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Everyone–well just about everyone–wants to be rich. Or at least richer than they are now. Chances are good this strikes a chord with you.

That’s fine (I like being rich), but allow me to pose a few questions for you:

• How rich do you want to be?
• Will that be enough for you if and when you reach that goal?
• How do you measure wealth? Is it a number or a lifestyle? Is is security, peace of mind or all of the above?

I ask these questions because they are key to one thing that is more important than your level of wealth: it is your definition of it. Which leads to my belief that rich is a religion. I say this not from the perspective of worshiping money, or devoting your life to being financially rich with the kind of passion you would bring  to pursuing your faith. No, I mean all of those who are truly wealthy, who thoroughly enjoy their lives, who have the freedom and the protection that comes with being rich, treat money not as simply currency but instead as a means to afford  to live life as they choose.

If you choose to treat rich as a religion, you will do the following (and benefit from it substantially):

• Treat money with respect. Before you plan how much of it (your salary, dividends, etc.) you will spend, decide what percentage of it you will save. Spending is easy, but resisting the urge to spend all or (far worse yet) more than you take in, requires discipline and determination. Those who practice the religion of the rich apply both.
• Always favor appreciating assets over those that rarely, if ever, grow in value. Clothing, cars, gadgets–virtually all depreciate over time, often immediately after they are purchased. Yes, we have the right to indulge ourselves in things that make no fiscal sense, but they should comprise the minority of what we spend, as opposed to an addiction that gobbles up most of our disposable income. (Practitioners of the religion of the rich never have a closet full of designer clothes and a bank account that is bare.)
• Engage in zero-based budgeting. Think of this as a blank slate upon which to base your financial life. In traditional terms, we tend to expect to earn more each year and, in turn, to spend more. But if we are fortunate enough to earn more, we should (as rule number one reflects) first and foremost save more. And for the purchases and other expenses to which we allocate our income, the religion of the rich requires that we always look for ways to save. Not to build, even marginally, on our base of spending, but to reduce it.

This should cover budgetary  items large and small:

• If you spend $10 a day on lunch at work, can’t you reduce this to $7? Or even $5? The savings can add up to more than $1,000 annually.
• Assume your auto lease has come to the end of its term. If you were spending $279 per month, you may be tempted to step it up 10 percent or so, taking you into the $300 per month range. But zero-base budgeting requires that you forget you were spending $279 before and that you scotch the idea that it’s always time to trade up. Instead, look for the best deal on a solid car that can be leased or purchased for less than the automobile you are turning in. Best of all, this provides more money not to spend but to save. (Remember we save first, spend second.)
• Related to this, look for special opportunities that emerge out of nowhere and capitalize on them. Case in point: mortgage interest rates are at or near historic lows. Yes, it may be easier to simply stay with the mortgage you have now, but the religion of the rich is not about easy. It is about respecting money not for its status but as a vehicle for funding the life you choose. Searching for a lower rate now is almost guaranteed to put more money in your pocket–or better yet, in your bank account.

I am not a Puritan but I live in a small town founded by them. An historic town, Bedford, New York, where their spirit still lives. They believe that our money is never really ours–we are simply holding it until it all goes back to God. While we have stewardship over it, the religion of the rich obligates us to do everything to put it to its highest and best use.

You don’t weigh money by the pound or the number of zeroes in your account. Instead, you measure it by the impact it can have on your life.

Find out more about MSCO and Mark Stevens

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