Accumulating v. Utilizing Wealth
December 23rd, 2009 // 3:59 am @ Andrew Rosenbaum
Accumulated money means nothing if it’s not utilized properly. There’s a huge difference between accumulating money and putting it to good use.
Accumulating without utilizing is like buying a cruise to the Bahamas then never going.
The basic premise of the accumulation theory is that collecting money — gathering a “nest egg” — guarantees financial protection.
But no amount of money guarantees happiness or, for that matter, security. Many Wall Streeters are discovering this.
I believe in the utilization theory, which says money gains meaning by how it is earned and used.
What is true is that money is a tool and, like all tools, it is designed to do a job. It’s up to you to use that tool to enhance your happiness.
People who enjoy lasting wealth have a deep understanding of money — what it is and what it is not. Money isn’t as important as the asset that produces it.
With the utilization theory, the idea is to limit the risk that the asset will lose its power to provide financial security for you.
The more risk we take on, the more stress and pressure we experience, regardless of how much money we have or make. The more we use money to transfer risk, the more economic confidence we feel.
Purchasing a guaranteed contract that provides a reliable return, virtually risk-free, and ensures your family’s financial security if you die, is a wise use of money.
Category : Accumulation v. Utilization &Economic Confidence &Financial Certainty &Financial Risk &Permanent Insurance
