There is the principle anyone must grasp and internalize in their hearts in order to achieve abundant wealth and life. The principle is stewardship. The opposite of stewardship is ownership. So what is the difference between these 2 principles? Let us find out more.
Ownership to most people may be the key to financial and life success. “Take ownership of your finances and you will take responsibility in managing it”, is often a goodwill advice given to someone who is managing their finances poorly. However, in my opinion, the poor guy even after taking ownership over his finances, he will still face difficulties growing and managing his finances, simply because he is the ‘owner’! This ‘owner’, even after he takes responsibility over his money, will not do well as he still does not have the habits and attitude to manage his finances well.
Imagine I have a sum of money in my hands, and it is MY money. What will I do with it? I will most probably spend on the things I like and give me immediate gratification. Yes, I may save some for a rainy day, but the money is usually subjected to the wimps and fancies of my human nature, the desire to live well and have a good life. And believe me, the human nature, if not controlled, will usually end up in self indulgence, simply because it is MY money, I own it, and I decide what to do with it.
Let us take a look at the principle of stewardship. Stewardship can be illustrated in a story:
There was once a Master, and he had 3 servants. The Master was going on a long trip and he said to his servants, “I will give each of you talents, and I want you to take care of it when I am gone and be fruitful.” He then gave the first servant 5 talents, the second 3 talents, and the third 1 talent. He then went on his journey.
The first servant immediately took the 5 talents and traded in the marketplace and gained another 5 talents after some time. The second servant did likewise and gained another 3 talents. The third servant, after the master was gone, took the talent and buried it into the ground and went on with his daily affairs.
The Master then came back and demanded back his money. The first servant reported, “I have went to invest and managed YOUR talents, and I have gained 5 more.” The Master was pleased and said, “Well done, good and faithful servant. You have been faithful in little things. Now I shall give you 5 cities to govern over in my kingdom.” Likewise he was pleased with the second servant and rewarded him with 3 cities to govern.
However, the last servant came and said, “Master, I was afraid that I will lose your money and therefore I buried it and went on MY daily affairs. Here, this is your one talent.” The Master was furious and banished the servant out of his kingdom, because he had not kept the Master’s command of being fruitful.
Stewardship thinking will radically transform our approach to our finances. For me, knowing that my financial resources are from God by grace, given by my ability to work, and it is for my family and loved ones, gives me tremendous drive to manage it well to be fruitful. I am accountable to my family, my loved ones, and God, who gives me the ability to acquire wealth, to bless the people I care about.
And this principle of stewardship does not only relate to our financial area, but all other areas of life as well. We have to be superb stewards, or managers of our life, our resources, our relationships, our health, everything! Also, having the awareness that our time on earth is limited and we have to pass on someday, gives us a healthy perspective of how we manage our life and resources, as we are not going to take it with us when we die, rather, they are passed on the our next generation, as a legacy.
In addition, coupled with being a good steward is a need for wisdom. The book of Proverbs in the Bible read, “Does not wisdom cry out, and understanding lift up her voice? She takes her stand on the top of the high hill, beside the way, where the paths meet. She cries out by the gates, at the entry of the city, at the entrance of the doors.” Wisdom is calling out to mankind, because it is an essential life skill for survival and growth in life. Wisdom is the key to effective stewardship, and effective stewardship is the key to having an abundant and fruitful life.
Are smart, intelligent people actually wise? Well, not necessary so. I may be very intelligent in my studies, in math, in making a lot of money in investments, but I may not be wise in handling my life, my emotions, my morals, etc. I may lose the whole lot of money overnight, just because I fail to handle other areas of my life well, for example, my indulgences, my lust, my pride, and many other things. Wisdom is gained from life experiences, from applying our knowledge into practical life situations, and always having the attitude of humility with learning.
For me, the source of wisdom is from the Bible. The Bible presents life stories, in which truth and knowledge is applied in the lives of the characters. I learn so much though the life experiences from the people in the Bible. Also, I acquire wisdom by speaking to mentors, elders, and people whom I respect. I can even gain wisdom by watching a little child learning to walk, and he picks himself up whenever he falls down, never giving up. Wisdom is everywhere! Wisdom is calling out from the streets! Seek for wisdom and wisdom will find you.
