For the love of money

“Money can’t buy me love” a lyric from an old Beatles song is at best a half-truth because it’s just as true that a lack of money can’t buy you love either. You can’t allow yourself to reason that the opposite of one assumption is “gospel” truth. The relationship between finding true love, with or without money, is irrelevant but assertions such as the one from the Beatles song may have dampened the possibilities of either one happening as frequently in our society as they could have otherwise.

It can be very difficult to filter through some of the dogmas that have become culturally accepted as gospel truth today. Some of them have impoverished human beings rather than freed them to become wealthier. Think of how long the human race propagated the concept of a flat world, or the impossibilities of a sub-four minute mile, or a man on the moon, or cell phones, etc.

Money, or rather the circulation of money, produces material wealth in this world. But the liberty to exchange money freely for the goods and services you value more than the money you exchange it for is the real producer of wealth. Historically, as regulations increase (less personal liberty) the real wealth of the human race has diminished. Today is no different.

That’s why government and other forms of regulation such as those sold by the financial planners and gurus - cutting up your credit cards, paying cash for everything, hoarding up money in a 401k or other form of retirement plan - fail to produce financial freedom or wealth. To prove this point for yourself please study the following:

You’ve just graduated from XYZ Financial School and decide you’re going to pay cash for you next car. You save your money faithfully until you’ve saved up $30,000. Now you take your $30,000 of savings and purchase your car. You have no payments! And because you have no car payments, you believe you’re financially free or supposedly wealthier than if you’d bought your car on credit.

But what’s really happened to you? You’ve lived a number of years before you saved up $30,000? Was that four or five years? By cashing in your savings to purchase your car, you’ve lost the interest you would’ve earned on your $30,000. If you could have earned just four percent in a long term CD account you’d now have $36,629. Instead, your money is now working for somebody else and you’ve got to go back to work.

But you do have a car.

How could you have done better? You could’ve borrowed from a bank for your car purchase.

Even paying eight percent, you would’ve done better! Over a five-year time frame the payments on your car would have been $36,498, which means paying cash for your car cost you $131 more than if you’d borrowed the money to purchase your car.

So much for XYZ Financial School huh?

But wait! There’s another way, although few follow it because they don’t even know it exists.

You can buy your car, and you can also have $39,457 over the next five years! You do this by learning how not to give away the earnings on your $30,000 while you pay yourself the same market rate (eight percent) as if you’d borrowed the money to purchase your car. And that’s better than if you followed the XYZ Financial School advice!

For the love of money, isn’t about time you learned that these financial planners should show you how to love your own money better than they love the money they make in profit off you when you believe and follow their self-serving advice and regulations?

February is a month when we traditionally think about love and romance. It can easily become the time you learn to love your own money enough to take care of it properly so that it can bless you and the ones you love as well... now and in the future.

(In private practice for 25 years, Dr. Tomas McFie has coached hundreds of chiropractors and many other small business owners and individuals to lasting wealth and riches. His book, “Prescription For Wealth,” has helped thousands of people understand the purpose of “why you should become wealthy.” Call him at 1-866-502-2777, visit him online at www.life-benefits.com or follow him on Facebook at Life Benefits, Inc.)