How many times have we heard things like the following statements?
- Money is the root of all evil.
- If you’ve got your health you’ve got it all.
- It’s always the same thing. The rich get richer.
- Money ruins friendships and relationships.
The attiudes mentioned above are frequently reinforced in the news, in the media, in movies and on social media. But are they realistic perceptions of money’s place in our lives? For as long as I can remember it’s been cool to deemphasize financial wealth as a wonderful thing. At least among the people I’ve been around. Sure, I’ve known people who seemed very comfortable flaunting their wealth but those people have represented the exception to the rule. Almost everyone I know, even those who I know are very well off financially, downplay the importance of the wealth they have in their lives.
The quote that follows is one that I’ve listened to many times in one of my favorite films, The Godfather Part II. The context is the main character of the film Michael Corelone (played by Al Pacino) is speaking to a man who wants to marry Michael’s niece (the daughter of his brother who died) and the man speaks sheepishly about his family’s wealth. Michael responds to that by saying the following.
You shouldn’t be embarrassed by your wealth. This contempt for money is just another trick of the rich to keep the poor without it.
The reality that I’ve learned after several decades as an adult is that financial wealth does two things for a person or a family. First, it offers you options in your life that you might otherwise not have. Second, it amplifies whatever the current situation is in your life. In the next paragraphs I shall explain this a bit more.
With regard to options in your life, extra financial resources allow you to make decisions based on what you think is best for you instead of what you just have to live with to get by. In truth there are times when this is a big deal and there are times when it isn’t. For example, I don’t see the difference of being able to afford the top cut of meat in the grocery butcher section as that much different from being able to afford the average cut of meat. Apply that to whatever things you usually buy at the store. Now there is a big difference if we’re talking about not being able to afford food for your family versus being able to at least provide the basics. Which highlights another important fact about money that we rarely think about. Wealth is relative depending on a person’s situation. If you have nothing in the bank getting a hundred dollar check feels great whereas if you have a thousand dollars in the bank a hundred dollar check is good, but perhaps not the same feeling as when you had nothing.
Extending the above example, wealth can also make the difference in being able to afford a nicer place to live and in that sense the optionality can make a difference. Accumulating a certain level of wealth allows people to live in places with more space that are more modern, more secure and perhaps include nicer amentities such as a gym or a pool. Being able to have a choice in things that impact your daily quality of life is an empowering feeling. Similarly having extra wealth can mean the difference between driving a car that’s on its last legs mechanically and one that is comfortable and drives well. Once again, having extra financial resources gives you the option to take action to improve your daily life. I think you’d be hard pressed to find someone who doesn’t think that having such options is a good thing.
As I mentioned above the second things that financial wealth does is amplify whatever the current situation is in your life. So if someone is generally an angry and negative person they will probably be more of that as they gain financial wealth. I remember seeing a film about a guy who was really big in the time share industry. On the one hand he was selling like crazy and raking in millions. He had a much younger wife, a few kids and lived in a huge mansion. And the guy was grumpy and busy all the time. The wealthier he got, the crankier he got and the more he worried about his business. Did the money do it to him or was he just a cranky guy addicted to work? I think it was the latter. What happens though is that people see (or experience) situations like that and point the finger at the financial wealth as the problem. I don’t think it is.
Another example of amplification involves when people use money to fill a hole in their psyche. It could involve overeating, drinking too much or fueling a sex or drug addiction. Sometimes several of these things come into play at once. Ironically people who have lesser financial resources fall into these same traps. It’s just that people who have more money have more rope to hang themselves with since they can afford more of everything. So we must ask ourselves this. Is it really the fault of money that some people choose to use it to overindulge in their lives?
When I think about the examples that I offered above it reinforces my belief that money has long been a scapegoat for a myriad of problems that people don’t want to do the work to solve in their lives. Some will probably think, “Sure but greed does exist and it drives people to do really bad things.” That’s very true. Greed looks different to different people though. Some think that any person who wants more than they absolutely need right now is greedy. On the other hand you have people who have earned more money than they could ever spend and still they work for more. Many consider that greed as well. I think what people really mean when they target money as encouraging greed relates to people who steal, engage in violence and act dishonestly in order to enrich themselves. But is it money that’s to blame in these situations or some grievous character flaw?
Our attitudes towards money are critical when it comes to our ability over the long term to earn income and grow our wealth. I can agree with the naysayers who declare that money is not everything. Then again, it’s not nothing either!
I’ve been rich and I’ve been poor. Rich is better. Totally better.
David Lee Roth
In The Midst Of A Journey 