“Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver.” —Ayn Rand

Ever wondered why some people seem to have it all, and then they lose it in a flash? I’ve often wondered about this. This even became more apparent to me when I moved from my home country where money was relatively less fluid than the US at the time. The experience of owning a debit card with access to all the money my parents had saved for my college costs for the year at my fingertips just waiting to be swiped left me heady and with the awareness of how fast money could be gone at slightest whim. Thinking about it; between getting a very basic car, taking a nice trip or impulse shopping, $16,000 (which was  one year of tuition costs) was hardly a feat to spend in one day. 

Stories abound in the media of famous people who were really wealthy and suddenly were at the brink of bankruptcy. Looking around, we’ve all seen situations with friends and loved ones or even ourselves where one unforeseen event jolted us rudely from our illusion of a comfortable life. In the same vein, there are people I think of as “teflon rich”. Those who have been wealthy  for as long as we’ve known them, and grow even wealthier as life appears seemingly tougher to the rest of us; leaving unimaginable wealth for the people and things they care about. They make bold moves in their lives and seem to come out on top while everyone else can’t say (much less do) what they really want for the fear of being out of a pay check even for 2 months. What makes the Teflon rich  different ? I think of it as the difference between enslaved and truly being free.

I believe that being wealthy is not a function of how much you make but is really determined by how much you desire a fulfilling life and your attitude towards money. Wealth isn’t necessarily about being rich; it’s about being anchored, secured and equipped so you can live a full, vibrant and fulfilling life regardless of life’s inevitable surprises. In my years of “wondering” these three empowering habits below have remained fool-proof litmus tests, determining the difference between someone who is bound by money and someone who is in control of their finances, life, and legacy. 

Saving not spending: Have you ever felt like your paycheck was not enough to spend, let alone to save? I have always felt like that, until I had to live with significantly less than I make now. For a full year, I had to go back to school fulltime – and this time I didn’t have my parents to pay my way. I had a scholarship, but I still had to pay rent, feed and other living expenses. I had to cut back from my fulltime job to focus on school and ended up with exactly 35% of my paycheck from the prior year. Somehow, I managed to survive- paying the same rent and surviving. The real thing that suffered was my whims and” lifestyle choices”- At the end of that year, I realized I have never had a revenue problem, but what I had and remain susceptible to is a spending problem. Once I realized that a lot of my needs were really wants disguised, saving became more attainable. 

So what does saving do for you; as painful as it seems it equips you and teaches you discipline. You learn to set your priorities right and let’s face it stay out of trouble- making better choices. If I know I can’t spend $20 on drinks tonight, I won’t be at happy hour just because someone says “lets go”. I’d probably find something more productive to do with the time. Imagine if you had one year cushion in savings, how would your life look like right now? Would you stay at that job you hate? Will your brows form beads of sweat as much when the press talks about the global economic downturn or your employer talks about cuts? Wouldn’t you say what you really feel and follow your true passion if you didn’t need your paycheck for your next student loan payment? That’s empowerment that comes from saving.
Investing not consuming: Money is described in the bible as the answer to all things. Does your money answer to your needs or does it heighten your anxiety? Is It really a tool answering to you and yours? Or is it a slave driver; keeping you awake all night yet driving you out of your bed at dawn lest you risk the roof over your head? Sometimes, I am plagued with the need to splurge on a shopping spree, or on a long deserved vacation… I tell myself “after all I have worked hard for it”. Then I stop to think, how much of the money I make ultimately puts me in a better position before I made it? How much of my earnings really works for me and makes me a better, stronger person? Investing doesn’t only refer to stocks and 401k- do you invest in yourself, your development of a skill, ideas, and other people?

Investing empowers, builds integrity, and gives purpose. It gives a framework and platform for life’s goals. And if you don’t have any goals, it gives a reason to create one. The next time you want to buy that fancy car, think to yourself…would I feel more accomplished at 80 when I’m described as the lady with the fancy car or as someone who contributed to the next invention of our generation. You don’t need a lot to invest, start small…..$10 here, $200 dollars there,  french class here, a professional conference or a seed investment there. Just watch it all add up.

Giving not Hoarding– This is probably the most difficult to articulate. The phrase “its better to give than receive” has to be the phoniest cheesiest line I’ve ever heard. Even a 2 year old knows that two popsicles is always better than one. So why give any?  The cool thing about giving is that it helps put life and money in the right context.  When you open heart to giving, you also open your eyes to seeing that there’s so much in life that’s more valuable than money or things. Giving liberates, humbles and gives a sense of fulfillment and it is no coincidence that the wealthiest men in the world are also great givers. 

The first thing giving does for me is it liberates. I’m no longer bound because when you hold on to something tenaciously, you can’t bear to lose it… but when you give it freely, it no longer has a hold over you. Giving makes me constantly aware that there are people around who need my money and time more than I do, creating the awareness that I’m merely a conduit for making the world a better place. It opens my eyes to the fact that there are people just as capable as I am that a far less privileged. Giving lends credence to purpose; there is no greater joy than giving a dollar that makes a difference in a life, to a cause or to the world. Mark Zuckerberg gave $25 million in 2014 to fight the Ebola virus in Africa, can you imagine how fufilling that must have felt?
So that’s it, the three simple but empowering habits that make a difference. Nothing earth shattering, ground breaking… but life’s real treasures are really the simple things. The habits are in this order for a reason; I really believe each is a prerequisite for the next. You can’t invest if you don’t feel secure, and you can’t really make a difference if you don’t empower yourself first. 

I don’t want you to read this, nod and continue with the status quo. Stop and ponder on where you are in your personal journey towards being truly free.