You’ve paid off your debts, you’ve paid off your home mortgage, your children’ college fund is taken care of, and you’ve got enough money in your retirement account to live off the interest. Now what do you do?
Dave says there are only 3 things that money is good for: Investing (to keep the financial ball rolling), having fun (enjoying life), and giving it away (helping others).
INVESTING in your financial future is easy when you’re in control. Your money matters become enjoyable, more like a ‘game’, rather than the drudgery that comes with being in debt. When you have stable investments, financial fluctuations don’t affect you like they used to. Always manage your own money; even if you have a team of people working for you, YOU should make the money decisions. When your money makes more than you do, you are officially wealthy. When you can comfortably live on your investment income, you are financially secure. If you can live off of 8% of your nest egg, you have crossed over the top of the financial mountain and can enjoy the coast down the other side.
Having FUN with your money is what everyone wants to do; unfortunately most people try to have fun when they are broke. If you want to make a large purchase and you can afford to pay cash, then go ahead and do it. That’s one aspect of ‘enjoying life’.
GIVING is how you improve other people’s lives and it’s the biggest reward of all. Money gives power to good intentions. Buying things may feel good, but giving always feels right. You can make a difference in numerous other lives by helping them in direct and indirect ways.
Don’t allow greed to trap you in the end. Don’t allow your views of wealth destroy your own peace. The danger is old-fashioned materialism. Wealth has a way of magnifying your true inner self – If you are a jerk and become wealthy, you will be a bigger jerk, if you are kind and generous, those traits will be amplified.
Dave says that personal finance is 80% behavior and 20% knowledge, meaning you have to take a long, hard look at the person in the mirror and change who you see, or you will end up miserable.
My ex-wife once accused me of wanting to hoard money. As part of my divorcing her (for numerous reasons), I absorbed all of the debt we had (approximately $13,000), which I paid off in 2 1/2 years. In that same time period, she got back into debt, had a new car repossessed and filed bankruptcy. Years later, she passed away, completely broke. I am happy that our son has grown up with a solid start to his financial future.