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Life Lessons, Money, Career, and Finances, Solomons Wisdom

King Solomon 5 Money Myths – How Many Are YOU Guilty of?

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Life Lesson #24: It’s not how much you make, it’s how much you keep

Today’s lesson is the third part of our series about King Solomon’s Tips for Money Management. This is Part 3 of our series – we’ll talk about five money myths and then we’ll examine King Solomon’s wisdom on how to SAVE more of that money you’ve worked so hard to earn.

Editor’s Note: if you have not yet read Part 1 or Part 2 be sure to do so now. And be sure to read all the way to the bottom to learn how you can get a cool freebie called “The 10 Commandments of Solomon.”

Money Myths – King Solomon Myth Buster?

When it comes to money, countless experts have long echoed the words of King Solomon about the following piece of wisdom…

It’s not how much you make, it’s how much you keep.

Granted, one part of the ‘how to keep more’ puzzle has to do with using efficient tax minimization strategies and unfortunately Solomon can’t help us much there so get yourself a good accountant, but Wwere the king can help us though is by dispelling a number of money myths – take a look and see how many of these you need some help with.

Here are 5 common myths about money that, if you don’t know the truth, will cause you to spend your way to the poor house. How many of these are you guilty of? (BTW – I’ve been guilty of believing ALL of these myths at one point or another of my life – oops!)

Money Myth #1: If I’ve got money, it’s time to make it rain!

King Solomon talked a lot about this money myth, consider the following wisdom…

  1. “It’s better to be a nobody and yet have a servant then pretend to be somebody and have no food.” (Prov 12:9).
  2. “One man pretends to be rich but has nothing, another pretends to be poor yet has great wealth” (Prov 13:7)
  3. “He who loves pleasure will become poor; whoever loves wine and oil will never be rich.” (Prov 21:17).
  4. “In the house of the wise are stores of choice food and oil, but a foolish man devours all he has.” (Prov 21:20)

What’s My Take?
When I was younger, as soon as I got some money in my pocket, I felt an intense desire to spend it. I wanted to live like a king and let everybody know it. That’s not smart. And while it’s true that as a ‘king,’ Solomon had plenty of money and thus was able to acquire lots of nice things, the key is that he didn’t spend like a fool and just throw his money away.

Over the years I’ve learned that there’s nothing wrong with buying yourself something nice if it will give you pleasure, however it’s important to live beneath your means and save for the long-term. Do that and you’ll make your life easier in the long run.

Here are a couple great books to read on this topic:

Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not!

The Millionaire Next Door: The Surprising Secrets of America’s Wealthy

 

Money Myth #2: Once I make $(xx salary) I’ll be happy.

Here’s what King Solomon said about this money myth…

“Whoever loves money never has enough; whoever loves wealth is never satisfied with his income – it’s all meaningless.” (Eccl 5:10)

What’s My Take?
I’ve been guilty of this for a long time.

When I first started working I remember wanting to make $30k, then $50k, then I was sure $100k was going to solve all my problems; it didn’t. Later I set my sights on $150k, then 200k, etc — but eventually I discovered that a high salary alone has never been enough to satisfy me.

Instead I’ve learned that while it’s great to increase your salary and earn more money, it’s just foolish to believe that a higher salary will make you happier. The fact is that there is no amount of money that will make you happy; only you can make yourself happy.

Here’s a couple interesting reads on this topic…

Happy Money: The Science of Happier Spending

Mindful Money: Simple Practices for Reaching Your Financial Goals and Increasing Your Happiness Dividend

 

Money Myth #3: If I want something AND I can afford it, then it’s a good buy.

King Solomon said this…

“As goods increase so do those who consume them, and what benefit are they to the owner except to feast his eyes on them?” (Eccl 5:11)

My Take
Here’s another one of my past mistakes. Once I started to get some money built up in my savings account I figured I could buy whatever I wanted “because I can afford it.”

That’s not smart.

I had to learn the difference between a want vs. a need. I hope you do as well because if you keep buying things you want but don’t really need and you’ll eventually have a house filled with useless things and no money – that’s a bad combination.

