IN case you’re counting, today is the seventh day of the Chinese New Year (CNY). Last weekend was a nice long one for all of us.
I hope you, like me and my wife, had a great time catching up with family and friends. In our case, there was excessive feasting. I particularly enjoyed our reunion dinner last Sunday, after which we packed ang pow to give them out on Monday, the first day of CNY.
I have long believed that there is a powerful correlation between the Chinese custom of consistently giving cash gifts to one another and the proven economic prowess of the Chinese across the world.
Money generates its own unique gravitational field, which is governed by principles anyone can learn and benefit from. Some mercantile communities, like the Armenians, Jews, Chinese and Sindhis, have done a better job than others in passing down money principles to their children. Yet, we all know individuals of mercantile ancestry who don’t manage their money well and seldom have two coins to rub together, and those from non-mercantile backgrounds who still become titans of business and finance.
In the age old debate between nature and nurture, economic success and failure stem not from a person’s DNA, but from his willingness to learn the laws of money.
But learning is one thing. Applying those laws diligently, sacrificially and purposefully is another.
Some of those laws are embedded in clichés we all know. Consider sayings such as it takes money to make money; save first, spend later; and money flees from those who don’t appreciate it, but runs to those who understand and apply its laws.
We all know how the wealthy often amass influence, authority and respect, especially if they have accumulated their riches ethically.
Sadly, we all also know of sorry excuses for humanity who are thieving criminals who have amassed riches through extortion, corruption and misappropriation. Those loaded losers are the parasitic scum of society and are not worth emulating because they add nothing of value to human existence.
In contrast, those who have grown wealthy through a long, consistent pattern of serving others in a healthy spirit of fair exchange are often able to transform a tiny trickle of income into a stream and then into a gushing river of wealth.
One of the most rewarding aspects of my work as a financial planner has been the privilege and opportunity to select my clients carefully to ensure I only work long term with high-calibre individuals who are at different stages of their journey towards financial freedom.
Regardless of whether they have already “arrived” in style with seven-, eight- or nine-figure net worths, or if they are just embarking on their personal road to riches, I have learnt to identify the character and personality markers of those who manage (or one day hope to manage) their cash competently to amass personal capital and who then deploy that capital with courage.
How may you join their ranks? How may you teach your children to do the same?
FIRST, avoid the trap of loving money. We would be wise to view money as a tool to improve the lives of those we love and to fund causes we champion. We would be unwise to sacrifice relationships, health and integrity just to pile up more and more cash;
SECOND, appreciate and use money wisely by managing it according to priorities. That means placing savings and investing well ahead of consumption;
THIRD, view a growing cash balance in the bank as precious capital with the potential to one day purchase flexibility, choices and economic freedom for your family; and,
FOURTH, deploy your capital intelligently. You may consider doing so in business if you are so inclined. But, not everyone is wired for business. All of us, however, can learn to invest seriously and competently because it is the best route to transforming ephemeral active income into permanent passive income.
The writer can be reached at rajen@RajenDevadason.com and via Twitter: @RajenDevadason
Rajen Devadason is a Securities Commission-
licensed financial planner, professional
speaker and author. Read his free articles at www.FreeCoolArticles.com. He may be
connected with on LinkedIn at https: www.linkedin.com/in/rajendevadason