How Much Is Too Much?

Reader reactions on the subject of money and our relationship with it

We have had to surrender to the never-ending flow of our reader’s reactions on Money. I for one never ever realized the variety and diversity of feelings, opinions and beliefs about Money. Since the issues shared on money by my readers are of widespread interest, we have chosen to devote this week as well to some selected responses. 

I would like money only in moderation. I would know how to spend a windfall by starting a school and orphanage but to protect it from grabbers, thieves and relatives would be nightmarish. I am more scared of the friends and relatives that who’d start crawling out of the cracks.

PK Maheshwari

Ankur Gupta : Should we therefore say : Be rich to yourself and poor to your friends?
 
Money gives me meaning. I believe that more money makes things better and yet there will never be enough money. You list points like “There will never be enough money.” and “there will always be enough money”. How can they lead to self-destructive financial behaviours?

Manak Pincha

AG : “Money scripts” by themselves cannot be wrong or right. But a rigid belief in any of them without the flexibility in various situations could be detrimental.

Since everything in the universe is God’s creation, so is money. God is everywhere - in the temple as well in the bank. The only problem is that if one spend all the money on oneself or hoards it, it starts giving negative results. I for one, find it extremely difficult job to determine how much is enough for me and how much to spend for the needy.

Shailesh Agrawal

AG : Perhaps we could even view money as simple survival necessity like air or water. Who parcels what for whom, then becomes a pertinent thought.

In modern society, money is a powerful motivator for innovation. It is what drives the entrepreneur to take risks and without it, many of the recent advances in science and technology would not have occurred. There is nothing wrong with wanting to be rich (or richer).

So how much money is too much? The answer must be that no amount is enough. To draw a line at some point is to ask one to snuff out his/her passion, to stop living when he/she reaches that threshold.
The key issue is what one does with personal wealth. A lifestyle devoted solely to ever increasing personal consumption and self glorification (Laxmi Mittal comes to mind, the Ambanis might fit the category too) seems unsatisfying, even disdainful.  Why is that? Why should the onus for “greater good” be borne just by the wealthy. I believe that the answer is that it shouldn’t. All of us, regardless of income level or personal wealth, should give a portion of it to worthy causes (whether it is 1 or 5 or 25 percent is a matter of personal choice.) When enough people do it, the collective impact can exceed that of a few billionaires.

Rakesh Mital

AG : That is a wonderful articulation and expression about what money means. 

Next week, we move on to Fears. Keep sending me your suggestions, questions and responses

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Thought for the Week

“Money is better than poverty,
if only for financial reasons.”
Woody Allen (1935- )
American Humorist
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First published in Gray Matter - The Hindustan Times

How To Manage A Windfall

Views on money and its importance

Imagine that you just won the lottery, inherited an unexpected fortune, received a major legal settlement, or sold your business. What do you do with all that money?

You may think that your financial worries are over. The reality is, this kind of “sudden money” brings with it a host of emotional and financial challenges that most people never anticipate. 

Every day, regular people squander inheritances, salary bonuses, tax refunds, and gambling winnings. That’s because, contrary to popular belief, it’s hard to spend money well. A windfall is the unexpected receipt of an amount of money. But spending a windfall wisely is even harder.

Blowing away lakhs of rupees seems practically impossible, but these tales are not uncommon, say the experts.

“...there is a widely held belief that money solves problems. People think if they had more money, their troubles would be over. When a family receives sudden money, they frequently learn that money can cause as many problems as it solves,” says Susan Bradley, author of Sudden Money: Managing a Financial Windfall. She concludes “For many people, sudden money can cause disaster.”

There are people who are wealthy and unhappy.  There are people who are wealthy and very happy, with extraordinarily intimate loving relationships. But money is neither good nor bad in itself; it is our own relationship to it that will determine what it turns out to be.

Money cannot give what you do not possess - meaning in life, happiness, fulfillment, peace, good intimate relationships, a sense of belonging, etc.   Money may help these things happen but money cannot make them happen.

While there is great spiritual and emotional value in doing good things for others, it does not, by itself, guarantee a safe future.  Regardless of how “good” you are, your financial life will not take care of itself without effort on your part.  

