The principles of money

If I can be transparent, this is something that I struggle with.  I believe the core root problem of hoarding money is fear.  This is true for billionaires and hundredaires.  The top 1% are hoarding wealth out of fear of losing power.  Others are hoarding money out of fear of poverty.  I know someone who grew up extremely poor.  Their entire life has been a showcase of nice things.  They have a large sum of money in the bank because they never want to experience poverty again.  Over the years, I’ve watched them trade their relationships for work hours to earn more money.  As a result, they are financially secure but live a lonely life.  So, how do you balance the ambition for more money with contentment?  Here’s what I have learned from my journey

Hoarding is a False Sense of Security

No matter how much money you have, it can be taken away.  That is a sobering fact, and it is the truth.  Seán Quinn was once the richest man in Ireland.   It was reported by Forbes that his net worth was around $6 Billion.  In 2008, during the Great Financial Crisis, Quinn’s 28% stake in Anglo Irish Bank went to zero after the bank went bankrupt.  Quinn Insurance, which he owned, saw sizable losses from speculative property investments.  In one year, he saw majority of his fortune dwindle.  After the government and banks seized and sold his assets, he was declared bankrupt in 2012.  Whether you have $40,000 or $4,000,000,000 be wise to know that it won’t save you from misfortune.  It can happen at any time, to anyone.

It’s a Slippery Slope

The unbridled desire to have more money can lead to sinful behavior.  If the need for more money is the focus of your life, you will do anything to get it.  What do the people on this list have in common:

1. Bernie Madoff
2. Elizabeth Holmes
3. Vijay Mallya
4. Eike Batista 
5. Allen Stanford

All these individuals reached billionaire status owning legitimate (even if just for a short time) businesses.  These individuals have also found themselves in jail for criminal behavior.  For more money, they were willing to become unlawful and immoral.  Most fascinating people on this list are the ones who were already (by birth or business) wealthy.  It almost seems like their crimes were unnecessary.  However, the bible states that the love of money is the root of all evil.  Each one of them defrauded businesses and families out of billions of dollars.  For what reason? Because they never defined how much was enough.

By Force Or By Choice

There is an American saying that states “You never see a U-Haul behind a Hearse”.  Meaning, whatever you accumulate on earth, can’t go with you when you die.  You will leave it behind by force or by choice.  Will the people that you choose to inherit your money be grateful for what you worked for?  If you sacrificed them for it, your legacy is wasted.  If you never made time to designate where your money is supposed to go, you force a judge to decide.  Hoarding wealth without vision will keep you working until exhaustion.  Life is to be lived.  Bill Perkins wrote a great book called “Die with Zero”. It challenges all of us to live in the present because the future is not promised. Bill promotes using your money to do some of those bucket list items now. All while balancing preparing for an unknown future. 

How to Combat Hoarding Money

1. Be content with what you have.  If you can pay your bills and save with money left over, you are blessed.  It may not feel like it, but you have enough.
2. Have a hard stop number.  Create a dollar amount before you start saving and investing that will take care of you for life.  Once you reach that number, become the most charitable person you know.  We have read about what happens to those who have unchecked ambition.
3. Money is a tool, not magic.  Money can’t buy happiness, self-esteem, or purpose.  That comes from within.  Money can buy a good therapist to help you work through your issues.
4. Be counter cultural.  Live a generous life willing to share with your community.  Nothing combats greed like generosity.  Find a cause or organization that you are passionate about and give your excess away.
5. Be accountable.  Are there people in your life who you share your goals with?  We need people to course correct us when we stray too far off the path.  Find trustworthy people in your community whether it be a friend, small group or financial advisor who will discourage your hoarding tendencies. Looking for community? Start here.

Learn to Live in the Middle

Whether you have $1 or $1 billion hoarding is a real problem.  This is something that I am currently walking through.  As a parent with a special needs child, his future terrifies me.  I found myself accumulating money for his future in a cloud of fear.  The truth is, I don’t know his future.  He could make more money than me.  I could be living with him!  I have focused on using some of that money on services and therapy now.  While creating an inheritance for later.  Life, like money is all about balance.  Learn to live in the middle.