You Don’t Need More Money – You Need Better Tools

Will a raise, a second jog or overtime grant you financial freedom? No.  Only you can create your own financial independence.

Last week, I heard an incredible interview on NPR with Peter Buffet and Renee Montagne.  Peter shared his insight on the inheritance he did and did not receive from his father Warren Buffet (one of the wealthiest men in the world).

Peter talks about his appreciation for the support and encouragement he received from both his parents as he was growing up.  Warren Buffet has stated publicly that his children will not inherit his wealth.  In fact, when Peter was 19, he was given an inheritance of $90,000 and nothing thereafter.

Peter was encouraged to find his own way, learn about himself and achieve personal success on his own.  At times Peter struggled financially, even taking out a second mortgage.  Looking back, Peter is convinced the lack of financial help during those times was a greater gift than money ever could have been.

In the interview Peter articulates the very principle I share with my clients.  When you change the way you look at things, the things you look at change.  This is a life principle that I have learned from my mentor Dr. Wayne Dyer.

Peter has been asked if he is angry at his father or feels this is unfair.  On the contrary, Peter feels these experiences of self-development and realization do not have a dollar value.  Even in reflection, Peter clarifies that his $90,000 inheritance at the age of 19 would be worth over $70 million today.  Given the chance, Peter wouldn’t change a thing.

I assure you, Peter has not gone mad.  He has tapped into the knowing that self-realization can not be purchased.  Had he been given more financial support, he may not be where he is today.  Peter is a successful, award-winning musician and philanthropist.

Financial freedom is not about making more money; it is about getting control of the money you are bringing home today.  Too many of us focus our attention on earning more money, getting a raise or a better job.  Just as many consumers blame their debt levels on low wages or a dead-end job.  Don’t blame the job and don’t blame the money.  When you look inside, you’ll find where to put the blame.

The reality is, when we make more money, we spend more money.  If you can not live debt free while earning $8/hour, you will never live debt free earning $80,000/year.  You will simply have more expensive problems.

My clients learn how to get the maximum benefit of the money they bring home today. When their income changes from $8/hr to $80k/year, there will be no limit to what they can do and the people they can help.

Recently Peter and his siblings were each given $1 billion dollars to manage for a charity from their father Warren Buffet.  Do you believe Peter would be prepared or have the capability to manage this large sum if he had been given everything throughout his life?

It appears to me that Warren Buffet had a plan all along.  He wanted his children to learn how to make a positive impact in the world.  Once they had achieved this skill, he would pass down the incredible responsibility of managing 1 billions dollars to make the world a better place.

Peter faced the challenges we all face everyday; perceive challenges (i.e. lack of money) to be limitations and reasons to be bitter or perceive challenges as opportunities to be creative, adapt and learn something new about ourselves and the world around us.

When you change the way you look at things, the things you look at change.  Stop chasing that raise to live debt free.  Focus on getting the maximum from every tool and dollar at your disposal.  We all have much to be grateful for and have far more riches than we recognize.  This is the first step toward creating your own financial freedom.

Guest Post Contributed by Edward Sanchez, Registered Financial Consultant. In the past 11 years he has worked with over 17,000 consumers struggling with debt from across the country.  Edward is the President and co-founder of a Nationwide Consumer Credit Counseling firm.  In addition, Edward and I serve as Money Smart Partners for the Federal Reserve Bank of Chicago’s yearly Money Smart Week in promoting financial literacy and education throughout Chicagoland.