What am I missing ke?
Warning: This is a very dry and judgmental article so bear with me. Certainly not my favorite to write but someone has to. Please read to the end and give feedback at the end. The only way I’ll improve this side of finance.
So the trick, what is it??
It’s a test of will like you’ve never had. It plays on your ability to sit on your hands throughout 2 or so lifetimes. Most often our allure to money is what we’d like to buy with the money more than just accumulating the money itself. Think about it. Our celebrities elicit our envy because of what they make look good more than how much money they have in the bank. Think about how many celebrity bank statements or actual portfolios you’ve seen and you’re onto my thinking. We think they have a lot of money because they look like they do (and get the latest things so surely) yet we actually can’t prove it. Logically it makes sense that they should.
Now contrast this with every guy you bump into in the mall. If you’ve met a few asset managers or retired retail investors you can attest to the fact that there isn’t anything too flashy about them. A lot of their wealth sits hard at work and doesn’t get the opportunity to “come out and play with other kids.” And they do share their portfolio value, or shares they hold and when they bought them. So we can calculate how much they have at any given point. (Despite the fact that they tell us every time they make a profit.)
Notice a thread here. You can’t have money in two places, and if you do any groceries you’ll know this best. If the money is in your bank account, it can’t be in your fridge. And if the money is in your fridge it can’t be in your bank account. So the “thing” that most people miss is that wealth accumulation is largely about not what others see but what you see on your own. It’s about the accumulating bank/portfolio balance. The moment you spend it it’s not money anymore, it’s things.
So is it worth it then?
I normally say that’s a personal choice. But if I may take this one opportunity. Considering you or I don’t know how long we’re going to live, nor how stable the future is I believe it definitely is. Consider the more you make the closer you are from living off your interest. If you’re getting higher utility for your money now it definitely won’t be there in future if you need it. However the more you let it accumulate now the more likely it’ll be there and bigger in future.
Is money everything? Well next to oxygen, yes. Money for money’s sake IS the world we find ourselves in. Everything that requires your money will definitely make a case for “things” being what makes life worth living. Most probably. You can see our personal finance feature for that. In your investment portfolio the sole purpose of money is to make more money. Don’t ever get that twisted.
In conclusion, money gives you the freedom and peace of mind to do most things. But certainly does not solve your problems. Relationship problems are solved by seeing a relationship expert or reading a book. Work problems by upping your skills, speaking to your boss, getting a raise or simply solving the work problem. Money often gives space and clarity but often isn’t the solution. The more you learn to solve your problems without money being the placeholder the greater opportunity it has to grow. You want your money growing uninterrupted.
And if your money is growing the more confident you will be to face anything that comes in future. The hard thing about making more money is leaving it to grow.
See this article http://www.collaborativefund.com/blog/the-psychology-of-money/