To make money… No other language or nation had ever used these words before; men had always
-Ayn Rand, Atlas Shrugged
thought of wealth as a static quantity–to be seized, begged, inherited, shared, looted or
obtained as a favor. Americans were the first to understand that wealth has to be created.
Money = Wealth. Nope.
There are many misconceptions about money and wealth. First of all, although many equate the 2 concepts, they are not the same thing. A person can have a lot of money and not be wealthy. And some wealthy people have little money. So, let’s get the terminology straight.
To summarize, “money” is cash, and “wealth” is an abundance of assets. If you signed a contract to work for the next 10 years and got paid in advance $400,000, you would have a lot of money, but you would not be wealthy. That amounts to $40k per year for 10 years. Similarly, if you have $100MM in real estate holdings, but only have $1000 in the bank, you have little money but you are still wealthy.
Scarcity Mentality. Shortsighted.
Those who operate out of scarcity believe that money is finite; for someone to acquire more money, another person must have less. While that can be true, it is definitely not universally true. Consider our population growth. If money and wealth were finite, then as our global population has grown, the “pie” would be divided into smaller and smaller pieces. Historically that has not been the case. As populations have increased, so have the Gross Domestic Products of the world. Money and wealth have increased dramatically.
Why does this matter to you? If money and wealth can be created, then it becomes a matter of “how do I do that?” rather than remaining in a state of lack. If you want more money, go make some. Time is the only truly scarce resource. Money is “creatable”.
Money Is Evil. Flat-out wrong.
I can’t tell you how many times I’ve seen the Bible misquoted as saying, “Money is the root of all evil.” The real statement is, “For the LOVE of money is the root of all evil” (1 Timothy 6:10, emphasis mine). Leaving out the word “love” and taking this verse out of context render it meaningless. This Bible verse is all about loving money more than loving God. Loving anything (money included) more than loving God is how evil gets into our hearts. Money is not the root of evil nor is money evil at all. Money is a tool. It is neutral. It can be used for good, and it can be used for evil.
Those who have wealth are not inherently evil either (at least, not any more or less evil than the rest of humanity). Some use their wealth to help others and make the world a better place. Others are selfish with their wealth and actually do harm. The same can be said of every human being and whatever gifts, talents, skills, or tools they have at their disposal.
It’s time to end the victim-perspective and choose a new path, one in which you can make more money and create your own wealth.