You probably know many good people who have dedicated their lives to doing the right thing for others.  But they may still find themselves struggling to make ends meet.  

At first glance it would seem that “the universe” has not magically supplied all of their needs.  

Actually, “the universe” provides us opportunities, on a daily basis to help shape our own future.  Some of these opportunities include budgeting and saving.  If we fail to take advantage of these opportunities, it may seem as if the universe has failed us.  Actually we have failed ourselves.    

Certain “Money Scripts” are at the core of all of our financial behaviors. They are the internalized and typically unconscious beliefs we have about what money is, what it is not, what it can or cannot do, the role we play in it, and the role it plays in our lives.  They are formed during childhood and reinforced throughout our lives, often appearing as self-fulfilling prophecies.  

This is also a predominant script for those who work in the helping professions.  They tend to be underemployed and/or make ill-advised financial decisions in an unconscious attempt to “get rid of what we don’t deserve”.  That is why individuals who experience “sudden money” events are often back to their original level of financial existence within several years.

Personal life coach, Dr. Ted Klontz has identified some of the most common money scripts. He cautions that if left unexamined and unchanged, these could contribute to some of the most common self-destructive and limiting financial behaviors.
• More money will make things better
• Money is bad
• I don’t deserve money
• I deserve to spend money
• There will never be enough money
• There will always be enough money
• Money is unimportant
• Money will give me meaning
• Its not nice (or necessary) to talk about money
• If you are good, the universe will supply all your needs

Which of these is yours?

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Thought for the Week

“Here’s something to think about:
How come you never see a headline like
‘Psychic Wins Lottery’?”
Jay Leno
American TV Host
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First published in Gray Matter - The Hindustan Times

How Much Money Is Too Much?

Readers share their views on money and its importance

Last week’s Open Mind evoked a variety of enthusiastic responses amongst our readers.

Dr. Shekhar Misra, Professor - International Marketing, University of California, USA :
This is a very good piece that puts “money” in perspective. Much too often, it is considered (almost) a “dirty word”, even though it is simply a means of exchange, as your piece elucidates. It is not something to be worshipped, but neither should it be despised. Whatever be our goals in life - enlightenment, helping others, bringing happiness to others or to self - money is a needed facilitator much of the time, but not all the time. No more, no less.

Some years from now, people will have a much more positive image of Bill Gates as they learn about the results of the work that his Foundation is doing in the eradication of diseases. It takes a very long time to impact such widespread diseases and their ravages. Gates couldn’t have undertaken such massive efforts to alleviate the lot of humanity without all the money he earned. (NOTE: I used to be a critic of Gates, and it is only in the last year or two that I have developed a more favorable impression. 

For a brief introduction to what I am referring to, look at http://seattlepi.nwsource.com/globalhealth/151538_global08.html

Vinod Jain : 
Money is the barometer of success. We normally hear people say that these days money has no value.  The fact is that money has remained the same but the prices of commodities has gone up. When I shifted to Mumbai in 1981, milk was Rs 4 a litre and now it is Rs 28 a litre. But I still drink only 200 ml daily.

Money cannot be destroyed or created. It only changes hands - from one person to other, from one generation to others, from one country to other.

Harprit Kour : 
Money may not be everything in this world but it can buy you many things which can give you happiness, pleasure and satisfaction. A person is not rich by how much he earns but how much he can save. How you use money is very important. If used wisely, one can become a rich person with not just money but also good ethics and behavioral patterns as well.

Pradeep Maheshwari, Delhi
Money is only a means of exchange which gives independence. How we use it depends on how our character has been shaped by our upbringing and education.

Chandru Badrinarayanan : 
I have experienced a roller-coaster in terms of monetary comfort. You do not get more pleasure by spending more money. You should never raise your lifestyle to such an extent that you will not be able to sustain it, when disaster strikes. Always raise your lifestyle at a slower pace than your earnings.

Shailesh Agrawal, Delhi : 
It isn’t merely a matter of how much you have, but of how well you use what you have. When you have more than enough, you start thinking about having more money. Ultimately, one is as wealthy or poor as he thinks himself to be.

