowing there is plenty to go around — and you can have some too.
Generally, making money takes a lot of hard work, at least the first million, or so they say. People who are creating wealth have to put in a great deal of time and energy, be creative and effective, and meet some real needs in the world (or, these days, people's artificial needs or illusions).
But, it simply isn't the case that the harder you work, the more money you make. There are many people working two or three jobs, often at minimum wage, just to make ends meet. All the "intentions" to get ahead, and all the hard work, do not necessarily bring anyone wealth. You have to understand the way the system is set up, the way it works, and what it takes to generate income in excess of your present needs — and invest it wisely. Otherwise, it doesn't matter how much money flows to you, it will all just flow away, if not now then later. The idea is to hold on to some for a while, and have it work for you.
Realize, they keep printing money all the time, and there is more money available every day. Wealth is being created all around the world. Decide for yourself what you wish to accomplish in your life, and then develop or find the resources to do it.
Money represents different things to different people: hope, fear, pleasure, fulfillment, comfort, peace, pride, power, status, wealth, superiority, and so on. It is important to realize that money is none of these. It can be used to foster the experience of any of these things, but it is, by itself, just a bunch of numbers in an account, or so many pieces of paper.
2. The Flow of Money
There is a great deal of money in the world, and its flow is tightly controlled. Governments are controlled by money, more than they control money themselves. Some popular "money experts" suggest that we, as individuals, do not have enough money in our lives, or proper control of our money, because we fear money or believe it is dirty. That is not true.
A typical New Age belief is that money flows like water, and it keeps circulating, and the more you let it go the more will come back to you. This belief is often made into a kind of mathematical formula, in various spiritual or religious circles, stating that what you give away comes back to you multiplied by a factor of ten. If that were true, it would work for 100% of the people, 100% of the time. Not in this world.
Some New Age philosophies say that "holding on" to money means a person is "coming from a place of lack," and that they need to let money flow freely. They need to let it fall from their hands, and spend freely, and then it will return to them, multiplied. Again untrue. Lots of people spend freely, and it doesn't make them rich, but poor.
Then there are the rich, who believe in keeping all the money they can get their hands on, regardless of the fact that others have needs, and they might be able to help in some way. In this category are typically billionaires and the wealthy elite in society. They believe only they are entitled to have money, due to birth, social status, inheritance, cunning, or their power or control. They feel richer the more people are poor. This is why — in reality — in every country around the world, especially in America, the rich keep getting richer and the poor keep getting poorer. That is the reality, regardless of what anyone may prefer to believe or imagine.
The "trickle down" theory of economics, so widely promoted by so-called Christian conservatives, in the richest segment of society, declares that the more money they have — at the top — the more trickles down to everyone else. They declare, so very self-righteously and smugly, that the richer the rich are, the better off the poor are. And, this is simply not true. It is a very big lie, and yet, much of our economic policy — determined by the elite — is designed to cater to this illusion. As is the legal system and the tax system — which, after all, the elite craft to serve their own needs.
The way this world is set up, wealth and power have always been concentrated in the hands of a very small percentage, the elite, the aristocracy, royalty, or the robber barons.
Because money is so abstract, and because it represents all that we may own, there is always a concern that it can go away. That concern is based upon what we experience in the world around us, and is inherent in relying upon something that has no value to represent and control what does.
There is a flow to money, all around the world; it does circulate. And some people make a lot of money by controlling the flow of money. It is ironic that your government demands an accounting of your every dollar, yet has no idea what happens to billions of dollars it loses here and there.
The more money that is printed, and the more quickly — which is what the Treasury does — the less that money is worth. More money does not equal more wealth. There is, at any given time, a given amount of money in circulation. Over time, it increases, partly due to inflation, partly due to the creation of wealth, and partly due to the demand for money by the banks. The amount of money available is not fixed; it is growing, but there is not enough for everyone to be rich.
