MONEY A TOOL A brief history of money, our relationship to it, and why you're often BROKE! - by Hugo Rodriguez
The Purpose of this Post
The power to do good, is also the power to do harm.
In this post, we'll conduct and in depth examination of our relationship (mostly adverse) to money. We’ll focus on this aspect because this is where we may have a positive change in the life of certain people. Our ultimate goal is to find equanimity with our finances by trying to get the root causes of many of our financial woes.
Philosophy of Money
The lack of money is the root of all evil.
Countless people strongly believe that money is an evil or a filthy thing that must be hated, and avoided to some extent. Even though it’s not healthy for our psyche to cling to material objects because of their impermanent nature. I still strongly believe that it is a great idea to use one’s or the wisdom of others to understand the purpose and proper use of certain tools, in this case; money.
Very often our ignorance and lack of personal discipline that relates to our finances, is what disallows us to use it to our advantage. Hence the main cause for many to become financial and mental jailbirds to their never ending and often unrealistic desires. This is the idea that only material objects can fill our emotional emptiness. This is seldom true, at least in a permanent way.
Economically and emotionally speaking, this adverse relationship to money, has profound consequences in the short and in the long term. They also affect our mind, our body, and of course our bank balances.
History of Money
“The ascent of money has been essential to the ascent of man.”
- Niall Ferguson
First, we’ll investigate the history and ascent of money. According to the dictionary, money is: “the current medium of exchange in the form of coins and banknotes.” Historically, money has taken many forms. From gold coins, to feathers, to cigarettes, to paper, or even sea shells. Money is that necessary “evil’ element for economies to develop. Money has and will almost always facilitate trade, allow for wealth accumulation, and other vital roles within a society.
If you're interested in the Niall Ferguson's research into the history of money, watch this PBS series:
You can also buy his book here:
The Ascent of Money: A Financial History of the World
Psychology of Money
"Money has never made man happy, nor will it, there is nothing in its nature to produce happiness. The more of it one has the more one wants."
As I mentioned in the first paragraph, if you're seeking happiness in the accumulation or expenditure of money, than you've misunderstood the purpose for money. For example these:
Here's another great article that discusses how our brain operates when it comes to spending, saving, etc:
The Psychology of Money
The deeper one investigates, the more self-evident it becomes. This is, that one’s personal finances is often a psychological and not numerical issue.. This, I think is largely due to one's lack of intellectual self-defense and other accumulated ignorance.
We can no longer go a minute without constantly being bombarded with advertisements. These ads are often developed in a way to sell us some permanent or at least temporary “happiness.” And who doesn’t want to be happy? We all do, it’s a natural desire of every human being. Yet, permanent happiness is something that very, very few people have attained. These individuals seldom claim that it was due to the money that they have accumulated. Instead, it was due to non-sensible accomplishments. Now, temporary happiness or pleasure may be gained by the purchasing of certain items, this face we cannot deny. However, this is where we can begin to make a small difference in our life's. A difference which will have profound changes in our minds and hopefully in our long term financial well being.
How to develop our mental defenses. First, we must understand that some of the world’s best and highest paid psychologists work in the marketing departments of some of the world’s largest corporations. These psychologists, along with marketing geniuses, and tons of money use what are called logical fallacies to put our mind into a state of want. Here are a few of the most common logical fallacies used to get us to buy:
Logical Fallacies with Dr. Michael Labossiere
Another issue is what Buddhist teachings refer to as the monkey mind. This is simply one's mind jumping from one thought to another, and then another without ever even noticing this. This monkey disallows one to actually reason through a financial decision. This lack of reasoning will likely lead one to make terrible choices.
ENJOY THE HOPSIN SONG!
Personal Finances-Taking action-Mint.com
"Never spend your money before you have earned it."
For the common person, managing one’s finances doesn’t require much. The tools necessary are: a piece of paper, a pencil, a calculator (optional), and about an hour or two at the kitchen table. That’s it! The steps are also quite simple:
You can also use the sheet from the link below:
It may also be a great idea to start a Mint account. You may have to invest an hour or so to link all of your accounts, and then create a budget, but it's worth it! Mint will send you texts to make you aware that you have gone over the limits that you’ve set. This has a PROFOUND effect on your spending habits. For many of you, this will be the first time that you become MINDFUL of how much you’re spending in things that you probably don’t need. For some you, this may be the first time that you will realize that you have gone through your monthly’s income by the third week and why you’re reaching the limits on your credit cards, which is a main cause of stress for many people. This frank but necessary realization is what may begin a change in your life. I’ve used Mint for years now, and it’s definitely has an impact on my personal finances.
**If you need help with this, we can meet 1 on 1 and take care of this I have done it countless times** Simply schedule an appointment on here!
Jahaziel Rueda CHHC,CPT,CES AADP
-Expert in nutrition, basic anatomy and physiology.
-Owner/Trainer at Vita Nova Nutrition and Fitness