And Barb Recommends!
What is Money’s True Value?
As a personal finance blogger, MBA professor, and portfolio manager, I spend a lot of time thinking about money. In fact, I may even spend too much time on this topic. As my goal here is to improve financial literacy and teach smart money habits, this emphasis is understandable.
- Russell Simmons
Yet, I rarely explore the philosophical aspects of money. After all, the only real value in money is what you can trade it for. If you were stuck out in the dessert with no water and $500.00, what good would money be? If you had no transportation and the water was 100 miles away, your $500.00 would be worthless. You’d probably we willing to trade it all for a thermos of water.
So money is important in that you can trade it for things you want and need. But how much do you REALLY “need”? Len Penzo, a dad with two kids, one job, and a house in California alleges that you only need $40,000.00 to live on. At first glance, that seems kind of low for a four person family in a Los Angeles suburb.
Russel Simmons the phenomenally successful entrepreneur touts the importance of YOGA and other non material wealth in his book, Do You!: 12 Laws to Access the Power in You to Achieve Happiness and Success. The Amazon book review states that, ” these laws stem from the belief that all success, be it professional or personal, comes from a connection with your higher self.”
And Jean Chatzky’s research in The Ten Commandments of Financial Happiness; Feel Richer with What You’ve Got, found that above a certain point, additional income adds little happiness to life.
Think About This
Take a moment and think about the things that give you the absolute most enjoyment in life. If you’re like most folks, friends and family are near the top of the list. Price-zero.
Do you hike, camp, go for long bike rides and walks? Price-zero.
Frankly, a Saturday afternoon nap ranks way up there as one of my favorite relaxing activities.
Of course, it would be stupid to imply that all good things are free. They aren’t! I love to travel, and travel is expensive. We own our own home in an nice part of the city. Clearly, our mortgage payment is not “free;” nor are our utility bills, food, cable, internet, medical visits, cat litter, and entertainment.
I happen to love fashion and home decor. They are not free, but neither do they have to be expensive.
Eating out is a special pleasure for El Carino and me. But we don’t eat out too frequently, so that when we do it’s a real treat. And our taste runs to the simple and get lots of pleasure out of a relaxing meal for $20.00!
So What’s the Point?
A popular trend in psychology today is called “mindfulness.” It means acting deliberately and with intention. I expand the concept to imply that when you spend, make sure you are getting enough value and enjoyment from your spending. In other words, spend your money in a manner that is in line with what you think is important. If having a sporty car is important to you, and you can afford it, then great! But don’t get that car just to impress others. You will be sorry.
I saw a woman on The Nate Berkus Show (my guilty pleasure) admit she bought a purse for $1,200. There is no scenario I can envision where I would ever spend $1,200 on a purse. On a vacation, sure. On a piece of furniture, absolutely. What about you?
As I furiously attempt to complete my next 20 Minute Guide Finance book, I am reminded not to lose sight of the point of money. Remember not to hoard nor squander money. Instead, spend it on things that you value.
I love that after I get a nice paycheck, I can take part of that cash and send it off to Japan with no worries! That’s important to me!
Think about why you are working, and how you can maximize the usefulness of your money. And then take it one step forward and be honest with yourself and contemplate how much money you really need to live on.Barb Recommends:
My personal finance network, Yakezie created this fun and informative BLOG SWAP. Each particpant gets paired with another blogger, we guest post on the others site and everyone writes about the same topic; MY BIGGEST FINANCIAL PET PEEVE
- My favorite by Thousandaire at the College Investor, A ROTH IRA isn’t that hard to Understand.
- Robert, from the College Investor wrote about the Biggest 401K Mistakes You Can Make at Thousandaire.
- Jacob from Personal Finance Journey wrote about 3 of my financial pet peeves (spending too much money on drinks, financing expensive furniture, and active investing strategies) on Narrow Bridge Finance.
- Narrow Bridge Finance posted about how people not taking responsibility for their financial actions infuriates him on My Personal Finance Journey.
- Prairie Eco-Thrifter posted about how sales tax is her biggest financial pet peeve at 101 Centavos.
- 101 Centavos posted about how wasting food makes his blood pressure rise at Prairie Eco-Thrifter.
- LaTisha D Styles writes about how greedy banks upset her at Retire by 40.
- Retire by 40 wrote about how bigger is not necessarily better at FSYA Online.
- Bucksome Boomer writes about how advertisers that hide the real price of a product is maddening at The Single Saver.
- The Single Saver wrote about parents who do not teach their children financial responsibility at Bucksome Boomer.
- Tim from Faith and Finance vents about financial institutions charging to send paper account statements, but still send out a plethora of paper junk mail at Live Real Now.
- Jason from Live Real Now politely rants about how aggravating it is to see people whine about their less-than-ideal financial situations, yet do nothing about it, at Faith and Finance.
- Money Sanity vents about people complaining about paying overdraft and bank fees, while at the same time, having no idea how much credit card debt they have or their checking account balance at The Saved Quarter
- The Saved Quarter writes about people who are financially irresponsible and want to complain about how broke they are while showing off the new things they bought at Money Sanity
- Happy Simple Living writes about how companies and people that exploit others aggravate her at Barbara Friedberg Personal Finance.
- I talk about how investment advisors that get paid to sell products (more salesman than investment advisors) upset me at Happy Simple Living
image credit: Wikipedia
What is your money philosophy?
