9. Use Money as a Tool
Money is meant to be in motion. It should circulate to other people and back to you again. The only value that comes from saving it is that you’re storing it for later use. It doesn’t help to be miserly and hoard it up out of fear, though. However, it doesn’t help to splurge it unnecessarily and create debt, either.
You shouldn’t see money positively or negatively. It’s just a tool, so you should look at it logically without allowing emotions to get in your way. Like most people, you’ve probably grown up with the idea that saving money is good and spending is bad. Instead of thinking about saving or spending, rather think about using it.
Perhaps you’ve decided to go on a family vacation. You have the money, the trip fits into your plans, and you need some quality family time. But you should not feel guilty about spending money. It’s not the money that matters, but the outcome. Why should you feel bad when you use the money to make something worthwhile happen? You will create some memories that will last a lifetime.
People give more power to money than it deserves and allow it to control them. So, thinking of it as a tool changes your relationship with it. As you do with your tools, you need to take care of your money. Be sure to keep it organized and ready to use in a way that builds your net worth.