I am always seeking for wisdom to be a good steward of my money, my life. I am on a financial life journey, learning through books, through the media, through people and through life experiences. And I know that I am growing day by day, being the person I envision to become. I will be that wise man, the sage, the elder, with a loving wife who adores me, children and grandchildren who respects me, friends who favor me, people who share my wealth and wisdom, and God, who is smiling at me and saying, “Well done, good and faithful servant. You have been faithful in little things in your life. Now come and be rewarded in your Master’s presence.”
With wise stewardship of God’s resources to me, I will thus complete my financial life journey with excellence. How will you complete your financial life journey?
Aaron Graham Tay, CFP
Friday, April 17, 2009
Monday, April 13, 2009
Wealth Distribution – Leaving a Legacy
Wealth has a purpose. Money is not the end in itself; rather, it is the means to an end. What is the ‘end in mind’ for you? In Financial Planning, we always start with the end in mind, and then we draw out the roadmap to achieve the success that we desire. Imagine that you have already created the wealth that you always dream of and living the life that you desire. Will that be all that it is to life?
Many successful investors and entrepreneurs I know and whom I read about, always have the desire to give back to society. They are grateful that the people around them and the community at large have given them the opportunity to succeed in life. Of course, these are billionaire investors who have built up massive wealth for themselves and their family, and are able to set up foundations for the noble cause. We may not achieve the level of wealth which they have attained, but I believe that whatever capacity we are in, we are also able to bless others with what we have.
In total financial planning, estate planning and leaving a legacy is often communicated to the client. Many clients want their wives, children, grandchildren, to be well taken care of as the first priority. They will set up trusts for the family, for example, an education trust which will ensure that their grandchildren will have enough funds to complete university.
After they have sufficient funds to provide for their family, some of the clients will want to extend their compassion and financial help to support a particular cause, for example, medical advancement, education for the poor, etc.
Some of the philanthropists whom I admire are Bill Gates & Warren Buffet. Bill Gates build his computer empire over his lifetime and later on set up the Bill & Melinda Gates Foundation, giving grants to numerous organizations dealing with global issues such as health, agricultural development, financial services to the poor, etc. Mr. Warren Buffet, similarly build his wealth via his investing brilliance and became the richest investor in the world. After which he donated half of his billions of wealth to the Gates Foundation, blessing many beneficiaries of the foundation. He subsequently became the richest man on earth and still is today. Other notable successful philanthropists include Rockefeller, Andrew Carnegie and George Soros, each to his own personal calling and cause.
I personally desire to impact the world to the extent like these great men listed above. And I can do it today. Leaving a legacy need not happen only when we are passed on from this world to the next, but rather, it takes a life long commitment to build a legacy that is remembered by future generations.
Charity begins at home. Leaving a legacy begins at home. As we are accumulating wealth in order to provide and bless our families, we can right now show love to them by giving them quality time, caring for them, listening to them, encouraging them, etc. Many people take priority in making money, thinking that providing for their family financially and buying gifts for them is sufficient to show them that they love their family. Sad to say, they are sadly wrong. To love a person we need to communicate, and if we spend all our time at work and making money, where are we going to have the time to love them and communicate with them. In contrary, many people realize only after they have accumulated sufficient wealth for themselves, which their family is already breaking apart, for a myriad of reasons. It is sometimes too late to salvage the family which they have always wanted to build and provide for.
Also, many people have made such claims, “When I am wealthy enough, I will start a foundation or charity that will help many people.” I will have these questions in my mind, “What do you mean by wealthy enough? When do you think you will be wealthy? How many people do you want to help?” These claims are vague and abstract. Most of the time, wealth is never enough. People will usually be trapped in the whirlpool of greed, never being satisfied with what they have. After buying a condo, they will want a bungalow. After buying their BMW, they will want a Porsche. When will it end? When can we start to really help people?
For me, my stand is clear; I will accumulate wealth and at the same time, start building my legacy right here, right now. There is no time to waste. At the end of our lives, on our death bed, we will not be asking the question. “How much time have I spent in the office today? Or how much money have I accumulated.” I want my life to be with no regrets. I want to be able to say, “Yes, I have made a difference to the lives of many people, my family and my friends.” That is why today, I will tell my loved ones that I love them, whether in words or in deeds. Life is uncertain, and I can fully comprehend it given my experience with illness since 8 years old. And I have experience a new birth in life, by my brother giving me his kidney in his kindness. Also, with a woman who is willing to be united with me in Holy Matrimony, I have experienced God’s goodness and grace, and yes, true love.
