Getting More Money Is Never A Solution

@porwest (78726)
United States
May 25, 2020 12:45pm CST
I just wanted to touch on a quick point about money. This is for all of those who think that just giving people money, or giving people more money solves the problem of not having money. Raising the minimum wage to $15 an hour for example. Is this going to help anyone? It might a little. But ultimately it will not. Why? It is quite simple. Having money is NEVER an earning problem. It is always a spending problem. And being broke is normally NOT a result of not having enough money or not MAKING enough money. It is almost always about not having KNOWLEDGE about money. Case in point. How many times do you hear about athletes who make millions of dollars who become broke? Or what about certain musicians that lose all their money? Or how about the hundreds upon hundreds of stories of people who win millions and sometimes hundreds of millions of dollars in the lottery who lose it all and wind up once again... FLAT BROKE. The bottom line is this. If you give a fool more money, that fool will not have more money and will not become rich. But no matter how much money you give to someone who is smart about money, THEY can become rich because they KNOW how to do it. They know how to manage money, they invest and save, they start businesses, and they know how to KEEP their money. Getting more money, or GIVING someone more money does not solve the money problem for someone. It only PROLONGS the inevitable.
17 people like this
16 responses
@just4him (303392)
• Green Bay, Wisconsin
25 May 20
A fool and their money are soon parted. I try to be wise with the little I have.
7 people like this
@just4him (303392)
• Green Bay, Wisconsin
27 May 20
@porwest I think Solomon said it.
2 people like this
@porwest (78726)
• United States
3 Jun 20
@just4him I think you are right.
2 people like this
@porwest (78726)
• United States
26 May 20
That saying is one of those sayings that forever holds true.
3 people like this
@amadeo (111956)
• United States
25 May 20
one thing I do not worry about .I believe I manage my money well. yes a lot of them do not how to handle this.
4 people like this
@amadeo (111956)
• United States
26 May 20
@porwest yes it is.But they never learn
3 people like this
@porwest (78726)
• United States
3 Jun 20
@amadeo Unfortunately many do not.
1 person likes this
@porwest (78726)
• United States
26 May 20
I see so many people who live by the credit card, and to me that is a very dangerous way to go about it.
1 person likes this
@moffittjc (118221)
• Gainesville, Florida
27 May 20
A wonderful piece of advice I was given a long time ago was this: your level of spending ALWAYS rises to your level of income. How many people have you heard say, "If I could only get a raise," or "a bonus would really help right now," or "if I could just win $10,000 in the lottery" I can fix my financial problems. Wrong. You'll just spend more and end up right back in the same situation. It's like you said, most people have a spending problem. Take the recent stimulus check for example. How many people spent that money on necessities, such as food, mortgage, bills, etc. versus how many people spent it on wants, such as big-screen tvs's, fancy exercise equipment, etc.
2 people like this
@moffittjc (118221)
• Gainesville, Florida
26 Aug 20
@porwest You make a good point. I read my social security statement very closely every year when I get it. When I start collecting, there will be no surprises. I guess people are just stupid and don't pay attention to those statements. Either that, or they have no clue how much they are actually spending on a monthly basis and how much it's going to cost them to live in retirement.
1 person likes this
@porwest (78726)
• United States
30 Aug 20
@moffittjc That is definitely part of it. But I also think most people simply do not plan ahead. They kind of take the stance, "I will cross that bridge when I get to it," and then they get to it and they're like, "crap." Unfortunately at that point they blame the system and the rich instead of placing the blame where it belongs... On themselves.
1 person likes this
@porwest (78726)
• United States
25 Aug 20
You hit the nail square on the head. More money to people who invest and save wisely is helpful. More money to people who simply spend it all only prolongs the inevitable. It's a bit off the topic, but still applies a bit. I think of how many people get to their social security years and begin to complain, "I can't live on this pittance." My God people. Every year you get a statement from Social Security telling you EXACTLY how much you will get. If one did not think that would not be enough, why did they not save more? Besides the fact that Social Security was NEVER intended to be enough to live on. It was ALWAYS intended to be a supplement to pensions, savings and investments, and other things.
1 person likes this
@NJChicaa (115621)
• United States
25 May 20
I don't see how someone making minimum wage is supposed to afford rent/mortgage, utilities, insurance, groceries, etc. especially here in New Jersey. I pay $1245/month in rent for a 2 bedroom apartment (not including utilities) and I make over $70k a year. A single mom working at McDonalds or Wawa couldn't afford that. A single person alone couldn't afford that.
