Many in society see money as the solution to most if not all of its problems. This is quite understandable when we look at the levels of unemployed or unemployable in the society. It is still reasonable when we examine the amount of “working poor” (people who work but do not earn enough to meet their basic needs) in society. It becomes more difficult to accept when employed people with high salaries (twice or three time their basic needs) have low or no savings or net worth. It is impossible, to comprehend when there are people with high net worth who are simply not happy.Some people did not benefit from the education system as designed and have been classified as unemployable. There can be many reasons for this, the chief being undiagnosed health problems. Yet, a caring society will have invested money in programs and projects to assist in diagnosing and treating such late bloomers. Hence, money and successfully implemented programs and projects can further reduce the levels of unemployed or unemployable in the society.
An inadequate minimum wage adds fuel to the importance placed on money by many in society. Imagine working full days or weeks and not be able to adequately house, feed and clothe your family. This is the plight of the working poor, a group of minimum wage earners that come into being when the nation’s minimum hourly wage rate does not increase along with increases in the prices of basic living expenses. A living wage which is constantly adjusted for inflation can help reduce this grouping and even help reduce crime.
Demystifying money, money is a simple tool used to track the exchange of goods and services and to measure the type of exchanges (purchase of assets or consumables). The unemployed and minimum wage earners often think that people with luxurious cars, expensive clothes and the latest cell phones (badges of honor) are rich, never asking how much do these people owe. Working for a lot of money can make you rich, depending on what you do with that money. If you can pay for basic needs, afford luxury expenses and still save at least one-third of your take home pay, you are rich. However, if after your basic needs are met, all that remains from your salary is to repay loans on luxury expenses and there is nothing left to save, you are not going to be rich. But while money is not the real problem, the solution is for you to review your lifestyle and priorities.
People who save before indulging in luxury expenses become wealthy. This wealth occurs when you transfer savings into income generating “A1” assets. Your home, for example, is a less than “A1” assets, valued at current market price less the amount of principal and interest unpaid on its mortgage, which also incurs maintenance expenses but does not generate any income to you. However, if you started renting out rooms, the rental income makes that same house an “A1” asset. Wealthy people have forgone luxury expenses or made other sacrifices to invest their savings into business, one such business model is commercial property rentals, on whose profits they can now afford luxuries. But do not be fooled, no amount of money can make you happy, noting that health and security issues are still surrounding you.
Happiness, thou difficult to define, can only occur for many, when the unemployable and the working poor are eliminated and we all become financially literate destined to save and invest for a more secure future.
Rationale
T.A.J & Associates Company Limited uses this occasion to comment on topics that have been covered, both academically and by the mainstream media, to add its opinion and point out investment opportunity, not to invoke any social action.