One way to think of this is, there is enough money to go around, to represent our labor, goods, services, property, and resources; but there isn't enough for everyone to win the lottery all the time. That's how the system functions, intentionally, so that those who have money, power, and influence retain it. And this is why the rich keep getting richer and the poor get poorer, over time. Government intentionally misspends trillions of dollars, especially in war, to make a great deal of money for the powers that be, and to keep the poor enslaved to the increasing national debt. The economic system has been shifted into a state of perpetual lack — debt — and away from any real abundance. Abundance is the illusion, lack is the reality.
The idea of "lack" or "not enough" is abhorrent to New Agers, who cannot conceive of a world in which they cannot have everything they want, who feel that they deserve everything, and that the universe exists to cater to their every desire and whim. Most of them are not in touch with reality, but prefer to live in an illusion.
It seems to be more the case that ignorance and unawareness separate ordinary people from their money, while cunning and control bring ever more riches to the elite. All of the wealth seems to collect at the top. And, none of the lies, myths, illusions, or deceit about money ultimately serves you.
3. Greed and Money Attraction
A news magazine show "exposing myths" declared greed really is good. And they had all kinds of statistics to prove their case, declaring that greed is the motivating force that drives the US economy, and that those who amass the most money and resources are actually serving mankind the best. They dispelled the "myth" that there is anything wrong with greed. And, of course, they were quite wrong. There is something very wrong about greed, and those who defend it or glorify it.
Greed is an insatiable desire for more — especially more money. There is nothing inherently noble about materialistic desires, and the more obsessively people pursue profit and money, the less likely there is to be anything ethical or moral about it, either. The robber barons of previous centuries, who monopolized industries and made fortunes, were seen for what they were in their own time. Today, they are glorified for "going for it." It is ironic that our news often comes from Rockefeller Center (named after one of the worst robber barons of all time), brought to us by multi-billion dollar corporations with vested interests. A bit of public relations and "philanthropy" can turn the worst, cut-throat, billionaire, business predators into "nice guys"; and it still works today.
Greed has been democratized; today, everyone can believe that they can have everything they want. With the rapid decline of spirituality in our society, and the corresponding rise of materialism and hedonism, the rich are worshiped and glorified merely because they are rich.
The New Age belief is that we are all living in a world of "abundance," where everyone can be rich, and all they need to do is believe that — and not believe in "lack" — and it would be so. Well, not really. It has never been that way on this Earth, and it never will be, not in reality. The belief that we can all be rich merely by thinking and believing, affirming or praying, "intending" or "attracting," is false. It only makes all the people who cannot "think" their way to riches feel like failures all the more — or are all the New Agers millionaires? And, what of the billions of people worldwide who are born into poverty? If they have a belief in poverty at birth, why? Why can't they just as easily —or more easily — believe in wealth?
The greedy view is that there isn't enough money or wealth to go around, so if we are seeking more money we need to make sure others aren't' doing that too, or that they don't know what we are doing, because then there might be less money for us. That is the actual financial philosophy of a popular money-making best seller. And, it too is quite false.
The truth is somewhere in the middle. There is enough money for us to have what we need, and to create or build wealth. And, not everyone is going to do that. In fact, only a very small percentage of people ever has, or ever will. That's financial reality. It doesn't mean we have to be coming from a place of lack, or believe that there isn't enough to go around, but we need to be realistic.
Another theory of money is that we can attract money, or like attracts like. But, in this world, opposites attract at least as often. Find a good person with a generous trusting nature, and you may find somewhere around them — or attracted to them — a cunning, manipulative, person who wishes to take everything they can from them. It does not pay to be naive in regards to money, or to assume that simply because you are a good person or trust others, that they deserve your trust or your money.
In fact, this world is full of exploitative mechanisms and people and institutions that exist for the sole purpose of separating people from their money, or taking away the good in their lives. There is such a thing as evil and wrongdoing, corruption and exploitation, theft and graft, usury and foreclosure, pain and suffering.
