Category: money

What is ‘True Wealth’?

“I believe the key is being able to maximize wealth in both facets as much as possible without sacrificing one or the other too much.”

There is a standard definition of ‘wealth’ as a concept: An abundance of valuable possessions, money, or other resources to the degree that it causes prosperity. However, what is prosperity to you may not be prosperity to others. I like to think of wealth is not an abundance not just of material possessions or of money or of how much you can acquire but also how much you value what inherently belongs to you. What I mean by that is your time, your health, and your freedom. While building wealth is key to having success in life, there are other facets to wealth that we can neglect if you are not careful.

Wealth will come with sacrifices whether it is your time, your freedom, or your health as there are tradeoffs involved. You’ll find that to become more prosperous, you may have to sacrifice time, freedom, or health to build that wealth up whether in the form of money, resources, or material possessions. I believe the key is being able to maximize wealth in both facets as much as possible without sacrificing one or the other too much.

In order to gain more money, you may have to sacrifice your time in the sense that you exchange your time to earn money or you are not as free to do what you want each day because you have to work a job, grow your business, or learn new skills in order to earn the money to become wealthy. The same could be said of your health whereas you may have to sacrifice the time you could use to invest in your own health to build material or resource wealth with the time you put in to earn money or other assets. That time that could be used to be spent at the gym, on a run, going on a hike, or practicing a sport could go to your job or your business or investing into a new asset.

If you can find out what you truly value and what you want to maximize in terms of your wealth, make sure you prioritize it to have true wealth for you. For example, if fancy cars, big houses, and a lot of material possessions appeal to you, maybe you don’t mind putting a lot more time into working for that, putting your health on the backburner, and sacrificing certain freedoms to do what you must instead of what you want to. On the contrary, if you care less about possessions, material wealth, but still want to be comfortable in terms of money or investments, then maybe you can work less, focus on your health and free time more, and exercising more freedoms to do what you want with the extra time you have as a result.

You should decide what kind of wealth is best for you. What truly will make you happy, what you are passionate about in life, and what you want to get most out of life, you’ll be able to build that true wealth. I think the key for anyone is to maximize the 24 hours in a day, 7 days in a week as much as possible. If you can build your wealth passively to get some of your time back, that is a key advantage in my view to having true wealth too. When you can be financially successful by having multiple sources of income, multiple options to build wealth, and with some or a lot of autonomy in your work or business pursuits, that really can be an advantage in not only being successful but happy too.

Wealth is not just about being financially well off but also about being well off in other areas including health, time, and exercising freedom in what you do and how you do it. There is a distinct difference between someone who must rely on others for their wealth building and someone who is able to create their own opportunities or build their own means of wealth in a business, in real estate, or in investments that can create more freedoms rather than slowly eliminate them.

You can have as many possessions as possible, houses, cars, and money in the world but if you have no free time, no health, or no autonomy in what you do or how you earn that wealth, then you may need to reassess if that is the true wealth that you want out of life. I hope that you’ll rethink what wealth means to you because only you can decide what you would like to prioritize as you build it. You must consider that sacrifices will have to be made, that time, money, and health are all commodities that can be saved or lost depending on what you prioritize these days.

I only ask that you realize that having the freedom to do what you want and when you want is underrated. It is a form of wealth within itself along with keeping your health in good shape as long as possible even if you must sacrifice some time or freedom as a result. Consider that you can be very wealthy in the material sense but if you are unhealthy, working all the time, and have to answer to others in order to keep building that wealth, are you truly wealthy or is it only one kind of wealth that you have?

Think about what you are willing to sacrifice, what you are willing to earn, and how to passively build on the wealth you want to earn to save more time and freedoms that can be used for health, time spent with family and/or friends, or enjoying what the world has to offer outside of your own wealth building. Wealth takes many forms as I mentioned so remember that while we often think of money, cars, houses, and other assets, we should remember that wealth can be time spent away from an office to enjoy a vacation, wealth can be an extra hour in the day to use the gym or go for a hike, wealth can be starting businesses that matter to you with hours of work that you set for yourself and only you can hold yourself accountable for. Think about the wealth that you want to build throughout your life and how you want to make it work for you.

Greed Is Not Good

“My hope is that the ethos paraded in popular culture and media of ‘Greed is good’ first popularized back in 1987 by the fictional character on Wall Street known as Gordon Gekko (played by Michael Douglas) will die out and be replaced by a different ethos.”

The ethos of an era or a generation usually spans about 40-50 years. I think we are living in a time of great upheaval obviously due to the COVID-19 pandemic but also due to the economic and social disruptions that occur as a result. What was thought to be as acceptable before the pandemic will likely draw condemnation and pushback after the pandemic. My hope is that the ethos paraded in popular culture and media of ‘Greed is good’ first popularized back in 1987 by the fictional character on Wall Street known as Gordon Gekko (played by Michael Douglas) will die out and be replaced by a different ethos.

