Sunday, January 07, 2007

This Guy Is Kidding Himself

I will admit it; I'm a tiny bit obsessive about money and money-related topics. For example, I just read this little blog entry at scottburns.com with statistics about national net worth. And in the comments someone wrote: "I have to confess I love looking at data like this. I know it’s not a race and it’s really pretty much irrelevant where I stand compared to other people but it is very fun to look at. "

I love looking at this data also. I'm a data person. But this last statement in a comment to the entry is where I totally disagree. "I know its not a race...," the comment states. Well, I disagree, strongly. It absolutely IS a race.

Not What You're Thinking

I'm not saying I think we should all get caught up checking out our neighbor's wealth etc. because that is not what I mean. But I do believe that it makes sense to remain above the median net worth if you can.

One saying that I've heard and that rings true with me is this: "He who has the gold makes the rules." The idea being that poor people generally don't have much influence or choices. They cannot decide to not work, they need the money. Rich people, on the other hand, have options. They can decide where, if, and how to spend both their money and their time. Since they may not have to work, their time becomes much more free as well.

"Rich Dad" likes to point out that working to earn more to spend more is a rat race; a race we should be trying to get out of. I suppose that is one way of looking at it. But even if we "get out" of the rat race, we are still in another kind of race. We cannot simply sit back. If you have your own money, and have more than other people in your normal age/income bracket, it is likely that you will have the most options. And if there's anything I've learned, its that you should always give yourself as many options as possible. With options, comes freedom.

No comments: