I was talking to a friend yesterday who said that wanting more money was bad because you will never have enough. You will always want more and more.
I disagree. I think it’s usually a good thing to want more money.
Before you label me another greedy 20-something who only cares about his bank account, hear me out.
Money, at it’s core, is a good thing
Money represents value created. People are able to retire because they worked and created value that was stored in the form of money. They can now use that value they created – perhaps decades ago – to purchase things they value, like gas to drive and see their grandchildren.
Which brings me to my next point:
If money is value, wanting more is not a bad thing
To attain money (legally and morally) you need to do produce something that someone else finds value in. Money – at least paper currency – is simply a representation of this value. Whether it’s photographing a wedding, managing a social media account, or fixing a plumbing issue, you have to do something of value. Wanting to create more value is not something bad!
With all that being said, I think when it comes to money there is one thing of utmost importance:
Why you want money
To get money, you have to trade time, you have to trade effort, and most of all you have to sacrifice. I think the single best reason to pursue making more money (remember: making money = creating value) is to give you more time and flexibility.
If you are in debt or making minimum wage at a physically demanding job (Pizza Hut chef anyone?), it’s going to be difficult to find more time or have flexibility when you aren’t at a job that allows you to gain/develop skills, make enough money that allows you to save up a large emergency fund, or that simply drains you. It’s also hard to have flexibility and options when you are straddled in debt.
Making more more money can definitely help you gain flexibility and potentially more time, not to mention provide for yourself and your family to a greater degree.
I do think there are bad reasons to pursue making more money. As soon as your identity is intertwined with your bank account, you are viewing money the wrong way. While there is definitely nothing wrong with having a lot of money, it also does not make you “better” than anyone else.
Once money becomes a measuring stick and you become obsessed with “getting ahead” of everyone else, you will quickly forget that money is really nothing more than a tool. It’s a store of value that you can use to have experiences, security, flexibility, and options.
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I wrote this post in response to the belief that wanting more money is a bad thing. Money can be a great tool for storing the value you’ve created and using it at a later time. I personally want to make more money so that I can reduce the anxiety of not having money when it’s needed, like when an emergency comes up, and so that I have more options and flexibility in my future.
What do you think are good and bad reasons for wanting more money?
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I don’t necessarily think that wanting to make more money is a bad thing. However, as you point out, the reason behind that determines whether or not it can have a positive or negative impact. For instance, wanting more money for security sake is great. Wanting more to simply have more than others can lead you down a dangerous path.
@GregatClubThrifty Security is huge. I think everyone at their core want financial security.
Good post DC! I think you hit the nail on the head in your last paragraph. I don’t think there is anything wrong with wanting more money….it’s the motivation behind it which shows the intent. Once it becomes the end all be all then I think you’re on shaky ground.
100 percent agree with your sentiment. The first time I told my mom I wanted to be rich she see reeled around and said “Why?!” I grew up around children of very wealthy parents and my mom seemed concerned their mentalities had rubbed off on me.
My parents lived below their means and never flaunted their financial successes. They didn’t see money as a bad thing, but just a means to live comfortably in life and help others. My mother was concerned that I wanted wealth for the wrong reasons. In reality, I want to be able to enact change in my community. I understand wealth isn’t the only way to do that but it helps.
@BrokeMillennial I certainly don’t think having wealth can HURT your abilities to help others. Granted, some of the people who made the biggest change in the world were very poor. I don’t think I NEED money to help others, but I can’t help but think that if I was out of debt (or at least had enough in savings that I did not have to stress out about it, ever) and had a significant cash flow, I would be able to have more time and energy to dedicate towards things I’m passionate about, which includes helping others and supporting charities/causes that are important to me.
Money buys freedom and generally, wanting more is a good thing. Everyone has a spot where having more won’t improve happiness or quality of life, but as long as you are not there, you can safely aim for more. Even wanting more money to spend on bling could be considered a good reason because you don’t put the bling on credit.
@RFIndependence Good words! I hope to reach that point at some point in my life, but right now I really just want to get a big enough cash flow each month to cover all my monthly bills and allow for some aggressive saving/debt paydown. Eventually I hope to “buy” time to do things I enjoy and/or pursue things that I simply am not able to if I have debt and/or not enough money in savings/investments.
Also, the more money you have, the more generous you can be to others. You may want to be able to help out friends or family in tough time, or donate to your favorite charity, but if you don’t have enough money, you are stuck in a position in which you can’t help. I agree with you; wanting money is not a bad thing. Money gives your options. It’s the intention behind wanting the money that can sometimes be a bad thing.
http://www.caralynerickson.com
@caralynerickson I agree on that one, and it’s a big reason why I am so passionate about personal finance, making more money, saving more money, etc. I would love to be able to help others both here and abroad, and I believe working hard – even if it means sacrificing in your “spare time” – is usually worth it.
Wanting more money is not bad for me, as long as I have a limit. I get caught up in perfect numbers and overlook everything else. Like for instance my no spend challenge. I was so caught up in paying my debt off early I neglected everything else. It wasn’t pleasant.