There are forces in our lives — beyond the beliefs we may have — which determine what happens to us in our lives, in ways that we could not even imagine. Money is not like some law of physics; there are no laws or rules of money, no matter how many promoters or hustlers try to convince us so. There are things such as karmic forces — the choices we make and the consequences of our actions in the real world — which shape our life experience, now.
It is not people's beliefs that give them a less than rich life; it is the global conditions of lack, suffering, unawareness, ignorance, and limitations they live in, which causes them to believe life is that way.
4. Luck and Gambling
There is a reason why Americans gamble nearly 100 billion dollars per year, and the word which best describes it is: illusions. Everyone believes they are going to win. Just take a look at Las Vegas, the fastest growing city in America, built entirely on illusions of "luck" and "winning" at gambling, and the money of countless losers. Billions of dollars pass through there, and fifty thousand people move there every month, to support the gaming industry and casinos. And, it is all built on people losing money, especially when they feel "lucky."
People have a feeling — something they actually feel, a rush, a sense of anticipation, a shot of endorphins or adrenaline — and they interpret that as "luck." They are trained to go with their impulses, their emotions, their egos, and, above all, their social conditioning. They feel so deserving, that they will risk losing all they have or can borrow, in the hope of getting what they dream of. And, it is all an illusion.
Is there really any such thing as luck? A few people may win while most others lose, but it isn't luck. It's probability. There is very little certainty in life; everything is a probability. So, there is always a possibility that just about anything could happen, no matter how unexpected. There is always a chance that the lottery ticket you buy will win millions. It is going to happen to someone. But, the odds of it happening to you are infinitesimal. The same is true of all gambling. The system is set up so that the owners make a huge profit, and those who participate in it lose their money.
Even when people should know that the odds are against them, they take that as a kind of challenge to their egos. They are going to beat the system. They feel lucky. They are going to take a chance. What have they got to lose? Actually, quite a lot. Their money, their marriage, their job, their savings, their life. It happens every day.
Gambling is an addiction, like alcohol, tobacco, drugs, pornography, and all the rest. It ruins people's lives. They spend everything they have, get more in debt, and will do just about anything to be able to gamble. The Internet makes it easy for people to lose all of their money. It is like a game, so unreal. There is no real money passing hands, no cash, nothing tangible — except the loss. Bank accounts are routinely emptied, and credit cards maxed out, to feed this addiction.
Often, people who do not have much money imagine that other people do, because of "luck." People do seem to get great rewards in life which they do not seem to merit; there appears to be no causative relationship. But, there is always something, some reason, some subtle or obvious cause, for the "luck" that people have.
Maybe you think that everything in life is a gamble; we are always risking something for the possibility of getting more. We risk our money, our health, our life energy, and gamble on getting more happiness, more love, more security. Sometimes we do, and sometimes we don't. But, informed decisions, managing risk, and doing what we feel is right, good, and true, is not really gambling.
Actual gambling — waging money to try to win more money — is generally a losing game. Some people win a lot, others lose a lot; some win now and lose later. It's that way with money, and that way with life. Sadly, the two are intertwined: it is very distressing, seeing thousands of senior citizens, bused into casinos daily, plugging away at slot machines and video poker machines like zombies, in the hope of striking it rich and making up for all of life's disappointments, or a life misspent.
People live for that one win which will make everything all right. And it doesn't happen; or if they win, they gamble it away in the hopes of getting more. If intent and focused energy made us rich, then the people working slot machines would be rich. But, the truth is, all the intent and all the energy in the world mean nothing, when you are focused on an illusion, a mirage.
Your efforts, intentions, and actions are only worthwhile when they are focused on something real. If you want more money, you have to begin by getting real and getting over your illusions, false expectations, self-deception, and ego-emotionally based behavior.
