Money Is Just a Tool

I’ve been doing a lot of reading recently and I have been thinking about the concept of money and how different people look at it in different ways.  The main concept of these books is usually that rich people generally see money as a way to gain more assets that can in turn produce more cash flow, while the middle-class and people who struggle financially see it as a means to get what consumer items and lifestyle they want.

Is Money a Means To An End or The Goal Itself?

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The more I considered these notions the more I have come to agree with them.  I think the real important concept at the root of people’s relationship with money is the comparison between seeing money as a tool and seeing it as your salvation.  People who think earning a little more money will make them happier because then they can afford a slightly bigger car, or 100 square feet more of house, will likely never be rich, and will also likely always complain about their current economic condition.  People who view money as a tool that enables them to build their own independent streams of income have a much different relationship with it. Of course there is the third type of person who loves to work, and whose wage allows them to live exactly the type of lifestyle they want.  These type of people are usually very happy, and my only concern for them would be that they are not financially independent if their company fired them, or their wages got slashed, but by and large, these type of individuals will be fine.

Money Is Just a Tool – Financial Independence 

I personally love my job of teaching, but I am fairly certain that I am not meant to spend more than about 10 years in the classroom.  I have begun work on a masters degree, but I am not even sure that I want to climb the administrative ladder.  I may, but getting the degree just gives me more career options and allows me to learn something new that will benefit me in any number of job environments.  I have also tried to find a number of streams of income outside my line of work that will allow me to become financially independent at an earlier age.

The term financially independent is an important one to consider when thinking about money as a tool.  Whether someone wants to retire early or not is irrelevant to the idea that you don’t need to depend on a single paycheque from a single source any longer.  When you have reached this point you can truly decide what you want to do with your time.  There are many different ways to get there.  Some people start there own side business and then sell it, or make enough profit off of it to hire someone else to do the day-to-day operations.  Others invest in income-producing properties (landlords).  Still other people advocate for investing in dividend-paying stocks such as Royal Bank or Wal-Mart that will pay you handsomely every quarter for being a part owner of the company.  The bottom line is that earning and spending a lot of money does not make you financially independent. The only way to ensure you are eventually financially independent is to create multiple streams of income for yourself and treat money as a tool to further your overall financial position.  If that means thinking like a “Rich Man” then I guess I do, but I just believe its thinking like someone who doesn’t look at money as some special goal in and of itself.

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Money is never the goal! Money is a reward for doing something well. Teaching has a variety of career paths. Going into administration can be rewarding, if you like what you do. Remember, You want to be recognized for your good work so you can be promoted. If you do it for the money, it won’t be satisfying on a number different levels. As a teacher, I enjoy being in the classroom and I do not want to deal with the adults.

It is very easy to say that money is never a goal.

It is not only multiple streams of income, but passive income! This is really guarantee that you are financially independent. Does not mean that you will retire, you might as well keep working as teacher!

Nothing wrong with thinking like a rich man!!! I totally agree with your statement “The only way to ensure you are eventually financially independent is to create multiple streams of income for yourself and treat money as a tool to further your overall financial position.”

Great point of view on the topic of how we look at money, thanks for sharing your thoughts!

I taught in a large inner city high school in London many years ago and could see then that administration was the career path. But that took good teachers away from the classroom.

It hasn’t got any better I think with the rise of managerialism and continuous measurement and point scoring.

Teaching and enthusing young people is such an important role but people have to be secure and happy. So financial independence, whem achieved, will give you the chance to carry on with what you love doing without having to crawl up the greasy pole.

I use money as a tool. It is simply my tool to help me get more of it so I can realize my early retirement dreams. Having a bunch of money means nothing to me if I doesn’t help me see my goals come to fruition. From my experience people learn over time how to use money. The younger generation sees making money as the goal. The older generation sees money as a tool

Barb Friedberg

I like the title. I sometimes forget the “tool” part and look at money as the actual product. Good reminder.

Great post. I see it all the time, people that don’t have money use it the wrong way while those who have always had money use it to get more. Money can definitely be a powerful tool if you learn how to use it. Money shouldn’t really be your end goal though, otherwise you will never be satisfied. Find out what you want to be, do have and use that as the end goal instead.

What a simple post that if I had to guess 50% of the population doesn’t understand, and 30% doesn’t care….It also leads to the discussion that if money is just a tool then wealth isn’t good or evil…

Great post, totally agree. Especially liked this:

“The bottom line is that earning and spending a lot of money does not make you financially independent. The only way to ensure you are eventually financially independent is to create multiple streams of income for yourself and treat money as a tool to further your overall financial position.”

Cheers!

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