@Financial Black Sheep There are definitely sacrifices and trade-offs when it comes to money. It’s very easy to trade time for money in the form of a job, but what about building a business that gives you potential to make money when you AREN’T working? Even if you are on board for that you have to deal with the question of how much will you sacrifice towards that cause.
I think there is a balance that needs to happen (I always say that-can you tell I’m a libra?). It’s important to value what you have and appreciate it…because only then will you not be blowing thousands of dollars on stupid things, which in turn makes you think you need more money. But if you do those things and you still could use more for retirement, security, health, safety, some leisure activities, less worry, etc, then that’s completely reasonable. I feel strongly about that because I am one of those people who could really use more based on where I live. But I’m talking a reasonable amount here.
@Beachbudget I love your perspective on this. Basically my takeaway from your writings on LA is this: be happy with what you have, but continue to look for new opportunities and possibilities. Working abroad, moving to a lower cost-of-living city, etc. It’s important to continually evaluate these things.
This is something that I’ve been thinking about a lot lately and actually have a post in the works for it. At what point will I get tired of constantly being busy with both my side hustles and main job?!
@SenseofCents I’ve thought the same thing, though I am fairly confident I won’t get sick of being constantly busy with side hustles for a long time….i.e. when my student loans are gone, emergency fund is fat, no car loans, renovations done on the house…it could be a while ;)
Money doesn’t have any moral value, and isn’t inherently evil or good. WHY you want more money is definitely the question to be asking. Totally agreed here :)
@iHeartBudgets Glad we are on the same page!
Yes – it is one of my pet peeves that people vilify money all the time. It is a means to an end, simply a tool. I can do a lot of good by having more money. My favourite example of “this is money but we’d have something else if it wasn’t” was a big speech by an enviro econ prof I had, who explained how we could use grape juice, but it would just end up being like money if we were to do so.
@Ugifter Your enviro econ prof couldn’t be more right. If it wasn’t paper currency, it would be something else. Material things have value even if they need to be converted into paper currency before using to purchase other things.
What a key point: “it also does not make you “better” than anyone else.” I wonder if that is why some people view wanting more money as a bad thing? Perhaps they have been around people with lots of money and those people treated them badly, or those people thought they were all that and no one was better than them. I’ve met people in my lifetime who thought they had a lot of money and thought they were the best thing since sliced bread and then I have met people who really did have a lot of money but never mentioned it, or flaunted it. They were just easy going nice, fun people who happened to be millionaires. Those are the people that I do look up to and admire because they know how to manage their money and I find it very encouraging.
@TacklingOurDebt You’re right, that IS probably why people think money is bad. There are many who are wealthy who think they are leagues above everyone else.
I really liked this article David. In my opinion, ambition is a good thing. :)
@ayoungpro I agree, ambition is definitely a good thing.
Great post, DC. Money gets a bad rap. It’s bad. It’s good. Blah, blah, blah. :) People pursue money for many poor reasons, but money itself isn’t bad. Too many people see it as a status symbol and something they use to lord over everyone and validate their existence (pretty much any reality show with the words Housewives or Keeping Up).
My dad always told me money was gift to create joy for myself and others as long as I made money decisions that aligned with my values and goals. It is a gift. I work very hard to earn money and then make smart choices regarding how I use it,so I not only have financial freedom and security but can also share my money with others too. I think many people believe money is bad because they overheard parents grumbling about others who had more than they did and didn’t deserve it. So many emotions tangled up in money. Glad you brought this issue to the forefront.
I think it boils down to the reason why you want the money. If it’s to purchase crap you don’t need and be greedy, then perhaps it could be seen as evil.
However, if you’re giving to a noble cause, or trying to provide your family with security and freedom. Well then, that seems like a good reason to me.
BTW, why do people who think that money is evil work at all? Wouldn’t they in turn be contributing to the evil? Obviously they need to for food and stuff, but still.
I think wanting more money is a great thing. The more money you have the more you can bless others. Poor (financially speaking) people can’t donate large sums to hospitals and charities, nor can they help out their friends and family when they’re going through a hard financial time. So with that mindset, do I want more money, absolutely!
I always find humor at the people who say things like money being the root of all and evil and such. I agree with you and do not think money is bad at all. Money is a vessel that allows us to do the things we want to do. Money just needs to be put in the hands of good people.
I think when people get more money, it shows their true colors. Either they are real awesome people and crazy philanthropist or they are people who are selfish and greedy, but either way money shows their colors. I think the talk of people saying money is bad is poor person talk. They say those types of things to make themselves feel better if they settle for mediocrity in life and dont strive to be rich.
More money is a good thing, but you first need to define what “more” is. I did, and I busted my but and retired at 46. I could have kept working for “more” money, but I determined what I needed and wanted for the rest of my life and even conservative calculations had me at “enough” and now I can do almost anything I want, or not do anything at all.