 

Money Myth #4: If I make more money, then my family will love me more.

King Solomon talked about this one numerous times, consider…

  1. “Better a meal of vegetables where there is love, than a fattened calf with hatred.” (Prov 15:17).
  2. “A greedy man brings trouble to his family.” (Prov 15:27).
  3. “Better a dry crust with peace and quiet than a house full of feasting with strife.” (Prov 17:1)

My Take:
Obviously it’s important to make enough money to provide for the things your family needs, however it’s also important to understand that just like money can’t buy you happiness, it also can’t make your family love you more.

YOU earn your family’s love by spending time with them.

Know this – where you spend your time is where your heart is. If you spend all your time at a high-paying job because it gives you money to buy a lot of nice things for your family, but you don’t actually spend time with your family, you’re missing out on life. How can your family love you when you are never around? Is all that money really worth it?

For more on this topic, read this article:

https://thathelpfuldad.com/spend-time-legacy-goals/

 

Money Myth #5: Buy now, pay later – I can get everything I want by using OPM.

King Solomon was not a fan of borrowing money. He advised the following wisdom about this myth…

  1. “If you have borrowed money….free yourself… Allow no sleep to your eyes…[until you] free yourself, like a gazelle from the hand of the hunter or the bird from the snare of the fowler.” (Prov 6:1-6).
  2. “He who borrows money will surely suffer, but whoever refuses to strike hands in pledge is safe.” (Prov 11:15).
  3. “Do not be a man who strikes hands in pledge or puts up security for debts; for if you lack the means to pay, your very bed will be snatched from under you.” (Prov 22:26-27)

What’s My Take?
I’m not going to sit here and tell you that you can’t make money using credit or borrowing OPM (Other People’s Money) – it’s a proven fact that by leveraging other people’s money on top of your own you really can make a lot of money.

But that route is both high reward (possibly) and high risk (definitely). You need a lot of education and advice before you go down that path because if you borrow money and can’t pay back what you owe, then you’re going to have problems. As King Solomon says “your very bed will be snatched from under you.”

Is using OPM worth the risk? I’d be very cautious here. Be sure you have a good plan – one that includes what to do if/when things go wrong.

Personally I’m a fan of the ‘slow and steady’ wins the race — as Solomon said (Prov 13:11) “he who gathers money little by little makes it grow” – and that route offers you peace of mind as well.

Bonus Wisdom of Solomon – What  to Do with all your Money?

After completing all three parts of this series, you’ve learned some tips from King Solomon on how to make money, save money, and invest money to make it grow. So now that you have all this money, what can you do with it?

Consider the following suggestions from Solomon on how to use your money.

1) Help others:

(Prov 11:25) “A generous man will prosper and he who refreshes others will himself be refreshed.”

(Prov 22:9) “A generous man finds himself blessed, for he shares his food with the poor.”

2) Leave something for your kids:

(Prov 13:22) “A good man leaves an inheritance for his children’s children.”

(Eccl 7:11-12) “Wisdom along with an inheritance is good…for wisdom is protection just as money is protection, but the advantage of knowledge is that wisdom preserves the lives of its possessors.”

3) Teach what you’ve learned to others:

(Prov 20:15) “Gold there is, and rubies in abundance, but lips that speak knowledge are a rare jewel.”

Thanks for joining us for these wisdom tips. We hope you’ve enjoyed King Solomon’s Tips on Money Management and that they will help you to improve your life. Remember, if YOU have a tip to share, please let us know in the comments below.

Solomon’s Wisdom – A Free Gift

If you like the wisdom of Solomon, you’ll enjoy this handy Cheat Sheet called “The 10 Commandments of Solomon.” Subscribe to my blog and not only will you get this instant download, but you’ll also get my wisdom via email each week so we can continue to stay in touch and help each other.