5. Creating Your Own Reality
There is a popular financial philosophy that says we create our own reality, and all we need to do to be millionaires is to adjust our "financial thermostat" upwards. Instead of having our "thermostat" set at a certain level, we can think of ourselves as being millionaires, and it will happen. A leading "expert" says it is as simple as taking our salary and adding another zero at the end — that resets our "financial thermostat."
This is more New Age nonsense. When this kind of philosophy is disseminated in all areas of society — regarding money, relationships, work, and even coaching — it is seldom identified as being "new age." It sneaks in under the radar, by promising everything anyone could ever want, telling them they can have it simply by believing it is so — and then throwing in the belief that they are "god," and the "universe" is there to serve their every need and desire. It is just waiting to give them everything they want, unlimited riches and power; all they have to do is believe it.
That is called believing — and living — a lie. It just does not happen in reality. There is the rare person who seems to get whatever they want, it just seems to come to them; but that has nothing whatsoever to do with their simply believing it into existence, not in this world. Yes, there is the rare person who miraculously recovers from some fatal disease, who survives a plane crash, who makes it out of poverty to become unbelievably rich. But, it is the very rare exception, not the rule.
New Agers are fond of saying that we are learning valuable lessons, and if we knew everything, we wouldn't learn anything. But, we do not truly learn by being deprived of knowledge, by being deprived of what we already know. Similarly, we do not really learn anything — including how to be "free" — by being deprived of freedom or resources. In many ways, life is designed to trap, exploit, or limit us, to keep us from knowing who we truly are and having what we truly need. And, that is the experience of at least ninety nine percent of the people on this Earth.
Telling people that the only reason they are in poverty is that they believe in poverty, and believe it is valuable, is very insulting. Making a person feel impotent because they cannot "believe" or "think" their way to riches, does not serve anyone. It is a way of trapping people in illusions; it does not free them in any real way.
Reality is the way it is, not the way you may think it is or believe it is. If you do not understand this most fundamental fact of life on planet Earth, you and your money will soon divorce. If you entertain financial illusions — no matter how big, how grand, how wonderfully captivating or seductive — you will only be moving further from financial reality.
People raised in our society are programmed to worship ego, and to believe they deserve everything they want just because they want it. Ego separates a person from deeper truths, and causes a person to live in delusions about their imagined superiority to everyone else. You would be amazed at all the people who believe they have won the game of life by having so much money that they can live in their own little world, catering to their huge egos. Are they free from the rat race, or have they just become a really big rat? Is nothing too good for them, or is nothing good enough for them?
Nothing you can buy with money, nothing you own, nothing you will ever have or own, will ever make you a better human being — or better than others. Nothing. You can have all the money in the world, and it will not make you any better as a human being.
And, no matter how good you are as a human being, you cannot insulate yourself from all that is wrong, destructive, or negating in this world. No matter how much money you have, you cannot guarantee that you will be free from the effects of disease, aging, death, violence, crime, abuse, exploitation, hunger, poverty, war, corruption, lies, suffering, or evil.
Living well while others suffer — living in a world of illusions, refusing to see reality for what it is, and rationalizing the suffering others experience as being their lot in life — is not some kind of marvelous achievement, or spiritual realization. Far from it. It only perpetuates the suffering of others.
6. Money and Spirituality
There is a popular theory that spiritual people, because they are not materialistic, are often poor. The idea is that money and spirituality do not mix. While it is often the case that people who pursue money as their main focus in living are often not very spiritual, and those who pursue spirituality as their main focus in life are often not very rich, the two do not need to be mutually exclusive.
It is possible to have a spiritual life and be financially independent. A spiritual person, however, would tend to not be very satisfied — or happy — holding on to a great deal of money or other forms of wealth, when there are others who have great needs and suffering in their lives.
What is the point of being worth a billion dollars, and having everything money can buy, when the wealth you are holding on to could be helping many others and it is not? There is a kind of immorality or lack of spirituality or conscience, in such behavior.
