Money Really is Everything
Bold statement in the title. Polarizing perhaps. Certainly, distasteful to many. Misunderstood by most. And another blog post loaded with clichés.
What’s the deal with money in the first place?
Brief History Digression
Society has come a long way since 600ish B.C. Prior to this time, barter was the currency. It’s difficult to be efficient with the barter system. You are trading a prized Silkie chicken known for its fluffy plumage. You need milk. Bill, in search of a bougie chicken, only has apples to trade or carpentry skills to offer. Neither satisfies your need for milk, so Bill is of little value.
So, society created a standard currency to minimize the friction common with the barter system. Early currencies included stamped coins and precious metals including bronze, copper, silver, and gold.
Paper money became a thing centuries later. Early paper currency was backed by precious metals, providing a ”sense of value.” Fast forward a few hundred years when England, and eventually the United States of America established the gold standard. This yet again provided value and stability to paper currency.
Modern Currency
The United States left the gold standard in 1971, so the only real value in the U.S. dollar is the belief that it is worth something. Sort of like cryptocurrencies. That’s where I’m stopping with the history of currency because no one cares to read about the history of inflation, deflation, and countries trying to manipulate the value of each other’s currencies. Please address inquiries to Jerome Powell.
What’s the takeaway?
Money is a medium. A tool. A means of exchange for goods and services. Bill can buy your Silke chicken with dollars, which you can exchange with a dairy farmer for milk.
Early in life we traded our time and lack of skills for a small amount of money. Stocking shelves and flipping burgers. We reinvested that money (and many years) into education and training to blossom into the skilled professionals we are today.
My ability to safely deliver anesthesia translates to high compensation because ONE -- not many people in the scheme of the world can legally and safely deliver anesthesia and TWO – reimbursement is high. My compensation is provided in the form of a universal currency – the U.S. dollar.
So now what?
The dollar provides a commonly accepted medium to barter, aka we can buy stuff with it. Like what? Literally (almost) anything if you have the dollars to trade. Money can buy:
Time
Experiences
Knowledge
Freedom
Luxuries
Serenity
Solutions
Money can manifest any and all of these. Pay that high school kid to mow your lawn and save yourself the effort, time, and green shoes. Buy that trip to Pamplona in early July for the running of the bulls. Or not -- thanks COVID. Buy a ticket to a Tony Robbins seminar, or whoever floats your boat. Speaking of boats, you can regrettably purchase one to sunbathe while floating down the river or drop a lure to catch some walleye.
Banks will look at your dollars and the amount of dollars you are expected to earn. Then, they will offer leverage of your dollars in the form of a mortgage to further increase your buying power. For a price. This is shelter. And an “experience” with renovations and repairs.
Let’s not forget about freedom. Financial independence. F you money. Financial independence never excludes “financial.” Yeah, you need dollars. The ability to walk away from full time employment. Or retire altogether. Start that financial blog passion project.
Luxuries are intuitive. *Insert unnecessary thing here* can be yours because you want it.
Serenity is big for me. It’s about taking care of my family. Manage spending and investments so my wife can be a stay at home if and when she chooses. Have enough put away to know that if something happens to my CRNA income, we will be fine. Considering insurance, I’m worth more dead than alive. Morbid, but reassuring.
Heavy is the head that wears the crown. This applies to serenity and solutions.
Local Solutions
Now that I have an income again, I’m quick to donate to local causes. Diaper drives and dance uniforms. I dread dance, but when a little gal is selling cake pops in preop, you know she isn’t leaving with any.
I am a seasoned thrift shop shopper and donator for decades now. None of that Goodwill Industries BS. I’m talking local establishments helping local people. The places that don’t take a big chunk off the top.
National Solutions
Thus far, national efforts have been educational via financial coaching. I was casually coaching prior to establishing The Financial Cocktail. Now, I am fortunate to work with some CRNA readers through The Financial Cocktail coaching. Selfless plug as we have just a couple openings remaining. Personalized plan. Monthly video calls. What do you have to lose?
In coming years, I plan to establish a foundation, which will ideally be of substantial size causing the slightest ripple on the state or national level. Much of what I pass down will be knowledge based as most monetary inheritances are squandered within two or three generations. Might as well give to a worthy cause instead. Always good to be reminded of your own mortality.
Talking Money
It’s incredibly important to talk money with your spouse (and children to some extent). The good and bad. Wins and losses. My wife and I determine our monthly spending to live the way we want to live and retire when we want to retire. It’s all give and take. We speak openly about our savings rate, investments, and future retirement. We speak about big purchases on the horizon. Get everyone on the same page with the assistance of this post.
Don’t forget the children. I learned financial principles from a young age. As the years passed, I was given more insight as to my family’s financial position. Money was a tool that provided our way of life from the essentials to the luxuries. Early exposure made the difference.
The Dark Side of Money
Money worshiped or prioritized over all else corrupts. Greed is not healthy. Think Al Pacino as Tony Montana in the fantastic 1983 film, Scarface. So good, such greed. Remain rational about your desire to acquire. What are you sacrificing to build your Miami based cocaine empire? Don’t push others down or burn bridges to get there. It’s not worth it.
Money Isn’t Everything
No, money isn’t everything. But it comprises a major part of everything. Money can’t produce love, friendships, satisfaction, knowledge, wisdom, or success. Money may expedite journeys and hinder others. Money has the power to salvage or terminate relationships. Not even the wealthy are immune to marital problems. Look at Bezos.
Great wealth makes you a more pronounced version of yourself. A naturally kind person will only become more generous when wealthy. Similarly, an unpleasant person will be more of a … well, you get the idea.
Money is my means to fill the aforementioned bulleted list. It allows me to live a fulfilling life, take care of my family, and assist those around me. It afforded me the opportunity to become a CRNA. Sharing my basic understanding of the complex world of personal finance is my effort to better the lives of those who read this blog, and even more, reach out for financial coaching.
Care for money but mind the greed. Best of luck!
