This article is part of the money myths series. In each article, we explore one money myth and how this money myth may be keeping you from more money.
This article discusses the money myth that money isn’t important. Here are the other articles in the series:
- Money Myths: Are You a Slave to Money?
- Money Myths: You Don’t Need Money to Be Happy
- Money Myth: The Rich Stole Their Riches.
- Money Myths: Money Tore My Family Apart
- Money Myths: All Debt Is Bad
Introduction: Money Is Important
The most obvious indication that money is important is what you do every day, from 8 to 5: You go to work. You join the legions of other people in the fast-moving caravan of a metal jungle called a commute, slabbing it to work. You do this for the next 20 to 40 years.
If money isn’t important, then why are you doing this?
Well, that’s pretty obvious: I have to work to make a living and support my family!
Yet, something like 75% of all people feel disengaged from their jobs. This doesn’t necessarily mean they hate their jobs, just that they aren’t in the present moment. When they are not in the present moment, they are not working efficiently.
It’s easy to see why money isn’t important when people in essence do not enjoy what they are doing and are only working it to support their families.
The Harms of Thinking Money Isn’t Important
There are several effects to thinking thinking money isn’t important. In no particular order, they are the following:
- If you don’t think money is important, then you will push it away as soon as some enters your life.
- You will not take your job seriously and provide the most value you can.
- Because you’re not providing the most value you can, you will not be in the mindset of constantly improving yourself.
- You will not see any want or desire to start your own business.
Not a Fair Trade
Do you know what “job” stands for? It means “just over broke.”
I’m not a fan of trading dollars for hours. Yet that’s what most people do. The way they do it is through a job. As you slowly work your way towards money freedom, you realize there are better ways to make money, such as investing in stocks, real estate, and businesses. Better yet, start your own business.
So invest in and work on constantly improving yourself. You’ve heard of the saying that you have to provide value in order to get value. It’s really true. Most people have their internal radio antennas tuned to the station WII-FM: What’s in it for me?
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Think of the times when you provided more value to other people without the expectation of anything in return. What happened when you needed a favor in return? They likely jumped over hurdles to help you. That’s what it means to provide more value to other people than they expect. But don’t do it with the selfish reason of expecting anything in return. Most people can sense this insincerity.
Gamify Money
Money used to be backed up by gold. At one point, you could literally take money into a bank and trade it for some gold.
In 1975, President Nixon effectively decoupled money from gold. Put it another way, money is no longer based on the gold standard.
This isn’t all bad. In fact, in many ways it’s good. That means suddenly the supply of money in the world isn’t limited to how much gold there is. Economies can grow much more, benefiting people in the process.
For you to become wealthy no longer means thousands of other people must live in poverty. Because hey…there was only so much money to go around.
But this goes to show you money is just an idea. It no longer has extrinsic value. The intrinsic value is there only because our government backs these pieces of paper with funny pictures and numbers printed on them.
Basically, the money you work hard to save and to build a retirement could vaporize in a heartbeat because of inflation, economic, or political instability. Thirty or forty years is a long time to spend in the workforce, planning for a day that could or could not be waiting for you.
Because of this, I treat money like a game. The amount of money I have is like earning points in a game. So, the more points I have the better I am doing. In other words, money is just an indicator of success.
A Final Spin
In the end, money isn’t important. It really isn’t. What’s more important is how you live your life. Strive to constantly improve yourself, learn new skills, and provide value to other people.
When you can help other people solve their problems, they’ll reward you. You’ll get more “points”. The more points (money) you get, the better you are doing.
Be careful that you don’t get so hung up with saving and investing every dollar for retirement that you’re not enjoying life now. You could be so focused that you end up making everyone around you and yourself miserable.
While money is certainly important at the beginning, so is your ability to let it go when it has the ability to help you. Money, after all, amplifies the qualities already inherent in you. I was so focused saving and investing that I struggled for over a year to let go of my money energy barriers. I was having troubles spending $20 here or there, even if the having of that thing made my life better many times over.
I eventually discovered that having a “Fun Fund” really helped me to feel better about spending money. You can do the same. Set aside a budget of 10% of your after-tax income. The goal of this Fun Fund is simple: You have to spent all of it every month. That’s it. What goes in must go out. Money flows. It’s always in circulation. That’s how value is provided and how it keeps moving.
It’s up to you what you categorize as fun. For example, eating out could be fun. Taking a trip out of town could be fun. Rewarding yourself with a massage could be fun.
You can be so hung up with saving money that you develop the habit of not wanting to spend money. Overtime, it becomes very hard to let go and spend money. Imagine yourself 30 or 40 years in the future, now in retirement. You have a lot of money saved up, but because you never learned how to let go and spend it, you end up having a miserable retirement.
Prioritize
Decide that money is important. Then, actively work towards creating more money. Save and invest. Be consistent. Success is repeatable but very boring. This is the only way if you want money freedom.
Once you decide something is important, then you’ll dedicate more energy and focus. You’ll spend your waking hours studying and implementing what you studied to create more money. Remember what Earl Nightingale said: We become what we think. If you want money freedom, then think about how to create and manage your money. It really doesn’t happen by accident.