Money generally represents everything we can get outside of us, in the world. Spirituality is about everything we can — and need to — find within us. Having a lot of money does not make a person spiritual, within themselves; and being very spiritual does not make a person rich.
Being poor does not help a person to be spiritual either; that is just a myth. The vast majority of people on this planet are living in survival mode, barely getting by. What this does, is to keep people fixated upon the most physical or gross needs they have: food, water, shelter, and so on. People suffer in poverty, and in this way they often do not find the space in which to live a quiet, introspective, self-actualized, spiritual existence. They may have strong religious beliefs, usually in the form of beliefs about how God loves them even though they suffer in life. But, poor health care, infant mortality, poor sanitation, lack of clean drinking water, lack of food, lack of electricity, lack of education, and so on, take the place of spiritual realization of a higher Good.
There is a reason why the ruling elite in almost all countries tries to keep the masses poor, uneducated, and living in survival: then they do not have power, they do not have a life which allows them to question things, and they do not have the ability to change things. Money is wielded as a weapon by the haves, to keep the have nots in their place. And, if you have any true spiritual understanding about life, you can see that this is evil. It is very hard for the typical person on this planet to have any spiritual dignity in life, when they lack, food, water, shelter, clothing, education, employment, energy, or money. The lack of money keeps people in spiritual bondage, as surely as having a lot of money.
In our society, it is our attitude about money that matters, rather than the amount we have. Of course we need enough to take care of our basic needs in life; but to live a life of spiritual value and spiritual realization — to make a difference in our life — does not depend upon money. It depends upon what is in our heart.
Make believe, imagine, or consider the possibility that you can make a difference with your life. You can make a difference in the lives of others by simply caring and sharing. All it takes is compassion, and a willingness to do what you can, to help others who may be suffering. Picture how good it feels to help someone, especially those most in need. Even wealthy families find it of great value to have their children volunteer their time and energy with helping organizations, rather than giving them every material possession they ask for. This is how a person may learn the value of money, the value of what they have, and what other people experience in their lives.
Spirituality is about appreciation of what you have, what you can do, and, ultimately, who you truly are. Money — and the worldly identity that is formed around it — has very little to do with knowing who we truly are, inside. Often, it is only a means of misdirecting our attention, creating labels and misidentification about who we are, or causing us to overlook the spiritual riches we need to find within us, and share with others.
7. Doing What You Love
Another popular myth says we should simply do what we love, and money will come to us. It's a nice thought, and a nice illusion, but it just isn't realistic. People need to manage in the "real world," and no amount of self-satisfaction in doing whatever pleases us will make us rich.
Merely loving what you do is not sufficient to create wealth. It has to be something that actually makes money; you have to know what you are doing; you have to be good at it, and you need a way to promote what you do, or to reach customers or clients.
Some people are drawn to a professional career, as a doctor or lawyer for example, because of the high income potential. Others train in business and become executives. It is not uncommon for a highly paid professional to make a million dollars a year. The question is: are they all doing it for love, or for the money? Most often, it is the money, but there may be an element of doing what they love, too.
Most people who become rich do not care all that much about what they are doing, other than that it makes them a lot of money. They don't necessarily "believe" in the products they sell, or the service they provide, as much as they believe it will be financially rewarding. Let's face it, in business, there are countless millionaires who sell everything from hoses to homes, and they do not have an emotional investment in it. It's just money to them.
It is a myth that you need to be passionate about what you do, to get rich. It is more the case that you need to have a lot of energy and work hard. And, ultimately, it is necessary to be doing something that utilizes all of your talents and abilities. Love and passion are superfluous. Don't get all passionate about the wrong things, which greatly appeal to one's ego or lower nature, like making millions by creating a new vodka or a new tequila — you've never seen such passionate people, who love what they do, who believe in their product, and who act as if they are saving the world by giving people what they really need. It's a delusion; but in our backwards world, they do make millions.
