Money is Not a Single Game

You often hear the phrase, "run your own race." I use this term a lot when it comes to financial planning and talking with families about money. 

So, why is running your own race regarding money so important?  Because what is crazy to you when it comes to money is normal for someone else.  And someone else may see what may be normal to you regarding money as crazy. 

It may seem reckless for someone to go out and buy lottery tickets when they do not have food in their refrigerator.  But when you are thinking about how to survive in the next hours or days, you're not thinking about saving for next week, month, or even next year.  Instead, you are concerned about the here and now, and the chance to win that lottery can help put food in the fridge. 

There are so many different games that people can play when it comes to money.  It can be easy to judge others by how they spend their money, but again, it may make perfect sense to them because they are playing a different money game than you are. 

I see the same type of money games being played in the world of investing.  A family buying Apple to save for their kids' college has a completely different plan than the day trader buying Apple to make a quick buck.  But yet, they both own Apple. 

We often get into trouble when we confuse our money game with someone else.  So why is spending time understanding your family's purpose so important?  Because it gives you a better shot of sticking with your own money game, thus improving your ability to lead the life you want. 

What money game are you playing?