3 people like this
@porwest (78726)
• United States
26 May 20
I still don't see how so many people still believe that a minimum wage job is a career. I think people need to strive to achieve more if they want more and need more. Not expect that everyone else will make up the difference for them when they choose a path that does not fully support their needs.
@LindaOHio (153180)
• United States
25 May 20
Give me some money. I'll show you how I can sock it away! :-)
4 people like this
@porwest (78726)
• United States
26 May 20
Same here. lol
1 person likes this
@FayeHazel (40250)
• United States
7 Jun 20
I tend to agree. Raising the minimum wage is fairly pointless unless food, items, and bills stay the same or similar. But I fear in order to recoup paying people higher wages - that places would just jack up the prices of ... whatever, food or goods...
1 person likes this
@FayeHazel (40250)
• United States
12 Jun 20
@porwest What percentage of people do you think spend vs. save? I always thought it was 50/50. I seem to be an annoying mix of both. If I get a big amount ahead I pay up any credit card debt if applicable, and then I maybe maybe an item or 2 that I want and save the rest. If it is small amounts, it all depends on what my will power is.
1 person likes this
@porwest (78726)
• United States
11 Jun 20
But even if the prices of things stayed the same, most people would just buy more things, and so the extra money would simply go away. If the extra money was used to save and invest MAYBE that would help someone. Most people spend every penny they ever get and then spend money they don't have via a credit card. It's a vicious cycle. Give me $20 and I will likely put it in the bank. Give someone else $20 and they go woo-hoo and go buy something. lol
1 person likes this
@porwest (78726)
• United States
8 Aug 20
@FayeHazel I think the figure is way more than 50/50. Most people do not save. Most people spend. What separates the haves from the have nots is really about how much people know about money. Most people are "money stupid." It is unfortunate for those who spend, but VERY lucrative for guys like me who invest in "wasted money." Do you know how many people will buy an app and PAY for lives? I can make a ton of money on people who have nothing who spend money on..."nothing." I regret nothing. lol Unfortunately, stupidity is VERY profitable.
1 person likes this
@marguicha (214294)
• Chile
25 May 20
Although I do agree that giving money to a fool will not solve his problem, I do think that being more smart will not always make him rich. To start a business you don´t need some money, you need money and then some.
1 person likes this
@porwest (78726)
• United States
25 May 20
Actually, most successful businesses are often started with very little personal investment. Businessmen are basically great idea makers. They have an idea, they draw up a business plan, and then they go to other people who have money to invest and say, "I have this great idea for a product, service, etc. Do you want in on it?" Money is made when one CREATES it through a plan, an idea, and takes action to create it. Most people think of money in terms of simply getting by. I will go and get a job and I can pay my bills. That's where the line ends for them. When they run out of money, or create a lifestyle that demands more money, most of the time they will not CREATE more money. They will FIND money. That usually comes to them in the form of credit cards and other types of loans. Eventually these people wind up in a vicious cycle of work, and pay bills, and overextend to keep up, and at that point they find they not only do not have the ability to save or invest anything or invest IN something to CREATE money, they are in a hole that simply becomes maintained. EVEN IF they find a better job and make a little more money, it is all eaten up by the fact that they are still in the hole and just trying to get out of it.
1 person likes this
@marguicha (214294)
• Chile
25 May 20
@porwest It is a pity that I´m not a good saleswoman The only thing I can sell is a good book to read
1 person likes this
@porwest (78726)
• United States
26 May 20
@marguicha Hey. That's still something. lol
1 person likes this
@hereandthere (45671)
• Philippines
26 May 20
i think it's hard to start earning well and not want to improve your environment and those of your loved ones.
1 person likes this
@porwest (78726)
• United States
17 Aug 20
To hell with improving their environment. If they want to know how to improve theirs, they can ask me how I improved mine. It's not rocket science. lol
@jstory07 (133801)
• Roseburg, Oregon
7 Aug 20
I always had a budget set with my money. I saved for retirement so I would have money when I retired. We still have a budget and have money to do fun things.
1 person likes this
@porwest (78726)
• United States
8 Aug 20
For me that's the whole key. Save to have fun with the proceeds. When money makes money, that's really the best way to get it.
@JudyEv (323748)
• Rockingham, Australia
26 May 20
Good points and very true.
1 person likes this
@porwest (78726)
• United States
26 May 20
Thanks. Much appreciated.
1 person likes this
@thelme55 (76376)
• Germany
25 May 20
I agree with you. It is the spending habit that keeps the money gone as fast as it could.
1 person likes this
@porwest (78726)
• United States
3 Jun 20
How one spends really is an important factor in determining what one can save. And so many people fail to realize that money MAKES money, so the more they save and invest, the more INTEREST and dividends they get, which not only expands the value of the earned dollars but increases their overall wealth.
