Wealth Is A Mindset
Read Time / 3 Minutes
Theme / Behavioral Finance
In a split second, the party music goes silent. The silence immediately followed by a panicked search and friendly wrestling to find a seat, any seat for that matter. It’s a popular ice breaker amongst youth groups across the nation. The name of the game is musical chairs. The rules are simple. You start with a double line of chairs with enough for every participant – minus one. Second, you turn on fun music and have the competitors walk around the chairs clockwise with the knowledge when the music turns off you must find yourself a chair to sit in, or you’re out. The cycle continues until there are two people playing and one chair remaining. The goal is to be the last one sitting.
Games bring joy to many of our lives. The thrill of competing, the hope of winning, and being crowned the best — even if it’s only for a moment. It makes me contemplate the lure of gambling. Gambling shows its face in different ways. In college, my finance professors reasoned the purchase of an individual stock was gambling. Then, there is playing the penny slots. But, the most common forms of gambling? The Lottery.
The average American spends $1,038 a year on lotto tickets (according to a survey facilitated by Bankrate). Now, I could get nerdy on you, pull out a financial calculator, tell you that $1,038 invested over 40 years at 10% annual average return would equate to $550,000, but I won’t. If you research lottery statistics, you will find a plethora of information on the risks associated with playing the lottery. Surprisingly, the greatest risk isn’t loss of initial investment or opportunity cost. The greatest risk involved with playing the lottery is winning the lottery. Yes, lottery winners face many serious challenges including a heighten chance of going bankrupt.
How could this be? An excellent question. The sudden winnings of a lottery for many are a temporary solution to a much deeper problem — a poverty mindset. Like a reservoir with a broken dam, the influx of cash gets squandered. Its help is only for a moment.
During an interview on “Uninterrupted,” Klay Thompson (shooting guard for the Gold State Warriors) profoundly muttered, “Wealth is a mindset.”
The Word of God puts it, “Wealth gained hastily will dwindle, but whoever gathers little by little will increase it” (Proverbs 13:11).
In my own personal reflection, I frequently find myself playing a similar game to the one of musical chairs. Instead of playing for fun and seeing it as a shared experience with others, it’s often a competition and my goal is to be sitting in the final chair of a “successful” life. Maybe, you can relate.
Life is not a game to play as if there is a winner. It’s a gift. As musical chairs is played to develop social skills and learn how to have fun even with strangers, our life should be based on the quality of our relationship with God and His image bearers. As Klay Thompson put it, “Wealth is a mindset. If you have relationships and experiences around you, those are priceless.”
My challenge to you today can be answered by a quick look at your bank statement:
Do you know you are wealthy?
Ryan De Amicis
Wealth Advisor
408.758.6413
ryan@christianwm.com
