That's the question I asked to a very successful friend and colleague:
"What percentage of people do you think use money well?"
He asks back, "What do you mean by 'use money well'?"
I think. "However you define it."
"Okay... point oh one percent."
I think. "Point oh one percent?"
I continue. "Okay. So, one out of every ten thousand men?"
I continue. "That's not a lot... I might have said five percent - one man in twenty. Or maybe one in a hundred... but one in ten thousand... that's... rather... low?"
The conversation drifted elsewhere. Later in the evening, I ask, "You say only one men in ten thousand use money well... what is using money well?"
He says, "If I gave you one hundred dollars, what would you do with it?"
I think for a moment.
He says, "If you use money well, as soon as you get a hundred dollars, you make a realistic plan to turn it into one thousand dollars, starting the next day."
I think. "Okay... and most men don't do that?"
"No, they don't. Maybe one in ten thousand does."
It's less about turning $1000 from that initial sum, and more of immediately using the hundred as an opportunity to PRODUCE, MULTIPLY, or EXPAND--as opposed to immediately using the money to CONSUME.
That's the lesson here.
Which mindset are you from? The one of the consumer, or the one of the producer (a.k.a. One who moves resources from a low yield area to a higher yield area)?
"(...) you make a realistic plan to turn it into one thousand dollars..
Can you, or he, give an example of such a plan? Assuming that your time is worth $XX per hour.
I can't help but think this is an overly simplistic way of looking at things. What if I'm currently $100 away form being debt-free? I would immediately spend it on that. What if I already have enough money for myself, and decide to turn around and give this new $100 to my favorite charity?
Also, a nitpick: it's hard to mentally parse this passage, because three different figures are given:
“Okay… point oh one percent.”
I think. “Point oh one percent?”
I continue. “Okay. So, one out of every ten thousand men?”
Do you mean 0.01%, .001%, or .0001%?
Culturall differencies will have a huge impact on this subject. I think most people want to use their money wisely, it's just a matter of your culture and how you were raised as a child. Are humans some lazy asses? That depends on your definition on what laziness is. If we take Jessica Simpson as an example, she spends à lot of money, but she works hard for them at the same time. Jessica was brought up to be an extremely spoiled woman. Her parents treated her as a princess. She is à very good hearted woman. Another example is à chinese man. This man works very hard and saves every penny. He was one of richest chinese in Sweden. Then he dies in à heart attac at the age of 60. If money is the root of all evil, then we should use it very wisely.
Very good question. Here we go -
I saw your post offering advice help, so I thought I'd take you up on that. I'm young, pre college, so time is on my side. I'd like to create a web startup at some point in the future, at least that's the dream. Should I focus on homing in on my technical skills, or business skills? Right now, I know much less of the latter, but I recognize its importance in entrepreneurship.
Also, do you think college credentials are as important as real world opportunities? And any reading recommendations would be much obliged. I'd love to hear your thoughts.
Thanks so much,
I slept most of the flight from San Francisco to Vancouver. I was up until one thirty in the morning the night before, and had to wake up at five in order to get to the airport on time, so I was exhausted. Upon arriving in Vancouver I shuffled half-asleep to the customs station, which I had to go through even though I was only connecting through Vancouver, not stopping there.
The agent asks my name, where I'm going, all the usual stuff. I reply, giving short answers. I always give short answers in customs because first, I'm sort of offended at how they treat you as though you're some kind of criminal, and two, because I figure the agent just wants to hear a succint answer and get on with her day.
"Where are your other bags?"
"I don't have any."