Therefore, it spurs me even more to accomplish what I have started out to do, to set up a foundation to fund and heal the lost, sick, poor and needy kidney patients, giving them a new life, just like how I have received my new life in humility. And it will not start 10 year later or 20 years later. It will start now and as my wealth increases, so will the blessings to these needy people increase. I will minister to these needy patients in their spirit, soul and body by loving them and providing for them, right here, right now.
This is truly wealth with a purpose.
Aaron Graham Tay, CFP
Many successful investors and entrepreneurs I know and whom I read about, always have the desire to give back to society. They are grateful that the people around them and the community at large have given them the opportunity to succeed in life. Of course, these are billionaire investors who have built up massive wealth for themselves and their family, and are able to set up foundations for the noble cause. We may not achieve the level of wealth which they have attained, but I believe that whatever capacity we are in, we are also able to bless others with what we have.
In total financial planning, estate planning and leaving a legacy is often communicated to the client. Many clients want their wives, children, grandchildren, to be well taken care of as the first priority. They will set up trusts for the family, for example, an education trust which will ensure that their grandchildren will have enough funds to complete university.
After they have sufficient funds to provide for their family, some of the clients will want to extend their compassion and financial help to support a particular cause, for example, medical advancement, education for the poor, etc.
Some of the philanthropists whom I admire are Bill Gates & Warren Buffet. Bill Gates build his computer empire over his lifetime and later on set up the Bill & Melinda Gates Foundation, giving grants to numerous organizations dealing with global issues such as health, agricultural development, financial services to the poor, etc. Mr. Warren Buffet, similarly build his wealth via his investing brilliance and became the richest investor in the world. After which he donated half of his billions of wealth to the Gates Foundation, blessing many beneficiaries of the foundation. He subsequently became the richest man on earth and still is today. Other notable successful philanthropists include Rockefeller, Andrew Carnegie and George Soros, each to his own personal calling and cause.
I personally desire to impact the world to the extent like these great men listed above. And I can do it today. Leaving a legacy need not happen only when we are passed on from this world to the next, but rather, it takes a life long commitment to build a legacy that is remembered by future generations.
Charity begins at home. Leaving a legacy begins at home. As we are accumulating wealth in order to provide and bless our families, we can right now show love to them by giving them quality time, caring for them, listening to them, encouraging them, etc. Many people take priority in making money, thinking that providing for their family financially and buying gifts for them is sufficient to show them that they love their family. Sad to say, they are sadly wrong. To love a person we need to communicate, and if we spend all our time at work and making money, where are we going to have the time to love them and communicate with them. In contrary, many people realize only after they have accumulated sufficient wealth for themselves, which their family is already breaking apart, for a myriad of reasons. It is sometimes too late to salvage the family which they have always wanted to build and provide for.
Also, many people have made such claims, “When I am wealthy enough, I will start a foundation or charity that will help many people.” I will have these questions in my mind, “What do you mean by wealthy enough? When do you think you will be wealthy? How many people do you want to help?” These claims are vague and abstract. Most of the time, wealth is never enough. People will usually be trapped in the whirlpool of greed, never being satisfied with what they have. After buying a condo, they will want a bungalow. After buying their BMW, they will want a Porsche. When will it end? When can we start to really help people?
For me, my stand is clear; I will accumulate wealth and at the same time, start building my legacy right here, right now. There is no time to waste. At the end of our lives, on our death bed, we will not be asking the question. “How much time have I spent in the office today? Or how much money have I accumulated.” I want my life to be with no regrets. I want to be able to say, “Yes, I have made a difference to the lives of many people, my family and my friends.” That is why today, I will tell my loved ones that I love them, whether in words or in deeds. Life is uncertain, and I can fully comprehend it given my experience with illness since 8 years old. And I have experience a new birth in life, by my brother giving me his kidney in his kindness. Also, with a woman who is willing to be united with me in Holy Matrimony, I have experienced God’s goodness and grace, and yes, true love.
Therefore, it spurs me even more to accomplish what I have started out to do, to set up a foundation to fund and heal the lost, sick, poor and needy kidney patients, giving them a new life, just like how I have received my new life in humility. And it will not start 10 year later or 20 years later. It will start now and as my wealth increases, so will the blessings to these needy people increase. I will minister to these needy patients in their spirit, soul and body by loving them and providing for them, right here, right now.
This is truly wealth with a purpose.
Aaron Graham Tay, CFP
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