People "love" what they do, when it provides them with some kind of ego-emotional gratification or excitement, or makes them rich. Realize, that is not real love. It is merely the emotional high that comes from the ego when it gets to feel superior, in control, or the "winner" in the game of life.
The truth is, there are better choices in life, than catering to all the alcoholics out there. You can find a place for what matters to you in your life, without trying to make money at it. Very often, they are different. That is not an excuse to spend your life working at various jobs that you find no meaning in, personally. It is important to find a way to express your values, purposes, and talents in whatever you do. And still find a way to do what you love.
Sure, lots of people would "love" to make hundreds of millions of dollars each year managing hedge funds — and the people who do, who buy lots of personal jet planes and every luxury that money can buy, "love" it. But, doing what you love can be so much simpler. Have you ever seen a craftsperson who makes something real with their hands, who puts part of themselves into what they do? In many ways, making something "real" is a lot more rewarding than manipulating data or information, and making money on paper.
What do the people who make a fortune do when they are free? Unless they are addicted to doing what they do for money, they invariably have other things in their lives that they enjoy. It's the simplest things that ultimately bring the greatest joy. A beautiful sunset. A smile from a loved one. A walk in Nature. It is insulting to the very thought of love — real love — to think of making money as "love." It is not.
Love has nothing whatsoever to do with money, anything money can buy, being wealthy, or making billions. That's not love; it's obsession.
Do what you enjoy, what matters to you, what makes a difference in your life and the lives of others. And, make money in a way that best expresses your values, who you are, and what matters. But, remember, these do not have to be the same. Deal with financial matters with financial sense, and make sure you earn enough to pay the bills, save something, invest, and prepare for your future.
8. Get Rich Quick
There are many get-rich-quick schemes, and they appeal to those who don't want to put in the time, energy, or hard work to create or build wealth. Basically, anything that seems too good to be true, is. Run from those schemes, or you will soon be separated from your money.
One popular business, which often does make the originators wealthy, is network marketing, also known as multi-level marketing. Basically, those who enroll many other people as salespeople — who then enroll many others, in a pyramid structure — profit from the profits of all of those beneath them. Everyone sells whatever products they invest in to their own down chain. And the pretense is that anyone can get in, at any time, and get rich by merely enrolling many people beneath them, and having them enroll people, ad infinitum. The originators, at the top of the pyramid get very rich, some others do well, and the vast majority of the pyramid does not make much of anything, or loses their investment. This illusory path to wealth is often sold in mass meetings, with enormous hype, pumping up of ego and emotion, and entertainment, playing to desire, greed, and unlimited ambition. The specific products being sold are irrelevant.
Such schemes appeal especially to New Agers, who believe they are so deserving of having money, that it will just flow to them. They are prone to living in their illusions, and think that the only way to get rich is quick; hard work or "effort" is contrary to their belief that the universe exists to cater to their every wish, at their beck and call. And, if it isn't happening quick, they interpret that as they should obviously be doing something else which provides a promise of immediate gratification.
People want what they want, now. But, in order to build wealth, you need to postpone your gratification. You need to put in a great deal of time, energy, and other resources, build assets — first — and then, when you are financially well off, you can begin to use some of your excess income to get what you want. You have to create a solid foundation for wealth, first, and it takes time.
Time works for you, not against you, in wealth building. Income accrues from assets that generate income, as well as interest on the investment income, assets, and the business or service you provide. All of that builds over time. And it necessarily takes time.
When the economy is "good," it seems to be easy to make money. Everyone is making money in the stock market, in real estate, and so on. But, the economy changes, and goes in cycles. This leads to schemes to make a lot of money when money is "loose," when it is "cheap" and readily available. Some people do make a lot of money in the rapid upward swings of the economy.
Still, the goal should be to have money for as long as you need it in your life, which philosophy demands that you learn how to take care of your money in good and bad times. Chasing a quick dollar does not necessarily lead to long-term financial security or a long-term investment strategy.
