This quote has been used for centuries in an attempt to vilify money. It is often times aimed at the people who have accumulated wealth or as a justification for being poor.

First of all, I believe most people are mis-reading or mis-interpreting this quote.

It is the LOVE of money that is the root of all evil, not money ITSELF. It is the attitude that is the problem. This speaks to values, not actually money.

Money is neither good, nor evil. It is just a means of exchange.

Where we tend to go wrong is when our values become misaligned. Let’s not blame money, money is an innocent bystander in all of this.

Capitalism is Neutral

Capitalism is just a system whereby people exchange something of value for something else of value. This system has been around for millennia, and is not likely to disappear anytime soon. So if we learn how capitalism works, we can thrive.

Capitalism is the best way I can think of to have a fair means of exchange between people for goods, services, and labour. Not everyone is equal. This is not a matter of rights, or liberties, nor is it a measure of your worth as a human being. It is a measure of your contribution to the world. If you contribute huge value, you should receive huge compensation in return. Not everyone is super ambitious, and that is OK, but if you are a super hard worker and are doing things that create huge value to many people you should get your fair share. If you take the risks that no one else is willing to take, you should be compensated. If you simply do a chore that no one else is willing to do, you should be compensated. A true meritocracy is the only way to go.

Everything that could be exchanged between human beings has a perceived value. There should be some means of exchange for the value you create in the world, and a method to measure this. Money is a great way to quantify value. A free market dictates that the value (price) of something is set by what people are willing to pay for it. Each person has their own perception of value, so the marketplace will differ depending on your value proposition. Sometimes, people’s perceptions of value are a little askew when it comes to what the true cost of something is, based on marketing or popularity. I have mentioned this before (here) that is seems ridiculous that people will pay $10 for a coffee and bagel at the local coffee shop without much thought, but will hum and haw over shelling out $10 for book full of information that could change their lives. The perceived value of a book, vs the perceived value of a latté are a little off. Still, it makes sense that people are only willing to exchange what they consider a “fair price” for any good or service they require. This is a fair and equitable philosophy. No evil doing here..

Time Value of money

As many people have spoken about before, time is our most valuable asset. We are really trading our time for goods and services, not our money. If we have a regular 9-5 job, that is exactly what is happening. So when you consider spending money on anything, calculate how many hours of your life you will have to spend to pay for it. You then will have a better perspective on its relative value. If you calculate the time value of debt, it will really open your eyes. Calculate how many hours you need to work to pay off your car or your new purse and you may reconsider that credit card purchase. If you add up all the hours you will need to pay off your debt, plus pay all of your bills, it starts to chip away at that time bank account that has an upper limit. You can only work so many hours in a day and you will only live so long. Spend it wisely.

I love the move “In Time” with Justin Timberlake where the whole of society is based on time as the currency. Everyone lives until age 25 when they suddenly have a bank of 365 days to live, unless they earn (or steal) more time. I have watched it several times and every time I am left contemplating what a powerful message it is sending. We all have limited time. We really need to consider how we are spending it. By investing your money, you are actually leveraging time, As passive income happens in parallel to your life and allows you to earn more money than there is time. This suggests that if we love (value) our life, then we should love (value) our time, and thus, love money (which represents our life).

If you value your time, then you need to value your money. Money is the currency, but it really does represent time. So treat it lovingly. Fold is nicely into your wallet. Make sure the bills are all facing the same way. This is a way to remind yourself that you are caring and nurturing your life. Because money is your life. It represents time, freedom and survival. If you have lots of money you have all three. Money for moneys sake is not the goal. Freedom over your life is. Take back he freedom and treat money like it is your life. Pursuing freedom doesn’t seem very evil to me.

Money is LIFE

In our capitalist society, it is easy to put money on a pedestal as it represents life. We need money to live. It costs money for food, clothing shelter, healthcare, education. Without it, our quality of life suffers. We have made it so that money is necessary for our survival so we instinctually give it great power over us. What money really represents is freedom. It represents control over our lives. It represents health and vitality. In the context of our capitalist society we are only as free as the amount of money we have.

Is it any wonder that, in areas of our world where poverty is prevalent, crime and suffering are also widespread. Look at any slum, and you will see higher crime rates, higher alcohol and drug abuse, and lower moral standards? Why? This is out of necessity. When you are desperate, you do not have the luxury of a strict moral code. Living on the straight and narrow might mean hunger, homelessness, sickness or even death when you are destitute. How can money be evil, when lack of money seems to create these types of problems?

Values

If I were to re-word the Bible quote above, it would be “Lack of values is the root of all evil”. There is nothing inherently evil about money or capitalism. It is when people lose sight of their values that things go wrong. If people take capitalism too far by putting profit before people, then it becomes a monster.

The problem with “monster” capitalism is when people stop understanding the basic tenets of good old fashioned capitalism and start to believe that money and wealth are entities unto themselves. Believing that money is the end goal becomes and endless pursuit. How much is enough? What lines am I willing to cross to obtain it?

The old saying, “We could save the planet, but there’s no money in it” sums up the problem. Capitalism is great and is a wonderful way to exchange value, but it should not be at the top of the food chain. People need to be at the top. Because people are immersed in capitalism they don’t realise that they are separate from it. They think that is the way it is. Its like a fish doesn’t know its in water. Capitalism is so pervasive that we can’t see it objectively. It is quite easy to put profit before people because we feel like if we don’t we might lose something. We might lose our place in line. We might lose to the competition, then we will have nothing and die. These are the instinctual feelings that come up, because we are so engrossed in our capitalist fish tank.