Ramesh Rawal, Delhi : 
Earning money through legal and desirable ways is as important as spending it for the benefit of society. One should also have a non-monetary goal - feel happy for others.

Vinod Dhall, Dar-es-Salaam : 
Money is the foundation on which a human being can build a happy and useful life for himself, his family, biradari, and society (the order is deliberate). The Bhagwad Gita says that “Nirdhanta sab say barra paap hai”. (Impoverishment is the biggest sin).

Vicktor : 
All notions and quotes on money are rubbish. Forget about “smelling the roses”. After college, the only aim in life should be to earn more and more money. Everything else follows. While there should be a balance, you should first have the money, and forget all gyaan. The moment you smell one rose, there are plenty others in waiting. The rose named ‘complacency’ tends to sink into your blood and all your motivation to work hard is gone. The pleasure of the green buck is more than a ten thousand roses put together. You can see your child go to an international school. You can help the needy. You can forgive and let go. So one must work hard and get the money home. Nothing else matters. That is what you are here for. Not to start another religion.

So there you are. Money means different to each one of us. Take your pick.

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Thought for the Week

“Money frees you from doing things you dislike.
Since I dislike doing nearly everything,
money is handy.”
Groucho Marx (1890 - 1977)
American Comedian
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First published in Gray Matter - The Hindustan Times

Master or Servant?

Money matters even when your goals are non-monetary ones

GOT ANY CHANGE
Through history money has been any object/s - coins, shells, beads, cacao beans, pieces of gold, silver and paper - that is generally accepted as payment for goods and services and repayment of debts, being a unit of account, and a store of value. The term originates from the temple of Juno Moneta located on Capitoline, one of Rome’s seven hills, where the mint of Ancient Rome was located.

George Bernard Shaw said that “Lack of money is root of all the evils” , while another philosopher said that  “Money is a barrier against all possible evils”  and the New Testament expounded : “For the love of money is the root of all evil.” 

So whom do you believe?

That’s an individual choice. But a general truth would be that money is one of the key factors that create distinctions betwen human beings. All men are born equal, but the assessment of big or small, successful or unsuccessful is all too often made on the basis of who’s rich and who’s poor.

In today’s society, if you don’t have money, you have bigger problems. For money is not everything, but it certainly makes life easier.

But as the Chinese philosopher Chuang Tzu (399-295 BC) has said, “To have enough is good luck, to have more than enough is harmful. This is true of all things, especially of money.” 

But how fair is it to pin the blame all or even any evil, on a medium of exchange? Blaming money for evil is like blaming the scoreboard for the cricket game. 

The desire for money is good when people play by the rules, and when their desire for money and status results in better ways of doing business and in inventions that help people and that make the world a better place. The negative side emerges when the desire for money is strong enough to make people do wrong things in order to obtain it.

For instance, money can help facilitate the development of genius and extraordinary achievements. It gives us the leisure to devote a part of our time to culture and art. It can help ease some of the anxieties that assail us.

Money can help us attain many of our goals.

But you might say, “What if I only have non-monetary goals?”  Let’s say you have fitness goals, study goals, or maybe a goal to improve your relationship. How does money figure here?

Fitness : You want to run/cycle every day? Shoes cost money, a bicycle costs money.
Education : Want to register for a course? You need to pay fees, buy books.
Your relationship : Everything from gifts to movies to your privacy costs money.

So money is a tool. How can we get this tool, to enable us to progress with our goal setting. You can either reduce expenses, or increase income. The former is not the easiest (but not impossible).

So let’s get realistic about money.

But let’s not make the mistake of seeing money itself as the goal. When we do so, we can lose sight of many of life’s joys -  we should always have time to stop and smell the roses.

As Francis Bacon put it pithily, “Money is a good servant but a bad master.” 

So money is a tool that’s used in your goal setting endeavors - nothing more, nothing less. Each of us have our individual way of prioritising money in our lives. Send me your thoughts on this subject with the subject line ‘Money’. We will discuss them next week.

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Thought for the Week

“No one on this deathbed wishes
he had spent more time making money!”
Dr Joseph Murphy (1898-1981)
Author
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First published in Gray Matter - The Hindustan Times