As an author on Money, people like to talk to me regarding this ‘$ubject’. Some people ask me how to have more of money, some asked me why have I choose the path to evil since money is the root of it. Different people have different perspective of money.
Not too long ago, I was talking to a person who was close to me and was trying to convince him how important it is to manage our money well and to invest part of our money. Our debates were heated and I cornered his every argument. As I was more well read and had actively practiced what I learn about Money, I could win the argument, but I just could make him “see the light”. He agreed with my logic, but i sensed that deep inside, he just wanted to brush me off and stop talking about the topic.
He reminded me of children at times. It is so difficult to explain logic to children because they just couldn’t see what we can see as adults. I remember when i was young, my mum used to say
“Don’t watch too much TV, you will spoil your eyes and become short sighted.”
Wow! What a wise advise. And it makes total sense… to a adult. Logically speaking, whenever my mum say this, I should rush over and give her a hug of gratitude, saying, “Thank you so much for warning me mummy! I love you!” But is that what I did? Well, you might have guessed that I was an angry young boy whenever my mum nagged and I continued to glue my eyes on the TV set. What immaturity. It is no surprise that I am wearing glasses now…
I was thinking through and wonder what is it that makes a person mature? I came up with a thinking that it has got to do with how “far” we can see into the future.
Just like the event of me watching TV. In this event, my mum considers a longer time frame than myself. She is probably looking at a 5 to 10 years time frame where I will have to bear the consequences by getting poor eyesight. But for me, I am only considering a 30min time frame when I want to finish the TV programme. In this case, my mum is obviously more mature than me.
Another example was the time I was in Secondary School and my mum nagged at me to study hard because this affects “my future”. She could see how my actions will affect my future. But for me, I couldn’t care less… Missing a soccer session with my friends today will be the end of the world for me. What immaturity!
Now in terms of Finances, I have met many Financial Babies. All they can think of is “today”. They make financial decisions based on “NOW!”
“Buy NOW while stock last!” “The discount is only TODAY!”
Don’t get me wrong, I love to purchase things when they are on a bargain, but I do not jump at every single one of them. And of course, before I purchase anything, I look at the longer time horizon and ask myself if I really need it and if I could afford it.
Again, these financial babies can never see how they determine their destiny with the next $1 spent.
Before I proceed further, I want to add that there are some people who are mature in thoughts, but are like babies in behaviors. An example is my friend Dan. He KNOWS logically that over eating is going to make his body look like a balloon, and he does not want THAT to happen. But guess what Dan looks like today? Yes a balloon, all because he had mature thoughts, but immature behaviors.
So I have also met many people who read Rich Dad Poor Dad by Robert Kiyosaki, Multiple Streams of Income by Robert G Allen and even Winning the Money Game by… ahem, ME! In their heads, they KNOW what to do, BUT, (when there is a but, it is usually a one), they don’t do it!!!!
So really, how far can you see with regard to your finances? And how does your action correspond to your vision? Lets take your last paycheck as a reference. How did you use you paycheck?
Financial Adults will take the first 10% to save and invest. They will use the 10% to buy assets (things that grow in value and produces income). These group will eventually become very wealthy.
Financial Young Adults would pay their bills and save the remaining. These group are responsible people and they will not get into much financial trouble as long as things remain stable.
Financial Teenagers would spend whatever they make and wait eagerly for the next paycheck.
Now, lets talk about Financial Babies… These group spend MORE than they earn. They overspend on their credit cards and couldn’t pay on time. Then they will find “creative” ways to cover the credit card debt by borrowing from somewhere else….
For each group, their financial decision is based on how far they can see the consequences of their decisions. For Financial Babies, the could see past the latest offer or whatever item that is dangling in front of them. They can justify their actions with good arguments, but their actions reveal how immature they are.
Regardless of which group you are in, you can and should grow.
The question is: Are you ready to grow?