Money, Career, and Finances, Solomons Wisdom

King Solomon’s Seven Pillars of How to Make Money

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Life Lesson #23: You’ve got to Believe in order to Achieve

Today’s lesson is a continuation of King Solomon’s advice on acquiring wealth and good money management. This is Part 2 of our series – it’s about how to make money using the Seven Pillars of Solomon. BTW, if you have not yet read Part 1 of the Solomon Series be sure to do so now. And be sure to read all the way to the bottom to learn how you can get a cool freebie called “The 10 Commandments of Solomon.”

Did You Know?

Solomon’s books (especially Proverbs and Ecclesiastes) are filled with tips on how to build wealth and once again I’m encouraging you to read them for yourself; do that and you’ll really add to your knowledge base! Meanwhile, I’ve picked out 7 tips from the king for our discussion today.

Solomon’s Seven Pillars of How to Make Money

Solomon How to Make Money

  1. Don’t rush it, instead make a good plan.
    • (Prov 21:5) “The plans of the diligent lead to profit, as surely as haste leads to poverty.”
    • I know, I know – we already talked about planning in Part 1, right? Yes, that’s true, but this lesson is so important it bears reminding you of it.
    • In addition, this little tip is actually filled with lots of advice. Besides the importance of the plan, there is an important warning – don’t be hasty with your money! That means don’t go investing in ‘get rich quick’ schemes you see on late night tv, don’t start trying to flip houses without knowing what you are doing first, and don’t let someone con you into a “sure thing” like a multi-level marketing company that sounds too good to be true. Remember, slow and steady builds wealth, not hastiness.
    • Furthermore, this tip tells us that not only do you need a good plan, but you need to work that plan too. After all, anybody can make a plan, but not everybody will follow-through with it. Be sure to TAKE ACTION on your plan – be diligent, be consistent, and you will build wealth.
  2. Pursue multiple income streams.
    • (Eccl 11:6) “Sow your seed in the morning, and at evening let your hands not be idle, for you do not know which will succeed, whether this or that, or whether both will do equally well.”
    • Who said you can only have one job? Why limit yourself to just one stream of income? After all, if that fails, then what will you do? Now please understand I’m NOT telling you to go about and get multiple jobs (if you really want to do that, go for it), instead I’m telling you to build multiple income streams — ideally passive income streams.
    • What’s a passive income stream? It’s a way for you to collect money without having to put in additional time and effort. Who doesn’t want that?
    • So how do you do it? The options are endless. Passive income generation can come from things like getting paid for your videos on YouTube (my son Jax and I have made thousands of dollars this way), writing a book and collecting royalties, owning a bunch of cash-flow positive rental properties, earning interest on your investments, writing a computer program and selling it to collect royalties, making an album for your band and selling it, etc, etc. The possibilities are endless.
    • There’s nothing wrong with having a primary job (I still do) and using that as the source of your income, but why not have some other ways to get money too? Think about it. Then take action to create some.
  3. Don’t be lazy.
    • (Prov 20:13) “Do not love sleep or you will grow poor; stay awake and you will have food to spare.”
    • This one is pretty simple so I won’t spend a lot of time on it. You want to be lazy? Don’t expect to be rich. Are you willing to work your plan and pursue your dreams? Then you’ll acquire wealth. It’s that simple.
  4. Take action!
    • (Prov 14:23) “Hard work leads to profit, but mere talk only to poverty.”
    • AFTER you’ve come up with a good plan, it’s time to take action. Don’t get me wrong, there is value in taking your time to build a good plan, but sooner or later you’ve got to DO something.
    • If all you ever do is sit around and talk about what you’re going to do, but you never actually DO anything, then you’ll never build wealth. It takes meaningful action, consistent effort, and a stick-to-it mindset to achieve your dreams.
    • Don’t let the ‘desire to be perfect’ stop you from taking action – if you’ve built a good plan then get started on it, you can always tweak it later if you need to.
  5. Be hungry.
    • (Prov 16:26) “A laborer’s appetite works for him, his hunger drives him on.”
    • When I grew up I was a big fan of the Rocky movies. If you remember Rocky III, you’ll know the famous “Eye of the Tiger” song.
