The principles of money

1. Money Needs Direction

Money is a tool.  It will only do what you tell it to do.  As it’s manager, it is your role to direct its course.  Assign your dollars the important job of solving money problems.   For example, you can direct your money to help you retire whenever you are ready by investing in your retirement account.  Assign your money the task of helping your child buy their first house.  Need some time to help your aging parents? Appoint your funds to build a sabbatical account.  If you do not set your dollars down an honorable path, they will wander and end up off course (for me that is Target).

2. Money Needs to Know It’s Value

Money can buy a lot of things but it can’t buy everything.  The most valuable things in life cannot be bought.  That includes time, health, and love.  Your dollars should focus on things that are truly priceless. Mona Simpson, Steve Jobs’ sister, in his eulogy states, his last words were “OH WOW. OH WOW. OH WOW.”  What was Jobs’ looking at according to his sister?  Not the iPhone nor the Mac.  He was looking at his sister Patty, his children, and his wife, then over their shoulders.  This is a wonderful reminder that material possessions or wealth have no value at the end of your life.  It is the love of those closest to you that make you fulfilled.  

3. Money Needs to Mature

Like children, your money needs to grow up. Your capital should be growing and getting bigger as it ages.  It should be invested in income bearing assets such as a sustainable business, the stock market or real estate.  Directing your money in good investments will multiply your dollars over time.  Gambling in risky investments such as penny stocks, lottery pools and forex trading will decrease your net worth slowly over time. Educate yourself on where your money can safely mature and direct your funds there.

4. Money Needs to Be Selfless

Once your money has matured and it is producing more than you need, your wealth should be consistently giving itself away to something greater.  This can be causes that solve world problems like hunger and homelessness.  Get creative! Cash can also help a struggling filmmaker produce their first film.  It can help a family member who has fallen on hard times.  You must become selfless to have your money act selflessly.  Take some time to identify three causes that you are passionate about.  Find ways you can give to make an impact in their mission

Money is brainless, it will do whatever you tell it to do.  It is your job to manage how your money is spent.  If not, your wealth will gravitate towards things and people that have no value.  As humans, we don’t have a lot of control in how most things play out in our lives.  In the case of money, you have a choice.