There Is a popular belief I often hear from people and it's the belief that money is not all that important or that money is the root of all evil.
What kind of people champion this belief?
Generally you will hear this from people that don't have a lot of money or happen to make a lot of money, but mismanage their finances and end up with a minimal or even negative net worth. I believe people who express this belief want to justify their lack of money, poor financial decision making or lack of ambition to increase their earnings. You almost never hear people with a lot of money make this claim that money is the root of all evil.
Positive and Negative Greed:
Another reason why people express this belief is because they are operating from the point of view that having a desire to build wealth is related to negative greed where you hurt other people in the process.
Yes, there have been a fair share of evil people that lie, steal and cheat their way to wealth, but I will ensure you that this is the minority. The majority of wealthy people operate from a sense of positive greed, to do better for themselves and their family.
While building their wealth they are enhancing the economy by providing value through goods and services and are investing a portion of their earnings back into the economic infrastructure to provide capital to other businesses. This positive greed is essential for our world to operateand it is why capital markets are absolutely essential to sustain this infrastructure.
What are the benefits to having money?
Having wealth does not make you happy, it just helps you become happy. The reason it helps you become happy is because you now have peace of mind. You do not have to worry about borrowing from others, asking for favors, depending on others. You have reduced stress about becoming sick or being severely injured because you know that you can afford the best health care in the world.
You now have options. You can go to work because you want to and because you love your job, not just for a pay check to sustain your lifestyle. Your lifestyle becomes much more comfortable and everything is just easier if you can manage your finances correctly. It is in your best interest to design your life the way you want and help others along the way now that you built wealth.
What you should not use money for:
The wrong mindset to have is to try to gain wealth in order to be ostentatious and be a show off by buying useless and depreciating crap. Yes, having that nice luxury car, designer clothes and rolex would be nice, but it should not be your primary reason for building wealth.
These are just nice to have things and having them will not create lasting happiness... the feeling is fleeting. What you need to aim for is having money to reduce stress, create peace of mind and allow yourself the freedom to live life how you want.
I encourage you to reflect and be completely honest with yourself about your attitude towards money. Determine what is most important to you, create a plan on how to reach your goals and act on it. Life will become 10x easier if you have your financial situation straight and focusing on the more important aspects of life such as health, family, hobbies, socializing and career become much easier.