    • But do you remember the lesson of that song? During the movie, Rocky actually LOST a fight and didn’t know what to do next. His friend Apollo Creed explained the solution, “You lost that fight for all the wrong reasons. You lost your edge…the truth is you didn’t look hungry. Now when we fought, you had that eye of the tiger, man, the edge. And now you gotta get it back, and the way to get it back is to go back to the beginning.” With the help of Apollo, Rocky re-discovered his hunger and went on to regain his title as the greatest fighter in the world.
    • That same lesson can work for you too. You’ve got to WANT IT – you’ve got to have passion for what your goals are. In short, you’ve got to be hungry! When you are hungry, you take action because you know if you don’t take action, then you won’t eat. It’s just like in the wild – if an animal is hungry and wants to eat, they have to go out and hunt for their food. You need to do the same. Be hungry. Stay hungry. That’s a recipe for success.
  6. Pursue what you’re good at.
    • (Prov 28:19) “He who works his land will have abundant food, but the one who chases fantasies will have his fill of poverty.”
    • I realize this one might sound contradictory to #2, but if you think about it further it’s not. This quote is not telling us we only have to have one job (or one income stream), it’s simply telling us not to chase wild fantasies (those ‘get rich quick’ schemes, etc I warned you about).
    • In addition, this quote is also NOT telling us we can’t pursue our dreams – even if they may sound like fantasies to others. Remember, God has given you certain unique talents. Perhaps you are good with computer games? Or maybe you can play the violin like a pro? Or maybe you want to be an astronaut? Many people might actually tell you to get your head out of the clouds and find a job in ‘the real world’ by becoming an accountant, or a lawyer, or a fireman. All of those are great occupations and if that’s you’re passion, then go for it. However if your passion lies elsewhere, then I believe you need to follow that road instead.
    • We’ll talk more about this in lesson #3 — use the gifts God has given you and not only will you be happier, but you’ll be more successful too.
    • Become an expert in your field and the money will find you. That’s not chasing fantasy; that’s working the land that God gave you to work.
  7. Make money work for you.
    • (Eccl 11:1) “Cast your bread upon the waters, for you will find it after many days; give a portion to seven, or even to eight, for you do not know what disaster may fall upon the earth.”
    • For most people, the path to wealth comes from acquiring money, living prudently, and investing wisely so their money can grow over time. Money safely grows when you invest it in financially-stable companies that grow the value of their stock and pay a dividend (return) to you as the investor. Obviously there’s more to it than that but for the purposes of this lesson, that’s the key for now.
    • Just as importantly is this nugget – don’t put all your eggs in one basket – diversify your money. Invest it in different companies in different industries. That way if something bad happens in one area, you’ll be safe in another. Remember the sad lesson of the Enron employees – so many of them had all their retirement savings invested 100% in the company stock – unfortunately they didn’t know that their bosses were cheating the system and ultimately the company crashed – taking with it all the money of those employees as well. Don’t make that mistake.
    • Manage your money wisely by putting it in a variety of different things – perhaps you have some stock, some real estate, some gold, etc, etc. Keep track of it. Make sure the investments meet YOUR plan’s goals. Then be patient and watch it grow.

 

Don’t Wait, Use This Wisdom Today to Make Money

Look at the 7 pillars from today’s lesson – which one means the most to you?

Do yourself a favor and think about how you can use this knowledge to make yourself some money.

Action Item: write out a plan and then take action — remember nothing is going to happen if you don’t DO something about it, so get started now…

That’s the end of Lesson 2. If you want to read more of the Solomon Series, visit these links:

https://thathelpfuldad.com/king-solomons-tips-on-money-management-part-1/

https://thathelpfuldad.com/king-solomon-5-money-myths-how-many-are-you-guilty-of/

https://thathelpfuldad.com/wisdom-of-solomon/

Solomon’s Wisdom – A Free Gift

If you like the wisdom of Solomon, you’ll enjoy this handy Cheat Sheet called “The 10 Commandments of Solomon.” Subscribe to my blog and not only will you get this instant download, but you’ll also get my wisdom via email each week so we can continue to stay in touch and help each other.