1 person likes this
@dgobucks226 (34202)
6 Jun 20
Wise words. Amazing how some athletes who make millions spend it all away. Greed is a powerful motivator and a ruin of many... I think this quote sums up my feelings about greed.
1 person likes this
@dgobucks226 (34202)
6 Jun 20
@porwest I see your viewpoint I think the search for an easy way to earn income fools many athletes and other people to make rash business decisions without research. Always question those get rich schemes
1 person likes this
@porwest (78726)
• United States
6 Jun 20
I often define greed as simply wanting something for nothing. Most people with money are not greedy in my opinion. They work hard, they save and invest, the end result is they get more money. But even poor people can be greedy. Thus the definition I use for greed. When one wants free rent, free food, and whatever else they can get, to me that's greed just as much as a millionaire who wants to gouge his customers to get more.
1 person likes this
@DocAndersen (54413)
• United States
4 Jun 20
we do not do a good job always in education, money is an area that isn't often talked about.
1 person likes this
@porwest (78726)
• United States
15 Aug 20
@DocAndersen These are true statistics. It is why I always say giving people more money NEVER solves their money problems. Increase minimum wage. Fine. It does nothing to improve their lives. They just spend the money. Give people who pay no taxes $5000 checks at tax time. Does nothing to help them. Give someone food stamps. Does nothing to help them get away from using cash loans or improving their lives. EDUCATION about money is the BEST tool to solve money problems. Not more money. But so many people just don't get that.
1 person likes this
@porwest (78726)
• United States
8 Aug 20
Money and money management is an area NEVER talked about in schools. Part of the reason? The schools are all run by the left. And the left wants everyone to be poor so that they can control our lives in every aspect. If we KNOW how to manage our money, the left loses. So why bother teaching it? The left wants us to need government. It's all a ploy. It's all a scam. Only the SMART survive.
1 person likes this
@DocAndersen (54413)
• United States
9 Aug 20
@porwest i read a study that talked about the following. More than 1/2 of NBA players are broke two years after they leave the league. More than 70% of lottery winners end up broke. money management is critical.
1 person likes this
@Nakitakona (56322)
• Philippines
29 May 20
Those who got broke after having a huge amount of money don't value the importance of working for it. Those people we call them, one day millionaire.
1 person likes this
@porwest (78726)
• United States
3 Jun 20
AND they simply do not know how to CREATE money, which is one big difference. If I have a million dollars and invest it, I can earn $60,000 to $100,000 a year off of it. If I only spent the interest the million could virtually last forever.
1 person likes this
@porwest (78726)
• United States
6 Jun 20
@Nakitakona People do it all the time. It's part of the reason I used it as an example. It does not matter how much money you GIVE someone, if they don't know what they are doing with it, no amount of money you give someone will EVER truly change their life.
1 person likes this
@Nakitakona (56322)
• Philippines
6 Jun 20
@porwest I have once written about a person who a million in a lottery which squandered it for a less than a month.
1 person likes this
@askme123 (6150)
25 May 20
I don't agree with you fully In these times food is expensive, bills escalating when you give people money it will eventually finish. If they don't have a job to supplement it. They will need more money. Also we can be very smart but make foolish decisions and investment Look at a crisis like now even the rich are feeling the pinch from covid because they are not making any money from their businesses or investment.,They use to a particular lifestyle which they can no longer afford ,they have many dependents who they can no longer pay. Money doesnot last long in today's economy my friend it doesnot matter how smart you are.
1 person likes this
@porwest (78726)
• United States
26 May 20
Where that thinking goes wrong is you are falling into the same trap so many people do when they think about money. Money is not about MAKING it, per se. But rather CREATING it. That happens through saved and invested dollars. And again, there are MANY things we can do in the short term to reduce our spending. What it comes down to for me is really a very basic concept. If your current job does not pay enough to cover basic expenses, find a better job. If your lifestyle cannot be paid for from your wages, AND if your wages do not also allow for saving and investing, change your lifestyle. What I think is important for people to understand is the importance of what I call 'income replacement.' What that basically means is that over time one can create new money from money already earned through interest and dividends, and eventually that created money can serve one of two purposes. It can enhance one's ability to live a certain way when added to earned income through a job, OR it can allow one to no longer have the need for income earned from a job.
1 person likes this
@banksim (5196)
25 May 20
you are somewhat right
1 person likes this
@porwest (78726)
• United States
8 Aug 20
Tell me where I am wrong Otherwise this comment is a bit moot is it not?