Money is not the Root of all Evil

evil-money

The world appears to be obsessed about money.
The entire human society runs on the circulation of money.
Almost everyone is into making money, one way or another.

We also often observe that…
People dedicate their lives hoarding money.
People stuck worrying everyday about money.
Friends turn against each other for money.
Family and relatives break blood bonds on money issues.
People of authority sometimes do horrible things for money at the cost of the public.

The list keeps going… but…
Money is not evil.

People mistakenly carry this antagonistic mentality about money despite they would like and even love money themselves. So then, they prefer not to talk about it because of their mentality. They may worry that having and liking money will cause other people to think they are evil. However, whether they show it or not, they want more money. And don’t we all. What a paradoxical relationship.

The society supplies and feeds this negative connotation that the word “money” carries because of the bad things that happen when money is involved and what people would do for money.

Money is evil is a misconception and self-limiting thoughts. It also makes us irresponsible to believe that.

At the end of the day, humans are the ones responsible for the evil.
The people who made the choice to do bad things for money are responsible.
There is no other explanation.
Stop blaming.
The responsibility is on us.

Money is not a negative thing.
Money is just a tool.
It is just a dead object.
It is just an invented abstraction for us to trade like people trade goods in the ancient time.
Let us stop putting the responsibility on a dead and abstract thing.

You may also say that money leads or creates greed, but does it really? The fact is that greed is a result of our own thoughts. Human creates greed, and if money has anything to do with it, it is that human allows money to influence themselves to become greedy.

Money is like any other tool we use in our everyday life.
Screw driver, hammer, drill, etc.
People can kill people with those tools, but we never say a screw driver is evil, a hammer is evil. Heck, we can kill people with our fists, aren’t we the evil one then?

As a tool, money provides us leverage.
It gives us power…
Ah, power…
That is the key.
That is where we can attribute why people consider money evil.
As the old saying goes, “Power corrupts, and absolute power corrupts absolutely.”

Money provides power in this society.
Lots of money provides lots of power.
Having an inexhaustible amount of money means absolute power.
Money cannot buy everything but you will have “nearly” absolute power, at least.
So I suppose we can suppose that having a lot of money can screw with your mind if you had not master your mind in the first place.

That is exactly why I write this post.
To get your minds out of the gutter where money is evil.
To clarify that money is a tool.
Money is just a tool.
It is neither good or evil inherently.
It is all about what you do with it that matters.
It is why it is important to understand your values and priorities in life.
What you do with it will dictate its usefulness and meaning, which is why hoarding money for no reason is not good (save, save, save… without spending). And that is exactly what some people are doing.

Another good reason for the clarification is when people think money is evil and as a result…
They don’t think about it.
They don’t learn about money management.
They don’t read about personal finance.
They don’t learn the rules and laws concerning money.
Which becomes a bit of a problem…

It is going to be a problem because they won’t care to read my post!
Ok, just kidding.

It is going to be a problem because in this society, we simply cannot do away with money.
Their ignorance will incur extra cost.
Their ignorance will make them lose their hard-earned money.
They will likely be trapped in “rat race”.
They will likely stay poor.
If they are born rich, they may cease to have financial stability.

Any of that happening would suck. Majorly suck. And it sucks for me too because it is my intention and my hope that people can improve, as I always insist. A hope where people can have happier life because happiness is what we are looking for, after all.

Why don’t you help me spread this message out?

Originally posted 2008-04-17 22:39:44. Republished by Blog Post Promoter

Thoughts on Saving Money in Your 20s

Fast approaching the end of my 20s, I am in a good position to reflect a bit on savings in our 20s.

Is saving money too much for you handle?

Is saving money too much for you handle?

Saving is often discussed together with investing. While they may seem inseparable, we should distinguish between them. Saving is a learned behavior, a habit, and a discipline.

The habit of saving needs to be built up and then it becomes the foundation for future investing.

Having money saved in your 20s, and moreover, programming the habit of saving in yourself is the foundation of your financial future to come.

That said, to start saving, first you need to be clear about two things…

  1. How much you are making — This one should be easy for most people in their 20s because it comes from paychecks, calculating from the after-tax income rather than pre-tax.
  2. How much you are spending — For this one, we can first jot down the fixed part of the monthly expenses. For the variable expenses, spend a few months to learn the range and from there you can learn what their averages are.

