A lot has been said already about money, such things like: “Money makes the world go round” “Whoever said money can’t buy happiness doesn’t know where to shop” “Money is the root of all evil” and as many as you can come up with. 

While the aim of this post is not to debunk or strengthen any of these claims; rather, it’s aim is to help you have a practical look at money. Consider the 5:

1. Money is Neither Good Nor Bad

This is true for the simple reason that it is an inanimate object, meaning it is not alive. As an example, a couch is also an inanimate object, but would you consider a couch in and of itself a bad or good thing?  You never hear someone say that couches are evil. Couches can only do bad if someone uses them to that end, perhaps by pinning another to the wall with it.

It’s the same with money, it can only be used for good or bad if the person is good or bad. 

2. Saving is GREAT, But You Should Spend Too

While saving is great, you must not forget that like all things – even good things – there has to be balance.  If you saved all your money, life can quickly pass you by. Have you read the novel, Silas Marner? The character, Silas Marner, hoarded every single penny he got from his trade, spending very little on himself, only for all his life savings to be stolen in one night!

Hence, you need to prudently enjoy some of the money too. Remember there is more to life than accumulating money, experiences (lessons learnt from buying decisions, the joy of spending on loved ones, yourself and those in need, etc) are equally as important.

3. Money Can Get You Most Things But Not Everything

There are many things in life that money can get you, but there are also many things in life that money just cannot buy. Such things like dignity, respect, love, happiness, good friends, happy relationships, and self esteem.  

And those who have tried to buy these things with money only got a poor imitation! You may compare it to spending a huge amount of money in buying a fake product!

4. You Shouldn’t Equate Money With Control

Though you may have seen how some people use money as a means of controlling or dominating others or a situation, this is not exactly right.

And keeping up with the mindset that whoever has the money has the control can end up making you give your power over to someone who has more money than you do, in the process giving up your independence and ability to be yourself.

5. There Are Many Right Ways to Manage Money

There is no one-size-fits-all when it comes to investing and managing money. Some people grew their wealth through investments in tech, others did so through real estate, commodities, the financial market, and what have you.

One of the best parts about money is that there are many ways to manage and grow your wealth. There are different budgeting types, different investments, different ways to earn money and even different ways to teach money.

Instead, ensure that you are knowledgeable in the many areas of finance, and that you thoroughly understand what you are investing in. These are some of the basic ingredients to investing, according to successful investors like Warren Buffett, and Peter Lynch.

Finally, the only real rule that everyone must follow is that in order to create lasting wealth, one must live on less than you make. Never forget this all-important rule!

This post was adapted from an article on about.com

See Also: What Must You Do To Open a Bank Account?