Play the Game

In my new book, Invest in Yourself, I talk about how we can become more aware of the fact we are living in a capitalist system, and how we can take that awareness and use it to our advantage. Play the game, then change the game.

As we are living in a world that is ruled by money, let’s learn the rules and play the game to our advantage. If we educate ourselves about how money works, we can become prosperous enough to help others. We can find the time to change the system for the better. We need to know the rules, before we can break them If we try to change the system to benefit humanity without being in a powerful position, we will have less efficacy and people may wonder if our motives are just a product of our circumstances. Take from the rich to give to the poor is a terrible plan. There are better systems.

If the rich are spearheading positive changes in the capitalist system then it has a lot more impact. Sure, people will question their motives as well, but I would rather be comfortable while fighting the good fight, then struggling.

New Ideas

We need to start thinking in terms of capitalism with limits. There needs to be a philosophical limit to capitalism. We need to put people first.

Putting people before profits comes in many different forms. It can be demonstrated by charity, social programs and by law.

Charity is karmic response to wealth. If you look at most wealthy people, they are also the most generous and charitable people you will find. If you have lots of money, you’re able to make a bigger impact on the lives of others who are less fortunate. Most respectable self help gurus teach that charitable giving (usually 10% of your income) is an integral part of any wealth creation plan. It is widely thought of as a moral imperative to give back to the greater good when you have been blessed so abundantly. This doesn’t sound like evil to me.

Socialism is a continuum that every country sits upon at one place or another. Depending on where you live in the world, your country may have more or less socialist policies. The good thing is, as we have the world wide web, and information is abundant, we can study the different ideologies and see how well they are working. It would be very narrow minded to think that your country’s way of doing things is the best and only way. Most free countries have some sort of social programs in order to benefit the greater good, and assist the populace where they can.

For instance, here in Canada where I live, we have universal health care. That means we go see the doctor or have a hospital stay, it costs us nothing. We actually do pay for it in the form of really high taxes, but it is nice to know that in the event that I need medical care, it is available. Contrast this to some other countries where health care is a business, like an auto shop, where you have to pay for everything. If you get sick, but can’t afford to pay the medical bills, you are going to continue to suffer, perhaps even die. From a certain point of view, this is immoral. What set of values lets people suffer just because they have no money?

Is it immoral to let people suffer in the form of hunger or homelessness just because they find themselves with no money?

Some interesting philosophies that try to address these issues are out there. I have come across a few ideas that have been proposed to try to find solutions to some of capitalism’s failings and I think they are very worth contemplating and having discussions about.

Universal Basic income

There is a social program that has been experimented with in various places in the world that has attempted to alleviate suffering in the form of Universal Basic Income or UBI. It is a monthly distribution of cash to every person living in an area that is enough to cover basic living expenses (food, shelter, clothing). This is done with no strings attached as to how they spend it. It has been shown to be very effective and trials are continuing to this day.

A great book on on UBI and its efficacy is “Give Them Money”. It is a captivating read and really opened my eyes to a new way of thinking including how a lot of our initial criticisms of this idea are unfounded. I love the idea and I hope that society will continue to explore these ideas and bring this new kind of thinking into our collective consciousness.

Ubuntu Contributionism

There is a movement out there that takes things even farther that UBI. It is called “Ubuntu Contributionism” and it suggests removing money from society altogether. It is based on ancient African principles of community and contributing to society. This is an idealistic proposal, but it is not without merit. In his book, UBUNTU Contributionism, author Michael Tellinger offers a very sound argument for this theory and how it might work in realty. He tries to cover all the angles and addresses the most frequent arguments against it. It is worth reading just to open your mind to new ideas and how we might think differently about old paradigms. It is a little repetitive and conspiracy laden, but still offers a refreshing perspective.

Star Trek

This is the ultimate ideal. Star Trek proposes a world without money at all, as everything we could ever want is immediately available via technology. Food can be created with food replicators that turn raw energy into matter. Food, clothing, shelter are all free. Your only challenge in life is to find fulfilment. I know this is science fiction, but if we really think about it, what would we do if money wasn’t an incentive? Isn’t growing as a human being, and challenging yourself to be the best version of you as great goal? Isn’t contributing your gifts and furthering the advancement of humankind a much more noble pursuit than “making ends meet”? I know this is fantasy, but in the end maybe we need to keep this in mind as the ultimate end goal.

I offer these ideas in order to awaken you from the dream. The dream of living in a capitalist system while being unaware of it. I want you encourage you to become “self-aware” and realise the nature of your world. By understanding the game you are playing, you will be far more equipped to succeed.

Reality

As cool as dreaming about a better world is, we still need to live in the here and now. The world is the way it is and, as much as we can aspire to make positive changes, we need to deal with it as it is now.

Let’s learn as much as we can about our capitalist system. Let’s educate ourselves about money and how we can create a life of freedom and abundance. Let’s use the capitalist system to create social change, give to charity and spark innovation so that all of humanity can enjoy a better life. This is only going to happen if we stop thinking that money is evil. This is only going to happen if we truly understand that our values are the driving force that should motivate us, not money.

I suggest learning as much as you can about wealth and money so you are able to live your highest values.

I wrote an article about my top 5 personal since books. These are a great place to start your financial education.

Also, I believe my books will assist you on your journey to financial freedom.

Money is not evil. It is just a tool.

Learn to use this tool and you can truly live your highest values.

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