“If you get to my age in life and nobody thinks well of you, I don’t care how big your bank account is, your life is a disaster.”
–Warren Buffett
A dear friend of ours died a few days ago.
She was a good person. But within the space of about a year after her cancer diagnosis, her life came to an end. Cancer was an opponent that she could not beat.
For me, there is nothing like the death of a friend to wipe away illusions. It makes you wonder about your own life, whether others think well of you, and if you have made a positive impact and done the right things. You also wonder if you have done enough for others.
You realize at that moment that you do not have forever. And money is not everything.
So, writing this post this week was hard. And it focused me on something we don’t talk about nearly enough. This post is about the why. In the big picture, why should you care about money? Is the mindless pursuit of money a kind of an insipid waste of time? Or can it actually help you and others while you live your life? And if so, what can it help with, and in what ways is it useless?
We will talk a bit about situations when it matters most.
REASON 1: HAVING MONEY OFTEN HELPS YOU LIVE LONGER
Money cannot purchase health. But there is a correlation between money and life expectancy. So, self-preservation is a factor that motivates many people.
If I told you that you could develop a skill or habit that could lengthen your life, you might think that exercising and having a healthy diet were virtues that could help you get there. And you would be right. But it turns out that making money and managing it correctly can indirectly influence your longevity too.
See here for a full explanation as to why. The author makes several points that bolster the argument. Money can help extend your life and improve its quality because it:
- Allows access to better health care.
- Gives more options to be with and interact with like-minded healthy people.
- Increases access to better information about creating habits for longer life, including diet and other lifestyle choices.
- Avoids the financial necessity of living in unhealthy places that may, for environmental reasons, shorten your life due to poverty or pollution.
Money is not some magic cure-all and must be used correctly to achieve any or all of these longevity goals. But it is a valuable tool.
Most of us want to live longer, healthier lives.
REASON 2: IT CAN IMPROVE THE LOT OF YOUR FAMILY
It is one thing to want money for entirely selfish reasons. It is quite another to want it to benefit your family. Money spent helping your spouse, and kids live comfortable, fulfilled lives is well spent. However, spending time for that purpose is about being responsible at a fundamental level–and doing the right thing.
Moreover, money can often give your family more choices and options too.
REASON 3: IT CAN MATTER TO OTHERS
I have made no secret that I admire philanthropists.
The more money you have, the more options you have—including the opportunity to contribute to others in society beyond the members of your own family.
A famous example is the Giving Pledge, authored by Warren Buffett and Bill Gates. The idea is for the world’s wealthiest people to pledge to give at least half their money away.
That pledge benefits others without resources. It can change their lives.
For instance, the Gates Foundation has given away millions of mosquito nets in Africa and nearly wiped-out malaria in some parts of the continent. Of course, that would not have happened without Mr. Gates’ generosity.
Millions of lives have been saved.
REASON 4: YOU OBTAIN THE RESOURCES TO BECOME A GOOD EXAMPLE TO OTHERS.
Buffett’s quote at the beginning of this post is instructive. Money sometimes gives you an improved chance to do the right thing. Financial independence can mean you do not always have to act expediently. You can operate from altruism and honesty instead.
For instance, if you needed work to feed your family but had a dishonest boss, you might ignore his behavior to keep your job and keep the paycheck coming. But by being financially independent, you could quit that job and become an example of how we should all act.
Of course, having the option to act ethically does not mean you will do it. Many people have big bank accounts, act expediently, and their lives are a mess.
REASON 5: CONTROL OF YOUR MONEY CAN MEAN CONTROL OF YOUR TIME
In my case, I retired at 50. And I am glad I did. I have been able to control my time enough to travel to and accomplish some important things outside of a work environment. Most importantly, that freedom has given me enough time to work on benefitting others with non-profit work.
CONCLUSION
Money does not solve everything or even most things. But it does have relevance because it is often intimately related to long life and self-preservation. Moreover, money resources can help protect your family, benefit society, and allow you enough control over your own life to avoid bowing to the pressure of expedience. In other words, it can make it easier to do the right thing.
It is also essential to understand what money can do on behalf of others and how dangerous it is to become completely selfish. For example, I remember watching a TV show about someone who had accumulated a massive closet full of hundreds of designer shoes in their expensive penthouse suite. And I could not help but think what a staggering waste of resources that was.
Watching that was a disaster.
Money is essential to getting you and others what you want and need. And it allows better options to do good. So, learning about this tool and using it wisely can make a difference.
But remember, it is only a tool. Whether you really use it wisely is up to you.
Disclaimer: consult with a financial fiduciary before taking any steps outlined here. Not all advice may be suitable for your circumstances or investment style.
Photo Credit: Travis Essinger
License: Unsplash