Scary Words: Money vs. Finances
Why is this blog called “Money for the Rest of Us” and not “Personal Finance for the Rest of Us”? Because “finance” is a scary word. Few people like finances, but nearly everyone loves money. When I think of money, I think of cash. When I think of finances, I think of budgets. Investopedia defines “personal finance” as:
”Financial planning for individuals. Generally, it involves analyzing their current financial position, predicting short-term and long-term needs, and recommending a financial strategy. This may involve advice on pensions, school fees, mortgages, life insurance, and investments”
Investopedia defines “money” as:
“A commodity or asset, such as gold, an officially issued currency, coin, or paper note, that can be legally exchanged for something equivalent, such as goods or services.”
Life insurance, pensions, and mortgages are not very fun. But goods and services are fun.
Using the word “finance” divides people—those who understand finances and those who don’t; those who are able to get rich and those who aren’t. By using the word “finance” we target a specific group of people, but when we use the word “money” we appeal to everyone.
Moreover, I believe that many people don’t think they make enough money to need “financial planning.” When was the last time you heard of a 20 year-old student or a 45 year-old mother of 4 on welfare going to a financial planner? Most people think financial planning is only for those who can afford it.
What other words and phrases do you think scare people into thinking they can’t ever be rich?
MBA - not necessarily a word- but it used to scare me as far as business and finance were concerned. When I finally did a read a book that set me free as far as my thinking I didn’t have what it took for business and to become wealthy, I took teh leap, and started my own business. No MBA. And you know what? I did alright.
I think the genius and reason behind the book I read, Rich Dad Poor Dad, is that is takes the scarey out of finance and explains it in every day terms and examples every day people can understand.