I’m not sure exactly what that new ethos will become but I do fervently hope that it will push back on the notion of greed being good at all but rather a detriment to the wider society. This new ethos in the 2020s and beyond will hopefully not prioritize the pursuit of money and fame above all else but rather the pursuit of kindness, caring for others, and leaving the world better than we found it.

While Gordon Gekko is just a fictional villain and the movie ‘Wall Street’ fictional in nature, there are examples throughout our society where people actually believe the ethos of ‘greed is good’ and actively pursue it in different ways without understanding or caring about the repercussions.

I’ll give a few examples that are not from 1987 or even earlier in the 1980s but from 2020: A college admissions scandal which involved bribery so the children of well-to-do families could get into prestigious colleges without earning their admissions, Multiple U.S. Senators caught red-handed doing insider trading to profit off of a pandemic and then not admitting their wrong doing, and large firms receiving loans they likely don’t need while they use that money for stock buybacks rather than investing in the solvency of their workers during the height of this unemployment crisis.

These are just three examples of this hopefully dying ethos of ‘greed is good’ but the problem still is that these kinds of practices, while they are being condemned, they are not being cracked down hard enough and the laws have not been changed enough to prevent future misdeeds. When you have an economy that protects high income inequality, lopsided CEO-to-worker compensation ratios, and a consistent hesitancy to guarantee collective bargaining rates for employees and an ability to raise wages to livable levels, that shows that ‘greed is good’ is still a predominant ideology that is hurting the average person.

The stock market may hit all-time highs but that is good news only for those who actually own stocks and that number is only over half of Americans whereas the gains of the stock market are only truly felt by the Top 10% of income earners. The previous financial crisis of 2007-2009 showed the world how ‘greed is good’ can cause companies to go bankrupt, houses to be foreclosed, and businesses to be shuttered, while no CEO who was responsible for the subprime mortgage crisis actually went to jail. The bonuses continued to flow, and the banking system maintained its solvency, but unemployment and inequality grew for the next few years with both now increasing in 2020 even while the Dow Jones Industrial Average hit 30k for the first time.

I should state clearly that I am not against people going into business, try to make money for themselves to feed themselves and their families, and enjoying the fruits of their labor. However, when people are caught being greedy and harming others in the process as which continues to happen, there need to be harsh consequences and changes to the law. As Theodore Roosevelt knew as President, corporate oligopolies need to be reined in, broken up, and held accountable. Gilded ages may be good for the few, but they lead to disaster for the many. In this pandemic, many billionaires have seen their net worth skyrocket and their stock prices increase but at the same time, you have millions of people jobless, homeless, and in food lines often for the first time in their lives.

The ethos of a culture has to push back against this kind of greed and ignorance. It starts with condemning the actions of those who don’t play by the rules, won’t change the rules to be fairer, and who go out of their way to make life difficult and unfair for others trying to succeed. It also means calling out those people who refuse to pay taxes, use offshore tax laws to park their money elsewhere, and whose companies don’t pay a time in actual taxes while other parts of society suffer. Not only should these practices be condemned but they should be made illegal as well.

Social trust, belief in the goodness of others, and the willingness to do what’s right suffers when greed is pursued #1 above all else. The past thirty years have shown this to be true as the increased financialization of the economy as a whole, loose regulations, increased corporate influence and money in government have all atrophied our system to where we are dealing with serious labor, environmental, and employment concerns.

Not everybody who has earned a lot of money is greedy, but they have a role in helping to make the system fairer by abiding by the rules and respecting the fact that they do have a role in allowing others to have their chance to be successful. You can’t climb up the ladder and then pull it out from under you when you get there. Others who are not greedy but do well for themselves have to remember that they have a responsibility to hold those in power and those who have immense wealth in check to be consistently vigilant that they are not flouting the rules or if the rules don’t exist yet, perhaps they should be incorporated to combat unrestrained greed.

There will always be some kind of inequality and differences in outcomes in a capitalist system but there are clear signs to tell when that inequality has gotten out of control, when greed has become too prominent, and when justice or basic fairness has taken a back seat. Greed is not good, and it should be one of the guiding ethos of the next generation. Being a success, working hard for that success, and spreading that success around so others have a good shot at it is a much better philosophy to embody. What’s good for you is not always good for others. It is important that those with immense wealth or power understand that they too live in a society and there are certain duties and obligations that we have to one another.

Knowing when enough is enough, knowing the difference between right and wrong, and knowing when things have gone sideways and need to be fixed, those are all key components on pushing back against the ‘greed is good’ ethos, which has had its prominence over the past four decades. Greed can harm others, do tremendous damage, and atrophy the bonds of trust in our society. It is important that we never forget these facts and to fight against it as much as we can in our lives, both personally and professionally.