Everyone craves money, but few understand its value, nor how it should be used to create wealth and happiness. Most people translate a dollar as the standard of wealth. The more dollars they have, the richer they are. But this is faulty thinking. Many have died in poverty with mattresses stuffed with paper dollars and bank accounts loaded with cash.
The sole use of money doesn't lie exclusively on what it buys. The acquisition of material wealth eventually deteriorates over time. Cars, furniture, appliances wear out, eventually to be thrown away. The latest video game, iPod and cell phones last only as long as a newer, faster model comes out. The only purpose of the money spent for these things goes totally for their usage. The items purchased don't produce more wealth.
Of course everyone needs a place to live, food and clothing. And the purchase of these items serve a major purpose. In this case money serves to supply a required need, even though what is purchased still deteriorates over time. But everyone has the choice of living comfortably in a small home or a large home with all the amenities with a mortgage and loans to pay for.
Those that use money wisely are among the richest of society. They understand the difference between money and wealth and follow different standards that may guarantee wealth and happiness.
Money is Abundant
There's enough of the stuff to go around. And no one deserves it more than anyone else. It's available to anyone who really wants it. Many people work for a paycheck because they believe that what they earn is fair value for their time and effort. However, the company they work for pays its employees the minimum amount it can in order to stay competitive in the marketplace. Thus the average worker could command far more than he or she gets. Money is abundant and readily available.
The Value of Personal Skills
The average employee may not realize that his skills, talents and abilities can produce far more income than just what he gets from a job alone. Throughout history there have been those who languished in poverty and dead-end jobs to become rich when they discovered that they had personal skills that were in high demand. Their real money value was not limited to a minimum wage job.
The Connection Between Time and Money
Time and money are both commodities. Wealth comes when both are used productively. Unfortunately, for some people, time and money are wasted. Time can be spent working eight hours a day for a set wage while the rest of the day is used for other pursuits. How free time is used can mean the difference between wealth and just getting by.
Money's Increasing Value on Delayed Gratification
When a technological marvel hits the computer stores, crowds of buyers line up and down the street to get it whether they can afford it or not. But delaying gratification until the money is available to purchase a wanted item is far better, as it teaches discipline and the proper handling of money.
The Need to Save
Everyone has heard of the ten percent rule and of paying themselves first. But saving is not on the minds of people when they see those sale prices advertised in fliers and store windows. Saving is important. Since situations can change for the worse, having a reserve of cash to meet emergencies is important. Saving to have something to pass on to the children may make more sense than satisfying a want. Wealth cannot be assured unless something is saved.
The Difference Between Debt and Income
It has to be realized that how much income is produced is less important than how much is kept. A massive load of credit card debt won't translate to much wealth even if the salary to meet those expenses is high. In this case, more money does not translate to more freedom. Many hold down two jobs, moonlight and use other methods to keep their lifestyle intact. Unfortunately, they run but never attain wealth. It's the rare individual who is able to save something from every dollar he or she earns. Debt and income must be balanced to ensure wealth.
Understanding the fundamental difference between money and wealth, and having the ability to act upon this understanding, is what will create more wealth.
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