As a child my parents taught me almost nothing at all about money. (Other than earn and save it.) Despite the fact that my father was a successful tool and die maker, an inventor, and had owned and sold his business (at a nice profit) I nevertheless received a very scant education in money matters.
I remember many times, seeing my parents doing their taxes and asking them, “teach me about taxes, teach me about money, and how this works.”
They always basically told me, “You’re a child, you don’t need to worry about this right now, you’ll learn about this when you grow up – on your own.”
I guess that was simply the Weltanschauung of their generation and age. It is, however, not mine.
Because of that when I entered college, and for the rest of my life, I have been learning about business, capital, Capitalism, economics, finance, investment, money, and all other related money-matters. Money is a big part of my Personal-Education Plan (PEP Program), and my self developed IEA (Individual Education Account).
When I first got married I realized pretty quickly that my wife had no idea about money, how it operated, or why it worked as it did. She, likewise, had little to no real education on money matters from her parents either.
Determined not to let financial ignorance and bad money management work against her, me, our marriage, or in the lives of my children I have developed Economic and Monetary Educational Materials to use for their instructional benefit. Since I homeschooled my children for their entire primary educational period (pre-college) I made sure to incorporate both basic and advanced course materials on budgeting, business, Capitalism, career, economics, entrepreneurship, finances, investment, profit, etc. I also make sure they practice what they learn. Both are far better at money matters than I was at their age.
I am to the point now that regardless of what happens to me I feel confident that they are in possession of enough useful materials, and have been trained and habituated in such a way as to assure they will be successful in their own businesses, careers, and with money.
Below you will find a very basic summary of the most fundamental things I have taught them concerning money. They are well advanced beyond these simple ideas, but, in starting any venture it is always necessary to begin with the fundamentals. Often, over the course of time, it is necessary to return to the fundamentals as well.
Beneath the section on Money and Power 101 is a short document I developed regarding the Hoards I believe each person should develop over their lifetimes and how to employ and use these Hoards.
This “List of Hoards” is hardly exhaustive, but it does include most of the Hoards I consider most basic, except for the Word Hoard. Which technically could be a part of your Charisma Hoard, but really I consider a person’s language, linguistic, and vocabulary (Word) hoards to be an entirely separate set of treasures.
I offer these posts in the hopes that they may assist you, especially if you are just starting out in the world, to master your own Money and to develop the Hoards that you will find most useful.
I do not insist you necessarily agree with my definitions, but I do urge you to make your own studies of Money and the Power it engenders, I do urge you to master Money (rather than be mastered by it, wither as a poverty-stricken person or as a wealthy person), and I do urge you to develop and grow your own Hoards.
You will thank yourself for such efforts later on in life, and very likely the world will thank you for having made such efforts.
Comments are welcome.
MONEY AND POWER 101
MONEY is the financial power to do as you need and wish in the world. The more money your have the more power you have, the less money you have the less power you have.
SURPLUS is the amount of anything you have in excess to your actual or current needs. Your surplus should always be as great as possible of imperishable items.
PROFIT is the amount of money earned or generated in excess of expenditures.
INSURANCE is a money pool set aside for emergencies. If possible it is best to self-insure.
TAXES are the amount of money lost or exhausted to an individual by being seized by the government.
EARNINGS are the amount of money you generate for yourself through various actions of Work. Earnings are divided into three separate subcategories.
Income is the total amount of earnings one generates through all earnings sources. Originally it was that income (come-in) generated by investments.
Investments is the amount of earnings generated by whatever vehicles one is invested (vested) in. Investments are earnings or income vehicles generated by Risk.
Salaries or Wages is the amount of earnings generated by working for or laboring for others paid in the form of salary or wages. (Time or Work for money.)
SAVINGS – the amount of money already earned but not invested or spent but retained for long term goals or for emergencies.
EXPENDITURES – all monies spent to buy or pay for non-income producing items or services
Bills and Living Expenses – those monies paid to creditors or service providers for goods and services purchased. Bills and Living Expenses are monies lost to others.
Necessities – those monies expended for all goods and services of a necessary nature: food, shelter, power, necessary maintenance, etc.
Emergencies – those monies expended for emergencies and immediately unforeseen expenses, such as medical bills and repairs.
Entertainment – those mines expended for entertainment, recreation, etc.
GIVING – all monies given to the care and well-being of others to service their needs, also any resources given to others for their support.
Charity – giving to Church and/or Charitable causes with the intention of supporting the long term needs of an individual or an organization.
Philanthropy – giving to humane and other causes with the intent of addressing or solving specific needs or problems or projects. For instance one might found or support a philanthropic enterprise to support literacy, to build a hospital, to fund a scholarship, etc.
PREPARATION – always keep your money growing, in motion, invested, and in use for worthwhile things. Always plan as far ahead as possible regarding expenditures to be made. Always have accurate and complete information about all aspect s of your money and how it will be used.
RISK – all enterprises require risk. Risk is the amount of danger required to service a worthwhile enterprise or investment relative to the potential reward or Return on Investment (ROI) the enterprise or investment will generate (in the case of business, financial, and monetary activity). Generally speaking the higher the risk the greater the return or reward, and the lower the risk the lower the return or reward. However measures should always be taken to favorably mitigate risk as much as possible.
REWARD – is the amount of gain generated by the successful conclusion or progress of a worthwhile Risk. Another term that is synonymous with reward in financial and monetary matters is Return on Investment, which is a measure of gain generated by risk relative to the danger of initial loss of the initial loss of the investment.
MONEY – having more than enough money needed to meet all of your needs and the needs of others should make you happy. Making money should make you happy, and having a large surplus of money should be associated with pleasant thoughts and feelings and with security. Money is a personal, physical, financial, economic, psychological, social, and spiritual force, or power, and should be treated and employed as such. Money should not master a man, either by having too little, or by being consumed and over-powered by it. Money is a servant, not a Lord.
CAPITALISM – is that form of economic activity, or that system of economics, that seeks to build and generate Capital Pools, or reserves of money, that can thereafter be employed to build businesses, funneled into investments, grow and expand enterprises, etc. and thereby generate even more Capital and ever larger reserves of Profits. Capitalism depends on the fact that money is constantly invested and employed and that new ventures and enterprises are continually started and grown so as to continually create New Wealth. Capitalism also depends heavily upon Free and Unfettered Markets.
Always make ongoing use of and constantly develop your hoards for an unused hoard is useless and an undeveloped hoard has no value.
ABILITY HOARD – every ability, capability, skill, and talent that a person possesses and develops in life
ACHIEVEMENT HOARD – every good and worthwhile achievement or enterprise that a person ever accomplishes
CHARISMA HOARD – all beneficial influence and powers of persuasion an individual possesses to sway others to participate in worthwhile endeavors
CHARITY AND PHILANTHROPY HOARD – all charitable and philanthropic works that one engages in to assist others
CREATION AND WORK HOARD – everything of value that a person creates, and all of the valuable Work that one ever does over the course of life.
ESTATE AND LAND HOARD – all estates, lands, and real properties that one owns or controls
INVESTMENT HOARD – all good and profitable investments that a person is engaged in or is participating in
RELATIONSHIP HOARD – all beneficial relationships which an individual may rely upon for advancement, comfort, friendship, and support
TREASURE HOARD – all objects, things, or possessions that are of economic, monetary, and physical value
VIRTUE HOARD – all of the Virtues that a person possesses and can command within his person
BLESSINGS, HEIRLOOMS, LEGACIES, AND INHERITANCE – all of the blessings, heirlooms, legacies, and inheritances passed down by one individual or one generation to another