A few weeks ago I read a story about an old couple who won $11.2 million from a lottery ticket and then proceeded to give it all away! I pondered what I would do in a similar situation. My mind raced from buying an island to investing the money but in the end I decided I would in fact donate it to charity. Before you scoff at my conclusion, let me try to explain why.
I used to want to get rich quick. Whether it was through the lottery or a quick trade in the market, I would have loved to make a few million in a day….maybe two days if it had to come to that. Then slowly but surely I began to realize that money is not real. What does that mean? Well at its essence, money represents a man’s effort. To better explain this idea, I’ve chosen two passages written by Ayn Rand.
Wealth is the product of man’s capacity to think. An honest man is one who knows that he can’t consume more than he has produced. Money will not purchase happiness for the man who has no concept of what he wants: money will not give him a code of values, if he’s evaded the knowledge of what to value, and it will not provide him with a purpose, if he’s evaded the choice of what to seek. Money will not buy intelligence for the fool, or admiration for the coward, or respect for the incompetent.
Only the man who does not need it, is fit to inherit wealth–the man who would make his own fortune no matter where he started. If an heir is equal to his money, it serves him; if not, it destroys him. But you look on and you cry that money corrupted him. Did it? Or did he corrupt his money? Do not envy a worthless heir; his wealth is not yours and you would have done no better with it. Do not think that it should have been distributed among you; loading the world with fifty parasites instead of one, would not bring back the dead virtue which was the fortune. Money is a living power that dies without its root. Money will not serve the mind that cannot match it.
Two things jump out for me from this passage. First, I’ve heard many people blame their lack of money for their lack of success. They propose that they would be successful if only money was handed to them first. They fail to realize that money will never elude the man with ideas. Once an idea for creation is set in the mind, events will conspire to make it a reality. Second, I think many people do not realize the powerful and needed effect of challenges on your character. An entrepreneur who came to speak at UF said it best when he said, “The best part of becoming a millionaire is not the money, but the person you become.”
Al Warrington recently told a group of students at the University of Florida that he has given away 65% of his wealth three times in his life and yet he is now financially better off than ever. How can that be? Well, the money just reflected his character. He gave away his money but never gave away what he had learned. It was only a matter of time before the money found him again.
So next time you’re on your way to buy a lottery ticket, ask yourself if a large, sudden influx of money is really what you want in your life. The dream may be better than the reality.
Awesome post. I have to say that I agree with you. Earning money is the only way to learn how money and wealth work. I found this article that basically confirms that thought.
Although it's a sad story, it's important for people, especially young people, to realize that money can escape you just as fast as it can come to you.
There is no cure for stupid. Especially not money. I understand the sentiment here. I get no sense of value from a win; I derive all of my enjoyment from winning. It's knowing that the culmination of my micro decision making proved superior to the culmination of my opponents decision making thereby proving my superiority for at least that fleeting moment.
Money, however, is not a desire but an enabler. It represents stored value that can be released however the holder can imagine. Neither of you can deny that money makes money. Trust me when I say all of the talent and ability in the world will not get you very far very fast without the capital to enable your ideas.
I'm not a Grinch, all of my long life I have given back to the world around me, given of my time, and given of my limited resources. If I got handed 14 million I would surely use some large portion of it to build something that I felt helped the world around me, but I would also use a large portion of it to start pursuing my own dreams, some selfish, some altruistic. I have every confidence that any of the three of us would not wake up a decade later broke, but a decade later at the helm of an empire. Then again we will probably all end up there anyway so I guess my own point is moot.
Sorry my comments are always multiple boxes, I spend too much time on Reddit and have lost my ability to be short and concise.
Great post DB. I don't think you're being a Grinch at all. You're definitely right that money makes money, and I don't think any of us are arguing that. Honestly, if a person has the correct mentality, talent, and desire to succeed, the source of the money he or she uses to enable his or her ideas may indeed be irrelevant to that person's success. But think about the individuals who know nothing about money or wealth, due maybe to their upbringing or just general state of mind. These people, much like the family in the article I posted, may be inclined to recklessly use unearned wealth, such as lottery winnings, instead of using that money to build value, whether for themselves or society. I think the lesson to be learned is that the art of building wealth helps us appreciate it.
I'm sure if handed $11.2 million I too would keep a bit to fuel my dreams before giving away the rest.
Wow, this was a GREAT ARTICLE…written with much character!