Stay away from get rich quick schemes. Remember, if it sounds too good to be true, it probably is.
Money doesn't necessarily attract money, or make money. Of course, there are deals that may come to your attention simply because you have the money to participate (or others think you do). Investments are a way in which money is loaned to others, and you share in some of their profits. Even when you have a savings account at a bank, the bank is loaning out your money (many times your money), and investing it, and making enough to grow and pay you a dividend. Investments of any kind usually mean other people are getting your money, and there is always a risk in that. It is not a law of physics or mathematics that money automatically multiplies; whatever you do to make money has a risk of losing money.
The risk may be great or small; effective money management means minimizing the risk, and maximizing the reward. You'd be amazed at all the people who maximize the risk and minimize their reward, in the hope of "striking it rich."
These days, it is very important to watch out for Internet scams, with people (including those in other countries) creating ever more cunning ways to cheat you out of your money or drain your bank account. Often, they will promise you a quick profit for merely receiving or depositing some money; you mistakenly trust them, deposit the funds, are told by your bank that the check has cleared, and then find out a week later that the check really was no good — and you are liable for the full amount. Americans are defrauded of more than a billion dollars each year just on that one scam alone, using phoney checks and money orders. They are seduced by their own desire to get rich quick, or by their greed.
9. Being Cheap
Contrary to the popular myth, no one gets rich being cheap. There are cases where it can happen, but it isn't being cheap or wearing used clothing that brings wealth into our lives; it is almost always a matter of investing wisely.
A constant mindset of looking for the cheapest everything, or looking for everything second-hand, is as out of balance as is that of always wanting to go first-class. There is a middle ground, which better honors who we are, and what we really want to experience in our lives.
We are spiritual beings, with creative ability, a mind that can conceive of new ideas, and an ability to create and build wealth. We are not meant for suffering; and, being cheap or miserly is a way of denying our spiritual heritage or worth. Of course, we are not going to extremes here, like the New Agers, declaring we are "god," and can have everything we want, or saying that the universe will just give us everything we want because we want it, or that we should always go first class because we deserve it.
We are simply, honestly, acknowledging who we are, not being egotistical and not having false humility.
You may find, if you always buy the cheapest of anything, that it does not really serve your needs. Manufacturers know that people who shop for the cheapest item are willing to give up a lot of quality, and the cheapest items seldom last as long or provide as good service as those that cost just a little bit more.
There are some things that need to be avoided at all costs if you wish to experience a quality of prosperity and well-being, and the first one is used clothing. Clothing is not just cloth; it contains the subtle energies (and even the biological products) of its previous user. There are some things that do not leave an article of clothing when it is simply sold to another person. And, in many ways, the energy of used personal items is a great liability — something that can drain, pollute, and undermine you — rather than some kind of gift. Anyone else's energy is foreign energy, and it does not have a positive influence upon you, especially if they were troubled or sick (or even died).
Be very aware of how you feel about things you buy, and that includes everything from an article of clothing to a vehicle to a house. Everything has its own energy, its own history, its own subtle causes and effects. These remain with the article even when the previous owner is no longer there. And, not all of these effects are good; many are quite negative. You can feel it, in certain houses, or certain rooms. It isn't just your imagination, it is a subtle awareness of the nature and possible effects of being there.
Things that are cheap are usually cheap for a reason, including used cars. Many are horrible wrecks that are made cosmetically pleasing to the eye, but carry a lot of bad history and energy. Most vehicles that are sold at curbside fall into this category, no matter how much the person selling the vehicle claims that it is a well-cared-for vehicle. Buyers get scammed this way every day, and they have no recourse.
In many ways, you get what you pay for. That doesn't mean if you overpay for something, you will get even greater value from it. Rather, if you pay a fair price for something that has real quality or value, then you come a lot closer to getting your money's worth. Realize, more expensive purchases may cost you less in the long term; you can get a vehicle for slightly more money that will keep much more of its value for a much longer period of time, so that you get more money back when you sell it. And, you can get one that has a lower cost of ownership, which has a history or reliability, and which will likely require less repair over the years.