Learning about these two things are required! If you really have strong intention about saving, you should be able to overcome both the resistance to sit down and track them and also the unwillingness to learn more about your personal finance… so that you are giving yourself the opportunity to self-denial.

Knowing how much you earn and spend leaves no room to question whether you are saving or not. In other words, doing so will help you to live within your means.

I know this seems very basic but basic things may be the hardest.

If you can keep tracking and maintaining your expense below income consistently staring in your 20s, there is no doubt that you will be in good shape.

You must have a saving account, or else...

You must have a saving account, or else…

Having a saving account separate from checking account and seeing the amount grow could be exciting… at least for me, because it’s similar to what one does playing video game.

That said, I think everyone is different and we all have different preferences and therefore, we will all maneuver in the gap between the money earned and the money spent differently for which I will break it down into three saving approaches.

Note, there is no “right” approach. Rather, it is more about understanding yourself and picking an approach that works for you.

Extreme saving

This is the most unlikely scenarios for people in their 20s because of the amount of discipline and sacrifice usually required to do it — like saving 70% or more of income. Not only is the discipline hard, I find it essential for the person to have identified clearly what they want out of life — like KNOWING you want financial freedom as early as possible — to subject himself through the process because otherwise, it may feel fruitless later on.

If you want to do this… ask yourself, for what purpose? Binging on anything could be unhealthy.

Slow and Steady wins the race

I find what I do fall more into this categories. the idea is to consistently save a good amount like 20-50%, on average. There will be months where it’s not possible but this is a balanced approach where you plan for the future while still able to enjoy things you like in the present.

Save minimally

If you’re in your 20s, perhaps your income is just not far above your expense or you are more into the experiential now, it is okay. Still, take the opportunity to learn how to consistently save by putting away 5-10% monthly into saving. Practice makes perfect.

As a last mention that really does not belong as a “saving approach,” there people who live paycheck-to-paycheck or even go into debt by overspending.

Without talking too much into debt here, it is safe to say that it is best for anyone in their 20s to stay away from consumer/credit card debt if they can help it. Not only will you not be saving, it takes away your future potential savings by having you to pay interest over time. Definitely try to minimize debt in your 20s.

Forget Kin, listen to me.

Forget Kin, listen to me.

At any rate, I leave you with what Bruce Lee’s father had said to him…

If you make $10 this year, always think to yourself that next year you may only make five dollars — so be prepared.”

And that… is why saving is a good habit to have.

What do you think someone in their 20s should know about saving?

Originally posted 2013-01-28 00:32:50. Republished by Blog Post Promoter

Saving Interest Rate Is Not Low Enough

I’m sure that’s what all the banks think. “If only we can somehow make it 0% interest and still get people to deposite their money…”

This post is provoked as I am doing my monthly accounting and noticed this in my ING Direct Saving account.
ing_july_rate

So 1.5% is not low enough and they make it 1.4%, whaaaa….

They are really being unhelpful for those of us who are saving their money.

There are those people who think, “I will lose my money if I put them in stock market. I will not make any interest if I put them in saving. I will also lose money to inflation if I put them under my mattress. To hell with it, I’m going to spend it all.”

For sure that is not the right mentality to have, respective to saving and being frugal, but surely, we can all see why people feel that way, no?

PS. Hope everyone had a good July 4th weekend.

Originally posted 2009-07-05 16:01:24. Republished by Blog Post Promoter

The Sucker Rally of 2013?

Since Janary, the stock market has been on a non-stop bullish trend. While there are a lot of articles that argue stocks will reach new high this year (even though it already has) and much money’s flowing back into stocks from retail investors, there are enough nay sayers that speak of a coming market correction. This realy keeps us on our toes.

An Yahoo article tday that argues the coming of a correction predicated by a surge of inisider selling.

There have been more than nine insider sales for every one buy over the past week among NYSE stocks, according to Vickers. The last time executives sold their company’s stock this aggressively was in early 2012, just before the S&P 500 (^GSPC) went on to correct by 10 percent to its low for the year.

I know the sound investment strategy of buy-and-hold once you’ve picked your choice of investment but I wonder how everyone’s feeling? Do you think a market correction is coming? (Note a correctio is as least 5% and up to 20% price drop).

Will you sell portions to collect the gains now or just hold steady? What will you do?

Originally posted 2013-02-06 01:03:39. Republished by Blog Post Promoter

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