The importance of money cannot be denied. It enables us to attain the needs, wants, and luxuries of life. But with the current condition of our economies and depictions of the human psyche in the news, I see evidence that sometimes it just goes too far. There are people sitting on billions of dollars and others who cannot guarantee the next meal for their family. But, this post is not some social message about solving the world’s problems. I don’t want to tell you that thinking about money is shallow or greedy. It is the reality that we need money to survive and having more makes one better off materially.
The goal isn’t more money. The goal is living life on your terms. – Chris Brogan
I want to propose that, as individuals, each of us needs to build a healthy relationship with money and recognize it as the means to an end and not the end in itself. Personally, I want to have a sustainable, not-so-extravagant lifestyle, and I do not want to spend day and night just building my bank balance, stock up on material possessions, or desperately wait for two weeks of vacation.
Whatever you do to earn money, do it with integrity and try to enjoy it too. When spending it, make it work for you and seek to add value and happiness to your life consciously. This is not easy when media is constantly pushing ideas on you about all the things you cannot live without.
The essential components of any sound financial plan are:
- realizing and tapping into your full earning potential (ethically, of course)
- understand and differentiate between needs, wants, and influences
- financial tools and rules that are growing your money or eating into it
- strategies for effective saving and investment
- using your money to get the best value and satisfaction
As a student of finance and life, I am going to share the ideas I have worked with and continue to build on. If you have any questions or advice for managing money, please share below.