“Money is a terrible master but an excellent servant”
In this article, Fatimata KANE (ESSEC Business School, Master in Strategy & Management of International Business, 2022-2023) comments on a quote by Phineas Taylor Barnum about money management.
“Money is a terrible master but an excellent servant.”
Analysis of the quote
This quote by Phineas Taylor Barnum reflects the idea that while money can be a powerful tool to achieve our goals and desires, it can also become a source of stress and anxiety when we become too attached to it. The key is to use money as a servant to achieve our objectives, rather than allowing it to become our master and controlling our lives.
About the author
Phineas Taylor Barnum, also called P.T. Barnum, was an American showman and entrepreneur who lived in the 19th century. He is best known for founding the Barnum & Bailey Circus, which became known as “The Greatest Show on Earth.” Barnum was also a politician, author, and philanthropist, and he is famous for his promotional skills and his ability to attract audiences to his shows through various forms of advertising and publicity stunts. However, some of his displays, such as the exhibition of people with physical abnormalities or disabilities, have been criticized for being exploitative.
Financial concepts related to the quote
Financial Independence
The concept of financial independence is related to using money as a servant rather than a master. It involves achieving a level of financial stability and freedom where you have enough resources to support your desired lifestyle without being overly dependent on a job or other external factors.
Budgeting
Budgeting is a financial concept that involves creating a plan for how you will spend your money. When we use money as a servant, we create a budget that aligns with our values and goals, and we use our resources to support those priorities.
Opportunity Cost
Opportunity cost is the concept that every decision has a cost, and we must weigh the potential benefits against the potential drawbacks. When we use money as a servant, we make conscious decisions about how we spend our money, considering the opportunity cost of each option.
My opinion about this quote
I strongly agree with P.T. Barnum’s quote that “Money is a terrible master but an excellent servant”. While money is an important resource that can help us achieve our goals and live our desired lifestyle, it should never become our primary focus or source of stress. Instead, we should view money as a tool that can support our values and priorities, rather than allowing it to control our lives. By using money as a servant, we can achieve financial stability and independence, create a budget that aligns with our values, and make conscious decisions about how we use our resources to achieve our goals.
Why should I be interested in this post?
Financial literacy and money management philosophy are directly touched upon by this quote, which is why it could be of much interest to you, as a business school student.
Related posts on the SimTrade blog
▶ Federico MARTINETTO Money never sleeps
▶ Federico DE ROSSI The Power of Patience: Warren Buffett’s Advice on Investing in the Stock Market
Useful resources
Learn more about P.T. Barnum (in French)
About the author
The article was written in April 2023 by Fatimata KANE (ESSEC Business School, Master in Strategy & Management of International Business, 2022-2023).