We will now focus on the third part of the time, talent, treasure trilogy: treasure. Money can be a source of tremendous stress, especially when we never seem to have enough of it. The more we make, the more we want. Many people don’t understand the power of money and fall victim to over-indulgence and over-consumption. We live in a consumer society and Americans are the worst at saving disposable income, retaining only around 5%. In contrast, Japan applies a more disciplined approach to consumption and leads the world with disposable income savings of up to 20%.
I have always had a keen interest in money and gravitated toward the things it could offer me (even at a young age), like financial freedom. I remember hearing my parents stressing about bills and the difficulties of money, or lack thereof. My mother was a stay-at-home mom, doing things from home as an Avon lady. My father was a blue-collar worker; he spent time in the Marine Corps, then worked as a butcher. With six kids at home, we always had a roof over our heads and food on the table, but we didn’t have a lot and never had excess. While I didn’t really understand the difference between what we did and did not have, the one thing that struck me was the uncertainty in my parents’ voices whenever they talked about money.
Money always seemed to be a challenge and a source of worry for my parents, and I decided then that I did not want that for me. That very well may have been my motivation to understand the concept of money – how to grow it and always have it around me. Since I was young, I have always held a job. From delivering newspapers to selling cards door-to-door to collecting pop bottles at age four, I have always been in business for myself. I have always had an appreciation of money and what it can do for me.
I have made my fair share of mistakes along the way, but I do understand the treasure part of our lives. I know the money we make can be a point of stress for many people. When I teach my courses, I discuss the different types of financial people and which category we all fit into: conservatives, risk-takers, savers, consumers who consume more than they make, those who use credit, those who want to get out of debt or be debt-free, etc.
It is important to understand these different types of financial people and which one we identify with so we can understand our relationship with money, take control of our lives, and live a life of fulfillment. Sometimes our lack of control can result in a scarcity of money where we are living paycheck to paycheck or don’t even have enough money to live that way.
Many suffer from a consumer mentality that convinces us our needs must be fulfilled immediately, causing us to live beyond our means. Financial institutions seem to encourage this type of behavior offering newly graduated high school students credit cards, introducing them to buying things on credit and the pitfalls of debt. If you took inventory of everything you spend money on during any given week, I could show you how to put more money in your pocket without increasing your paycheck or finding a new source of money. You could find money within your current activities.
The problem is a lack of planning. Most people don’t track what they spend, buying things they need here and there with no tracking or limit. Tracking your expenses allows you to see where and what changes can be made, actually freeing up income to put toward something that will be of benefit down the road.
I started an IRA at age 18 because I understood the value of saving money. When you start to understand the value of money, compounding interest, time and its relation to saving money, your life will change. The sooner you learn concepts about money, the quicker you can achieve your financial goals. You must set goals to work toward to be able to track your progress and accomplishments. No matter your age, position or status, you must have a goal. Sit down and write down financial goals for one year, five years, 10 years, 20 years, etc. If you are intentional about your goals and are willing to work toward them, you will absolutely get there. In contrast, doing little things here and there without any solid planning or goals, except for a hope that it all plays out well, will not achieve the same outcome.
Understanding money and the power of your decisions concerning it affords you more control instead of allowing external forces to control you. Money can be your friend and can even work for you, but the pursuit of money can also destroy you. Understanding how money works allows you to be in control. Budgeting and understanding your needs versus your wants will help you allocate your resources appropriately.
In my courses, I can teach you how to make a lot of money, but if you are not a good steward of the money you have now, do you think having more money will solve your problems? No! You’ll be doing exactly what you’re doing now, just with more money, more spending, more debt, with increased liability and a greater chance of everything crashing down if things go wrong. It’s important to learn as you earn and put yourself into a good position to succeed financially.
It’s never too late to learn, especially when you can leave this legacy of learning and understanding with others. Leaving a legacy of hard work and the importance of working for what you have is much more valuable than leaving a big inheritance. Most family businesses that are passed down to their children fail within two years because those children did not create the business – it was given to them, not earned.
What are you doing with your treasure? How are you using it to your advantage? There is a saying: “A fool can earn money; but it takes a wise man to save and dispose of it to his own advantage.” Invest time, use your talents, and learn how to increase your treasure, then hold on to it. At the end of the day, it’s not how much money you make, but how much you keep.
Save enough money to take care of emergencies or unexpected circumstances. Manage your money in a way that it doesn’t negatively affect your relationships, especially since money can be a huge source of conflict for people. Learning to use money as part of your relationship is valuable. Take time to learn and increase your financial education. Become self-reliant. Remember, success in never an accident!