Another way in which going cheap doesn't necessarily help your financial situation is in the purchase of a mobile home, or manufactured home. In many cases, these actually lose their value over the years, while a built home grows in value.
If you wish to buy a home, and cannot afford much, then consider a cheaper house in an area where most of the other homes cost more. Over time, you can make improvements as you see fit, especially those which will pay for themselves many times over when you sell the home. This can allow a much more comfortable lifestyle and living situation than buying a more expensive home, and having to watch every penny you spend. These are just some suggestions. If you use your head, and do your research, you will find many ways in which to spend wisely, rather than merely cheaply.
10. Affordability
Perhaps the greatest financial myth in our society relates to affordability. We are trained from an early age to evaluate everything we want in terms of whether we can afford it or not. As children, we may be given allowances, and have to carefully evaluate what we can afford to buy with our money. And, we never really learn that it isn't what we can afford that matters, or what we want, it's what we need.
Maybe some children learn that they have to spend within their means, but most of the time children learn to spend whatever they are given; they maximize their spending, and make sure they spend it all. This is their lesson in "affordability."
Of course, it is a far more valuable lesson to learn to spend money on what we need, rather than what we want — even if we can "afford" it. The truth is, we cannot afford to spend all our money, or spend on what we want — even if it is within our budget — without learning to save and invest our money. That's a recipe for financial disaster in life, not ultimate financial responsibility.
For many years, even the poorest people in the inner cities have bought the most expensive name-brand sneakers and other clothing for their children of all ages. They feel they need the expensive label, in order to buy social acceptance for their children among their peers. It is incredible that people who have little money for life's necessities choose to spend money on such things, but the thinking is invariably that they can afford it — or they can't afford not to buy these things. They don't want the stigma of appearing to not be rich, so their children are not viewed as coming from low-income families. The irony is, all of the the kids in the inner city schools — all of their peers — come from the same low-income environment. And they all are trying to impress each other with how rich they are, and how they can buy whatever they want. And it is all a big illusion.
In middle-class America, for a long time there was a phenomenon of "keeping up with the Joneses." People with single-family homes would see what the neighbors bought, and go and buy the same thing, just so they wouldn't be seen as not keeping up. It was like competitive shopping. And, as hard as it may be to believe, this really mattered to people. They judged how well they were doing in life by the extent to which they were seen as being able to afford — and buy — what their neighbors had.
In our society, when people buy a big-ticket item, such as a car or a house, they almost invariably seek the most expensive one they can afford. They will spend the last penny they have each month, to make the payments, just so that they do not buy anything less than what they can "afford."
This behavior carries the illusion of fiscal responsibility. People imagine that as long as they spend everything they have, then they are not only entitled to buy what they want, but they are being intelligent in their spending. Nothing could be further from the truth. Spending all that we earn on whatever we want — with the excuse that we can afford it — is the road to ruin. It does absolutely nothing to ensure our financial future, and is merely the behavior of a thoroughly programmed consumer, and is ultimately neither wise nor responsible.
Even rich people do this. They, perhaps even more than others, feel they deserve it. They may think nothing of spending nine thousand dollars for lunch with a friend at some posh restaurant. The act of spending a lot more than people with less money, is a way of proving their "worth" to themselves. They get to feel superior; the more they spend, the more distance they put between themselves and those of lesser means. It is not all that different from kids in the inner city wearing new hundred and fifty dollar sneakers.
People's egos give them the illusion that spending money on something proves that they can afford it, that they deserve it, that they really need it, or that it somehow makes them better than those who do not have it. But, it is often little more than an illusion. And a very self-destructive one at that.
If you want to get ahead financially, have a secure financial future, or learn what real financial freedom is, you have to spend less than you can afford, save the difference, and learn to invest it.