What is money? Paper and coins are meaningless except for the value that we agree to place on them. Beyond physical money is an intricate system of value, trust, and relationships. There is an inherent positive force for good based on fairness and integrity and balance. It’s the creative energy that builds businesses, gives gifts, and circulates abundance. Money, as an expression of this bountiful energy is auspicious!
We can witness the flow of money energy in what I call our 5 Money Powers
As we bring intrinsic value to the world and that value flows back to us as our income. We transform our earnings into sustenance for our bodies, our shelter, providing for our loved ones. We choose to create other cycles of energy as we spend, save, give, or invest.
1. Earning – Earning is your number one money power, and it increases over time as you add knowledge, experience, and connections. We provide value to the world and in exchange we receive income. Disfunction in this part of the system is discounting your worth and under-earning.
2. Spending – Infuse your spending with your values. Every dollar is a vote. Whether that’s making the healthiest choices at the supermarket for you and your family, buying handmade, fair trade, from local small businesses, supporting artists, prioritizing your children’s education, or whatever choices align with your vision. Let money flow according to your values. Disfunction in this part of the system is overspending or being too frugal.
3. Saving – Saving is the power that provides for your future self and protects you from the unknown. Saving for the future requires that we take a long-term view and consider that we will not always be able to work and earn income. The secret to saving is to pay yourself first and make it automatic. I recommend you keep a few months’ worth of basic living expenses in an emergency cash reserve. Disfunction in this part of the system is when the miracle of compound interest works against you in the form of high interest rate consumer debt. Not all debt is bad debt. Your student loans, property mortgage and business loans leverage your intelligence, income, and ingenuity into appreciating assets and typically have lower interest rates. Consumer debt on the other hand, is often used to increase your lifestyle with goods and services that depreciate and does not increase your assets.
4. Giving – The beautiful thing about giving is that it affects the giver, the receiver, and the community. The magic of generosity is that it’s abundance in action. It’s impossible to feel lack when you’ve found the energy to give. Give consciously and be engaged in the causes you care about. There are countless studies that show giving makes you feel good, especially when you’re engaged. The act of giving makes you happy. So, if it’s financial well-being we’re after, giving is a fundamental component.
5. Investing – Investing is the power to participate in global financial markets to grow your money over time. Ultimately, why do you invest? As you’re probably acutely aware of right now, the cost of things goes up over time. The buying power you have today will be eroded by inflation year over year. So, you invest to outpace inflation. Disfunction in this area of the system is greedy destruction of natural resources with money as an end in itself. Like with spending, you can infuse investing with your values. You can choose to invest in alignment with your values, for example choosing environmentally friendly and socially responsible companies.Your financial choices have meaning and impact, not only for your well-being and the well-being of those closest to you but can have far reaching effects. How are you doing in the realm of each of your five money powers? In which areas are you strong? In which areas would you like to improve?