As we watch uncertainties in the world economic scene and the impact on nations, businesses and jobs, it is timely to think about
resilience and money.
Legacy of Wealth and
Resilience
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| Money can build or destroy legacy and resilience Image: www.lepus.com |
Is resilience dependent on money? Of course not. It can however, be facilitated by money. Smart folks build financial and non financial resilience.
They use money astutely to build holistic resilience in self, family and others.
Money is a servant and must never be allowed to be our master.
Keep it in servitude by investing in:
- Sowing goodwill among people
- Celebrating family and events in life
- Equipping self to build strengths, developing areas of our weaknesses (attending
a course, buying books, engaging a coach, etc)
- Resourcing people and businesses
- Helping the poor
- Grow a relationship through goodwill,
celebration or sharing
Four Kinds of Capital
Money sown with kindness often converts to new
opportunities, returned favours, better trust and reputation. It can be used to
create four kinds of capital: namely, economic, social, political and spiritual
capital.
Capital Creation and
Resilience
- Buying a meal for an old man unable to afford breakfast (I did a few days ago)
> Social Capital > Social Resilience
- Offering a grant/loan to start a sustainable micro businesses (in my radar screen)
> Economic Capital > Economic resilience
- Sponsoring a depressed person on a spiritual retreat for emotional healing
> Spiritual Capital > Spiritual Resilience
- Using state resources to grow the wellbeing of citizens on equitable terms
> Political Capital > Political Resilience - Buying a meal for an old man unable to afford breakfast (I did a few days ago)
> Social Capital > Social Resilience
- Offering a grant/loan to start a sustainable micro businesses (in my radar screen)
> Economic Capital > Economic resilience
- Sponsoring a depressed person on a spiritual retreat for emotional healing
> Spiritual Capital > Spiritual Resilience
- Using state resources to grow the wellbeing of citizens on equitable terms
Funding Sustainable Resilience
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| Muhammad Yunus empowered millions through micro loans |
Millions are now more resilient thanks to Muhammad Yunus,
founder of the Grameen Bank in Bangladesh. Yunus created an altruistic banking system for the
poor, by combining innovation with monetary contributions. He empowered the
poor with seed funds to start micro businesses and avert poverty and famine. This Nobel Peace Prize laurette’s banking system is used in 58
countries, including US, Canada, France, Netherlands and Norway. Defying
conventional banking cynicism that he would not recover his money, he persisted with loans for the poor. Today, he serves 8.29 million borrowers with a 97% loan redemption
rate, the highest in any banking system.
Wisdom enables innovation and stewardship, which
ultimately brings enduring wealth, honour and peace.
Impact of Money
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| The compounding power of money calls for good deployment |
Money is a store of value, a facilitator of transactions for
things we wish to acquire or achieve. In contemplating money, three key issues
come to mind:
- Compounding
- Sowing and reaping
- Stewardship
Compounding Effect
The compounding effect can be positive or negative. Savings
and wise investments bring positive compounding. I have a good friend, who surmounted tough times, and through wise investments and
savings bought two houses with cash, without a loan! He attributes it to God’s blessings (which I
believe were accumulated through his consonant actions). There is empowerment
when one reaches a stage like that.
Little accumulative value is built, or worse, new liabilities are created when money is indiscriminately used. Financial over commitment or unmanaged dry spots can lead to mounting debts, creating a source of anxiety and distraction from career and family, reducing the sense wellbeing.
Little accumulative value is built, or worse, new liabilities are created when money is indiscriminately used. Financial over commitment or unmanaged dry spots can lead to mounting debts, creating a source of anxiety and distraction from career and family, reducing the sense wellbeing.
Fertilizer and "Empowerer"
To me, money can be seen as a fertilizer. We place it where
we want to empower growth and multiplication. There must be clear
intentionality. No one likes spilling fertilizer on weeds. Otherwise, weeds will sprout with a vengeance. We end up wasting fertilizer,
time and even money for tedious weeding!
Many “not so well paid people" have financial
resilience because they chose to start saving early and are financially prudent. They go on holidays regularly, are relatively debt free and
have lots of peace of mind to tend to their family.
Sowing and
Reaping
The farmer cannot consume or sell all his harvest. He needs to retain some to sow for the next
crop, lest there be nothing to reap at next harvest!
Sowing implies parting with money – release for growth, cutting
losses, taking risks, doing the right thing.
Seed has no regenerative value till it leaves the farmer’s hand. Hoarded
money does not appreciate, it has to be invested, sown, shared or grown.
Stewardship and
Ethics
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| Sustainability - biodiesel or food? Image: www.agrimedia.ca |
More people and companies are looking into socially responsible
investments these days. Others are looking into downstream ethical impact of
their investments eg. supporting the growing of corn for biodiesel seems environmentally sound and sustainable, till one
realizes that over extending this may rob the poor of a food source,
through food crop diversion to biodiesel. Should environmental sustainability be achieved at the expense of the starving?
Good stewardship thinks beyond growing funds or straight
ROI. It looks at how funds are used, and the primary and secondary outcomes.
Money must Engage
People
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| Money does not go far without personal engagement Photo: www.justmeans.com |
There is a human interface in every monetary transaction (ie. between payer and payee). It therefore
flows and grows best in the context of well cultivated relationships. Money
dumped at hands of remisier will never grow as much as that with whom one has a
positive relationship and good communications. Capital placed in abstentia in a
company by a sleeping partner is exposed to many risks.
Good stewardship must positively engage the human interface
of money.
It means good relationships with employees, bankers, helping
someone both through funds and through cultivating a supportive
relationship. Paying staff well is no
guarantee of motivation, innovation or productivity. Engaging them in
constructive relationships, on top of good remuneration goes much further.
The human interface creates its own multiplier effect,
combining with the compounding effect of financial multiplication. In the case
of Muhammad Yunus, banker for the poor, he took risks to build goodwill. He got
to know the poor personally and learnt new economic lessons from them. Multitudes have prospered together with Yunus. Today, international
recognition, influence and multiple doors in business and academia are open to
him. His wealth has grown too.
Force Multiplier
Money and resilience can be multiplied for life on many fronts - to create social, economic, spiritual and political capital.
Well stewarded
money is a powerful force multiplier. Deploy it well to build resilience and a rich legacy for self, family and society.
Samuel also is also an expert Ezine author. You can check out his articles at:
Samuel also is also an expert Ezine author. You can check out his articles at: 