People Struggle With Money Because They Misunderstand These 2 Things

Why all the money in the world couldn’t save most people.

Jim Rohn has a famous saying, “If you took all the money in the world and divided it equally among everybody, it would soon be back in the same pockets it was before.”

Of course, many people find this hard to believe. They like to think that the wealth disparity in this world is unfair and that a few people have simply benefited from a bit of luck and good fortune.

However, you never get rich by demand or through blaming. Instead, you get rich by changing. More often than not, the people who have accumulated real riches in this world have done it through acquiring superior knowledge and skills, and then putting in the work.

As Grant Cardone writes,

“Although the media often discuss the disparity between the rich and the poor, they frequently fail to cover the amount of time and energy the wealthy have committed to reading, studying, and educating themselves.”

Indeed, if you're reading this, then you have about as much opportunity to financially prosper as does anyone else with an internet connection. The only thing holding you back is you.

The remainder of this article will explain why many people struggle with money. Here we go.

To Have More, You Must Become More

“Money is nothing more than a reflection of your creativity, your capacity to focus, and your ability to add value and receive back. If you can find a way to create value — that is, add value for a massive number of people — you will have an opportunity to have a massive amount of economic abundance in your life.” -Tony Robbins

In his book, Abundance, Peter Diamandis explains that things you desire are never truly scarce for you, but rather, simply out of your current reach. As he put it:

“Imagine a giant orange tree packed with fruit. If I pluck all the oranges from the lower branches, I am effectively out of accessible fruit. From my perspective, oranges are now scarce. But once someone invents a piece of technology called a ladder, I’ve suddenly got new reach. Problem solved.”

Likewise, from where you currently are, many levels of the financial tree may appear to be out of reach for you. However, you don’t need a ladder to reach more; you must become more.

You need to invest in yourself and grow as a person in order to transform who you are and what you deserve. As Jim Rohn has similarly said,

“Your level of success will seldom exceed your level of personal development, because success is something you attract by the person you become.”

Indeed, if you haven’t yet achieved the level of financial success you desire, it’s likely that you wouldn’t even be able to handle it. You haven’t become the right type of person.

So, don’t wish that things would magically change for you. Instead, go to work on yourself and be the change you wish to see in your world.

Few People Understand the Value of a Dollar

“Look at things not as they are, but as they can be. Visualization adds value to everything.” -David J. Schwartz, The Magic of Thinking Big

When most people look at a dollar, that’s all they see. When wealthy people look at a dollar, however, they see a seed. They see it not for its present value, but rather, for what it can be, and therefore it’s future value.

This is why in his book, The Millionaire Next Door, Thomas J. Stanley explains that you can’t often tell when you're living next door to a millionaire.

Most people would assume that the rich own grand homes, drive exotic cars and wear flashy clothes. However, these are simply the fake lives you see on Instagram. In reality, these people are buried in debt and will soon be broke.

Meanwhile, those who create sustained wealth are using their money to make more even money. As Anthony Moore writes,

“Rich people buy luxuries from the money their money made them; poor people buy luxuries from the sweat of their brow and hard labor.”

What’s more, is that it really doesn't matter how much money you currently have. The question you should be asking is: are you spending any spare money on stuff that’s simply nice to have, or are you investing it in yourself and your earning power?

As James Clear writes in his book, Atomic Habits, “You should be far more concerned with your current trajectory than with your current results.”

In Conclusion

Most people will never do well with money until; 1) They become the type of person who can make and handle the level of financial success they desire. And; 2) They learn the true value of a dollar.

If someone were to magically give them the finances they desire, it would soon be gone as quick as they got it. As Jim Rohn has another saying, “It is hard to keep that which has not been obtained through personal development.”