RESOURCE FOUR:
HOOKED on MONEY
by Ms. Marilyn August
One
of the first questions I ask in my seminars
is "What
is money?" Replies range from "Its
the root of all evil... power ...greed... a monster...
something I don't know anything about... or something
that I want..." to "It's a tool, a
medium of exchange or a method of barter."
Money is not any of these things. Money is
nothing more than green pieces of paper and
round metal coins. It is a medium of exchange
for value determined by some arbitrary, agreed-upon,
rate. It is the general acceptance of this
agreement that gives money its value. When
considering a purchase you determine if what
you are buying is equal to the value of the
dollars you are exchanging for it. For example,
when considering the purchase of a TV, you
might ask: "Is the number of dollars I
must pay appropriate to the value I will receive
from the TV?" If it is, you make the purchase.
Value given for value received is the basis
for everything you buy. It is just much easier
to carry green paper and metal coins than cows,
goats, vegetables or glass beads to use in
the exchange.
If only money were that simple to use and understand. Money also has a vast number of emotional hooks based on people's fears, beliefs and attitudes about their financial well being. When I ask people to take out some money and look at it there is always a dead silence in the room. Then I'll hear a bit of uneasy laughter. I assure my audience that I am not going to take their money. After a few anxious seconds people begin to take out their wallets and purses.
Reaction to this simple request illustrates just how emotionally charged and sensitive those green pieces of paper are for most people. People tell me of their tormented deliberations when deciding the amount they would expose for all to see. ("Will she think I'm a piker, or a show-off, if I pull out the 'wrong' amount... either too much or too little...what will the person sitting next to me think?") The mind games that go on during this exercise help people become aware of their hidden beliefs and attitudes towards money.
Many think of themselves as they would an accounting sheet or a budget, and conclude that their net worth is their personal worth. They believe that if they just had more money all their problems would be solved and they would be better people. This misconception is anything but the reality of money. Many people who have substantial net worth can be just as stressed-out, worried and controlled by their money as are people who have fewer dollars. Studies show that a significant number of lottery winners actually end up in debt. These lottery winners have found out the hard way that money doesn't solve all problems but may create just the opposite effect.
One client earning well into six figures just couldn't say "no" to his child's demand for a $2,000 bicycle. This man hadn't paid his taxes in many years. He is a prisoner to his money 'habit' just as surely as the person with a financial statement containing fewer zeros.
It is your relationship to yourself and your
relationship to money that determines financial
health. How you treat yourself is a good indicator
of how you relate to money. If you are a loving,
kind, generous person, more zeroes in your bank
balance may make it easier for you to be kind,
loving and generous. The money is not the cause
of your goodness. Rather it is an enhancement
of what is already true about you. Once you realize
that your self worth has nothing to do with your
net worth, you will no longer be 'hooked on money'
as the only source of richness and fulfillment
in your life. At this point you are well on your
way to financial health and true wealth.