Principles are important. Anchoring actions to a solid set of principles provides a foundation for stability and sustainability. Both of these are important for the longevity for any society. Because money is such an important part of everyone's life, it we would do well to anchor it to a set of principles as well.
There are a set of principles that if applied to all of life will help us understand the world around us because they align with natural law. While there are literally dozens of principles we could look at, there are ten that are considered "master principles." Most, if not all other principles will find a home as a sub-set of these ten master principles.
Principle #1: Transcendence - this states that there is indeed a hierarchy of ideas and beliefs that define and place limits on behavior and thus serve to unite society.
Principle #2: Jurisdictional authority - This states that the oversight and enforcement of principles falls within specific jurisdictional boundaries and that those boundaries must be honored if a society is to remain sustainable.
Principle #3: Separation of power - This in enshrined in our Constitution for a reason. Man inherently seeks power beyond his capacity to manage it within the constraints of their jurisdictional authority.
Principle #4: Individual engiftment - Each person has gifts and talents that need to be developed and given in service to others. The division of labor (of which money plays a central role in enabling) dramatically increases the reach and power of our engiftment.
Principle #5: Localism - Resource allocation and problem solving is best done at the most local level possible. Local leaders understand the unique needs and challenges faced by their community.
Principle #6: Service based power - Using delegated authority and power to serve those over whom you have been given such authority and power.
Principle #7: Limits - These protect us from being harmed by, and from harming others. They should be appropriately applied to all jurisdictions.
Principle #8: Justice - People are rewarded and punished based on their specific actions. Individuals and organizations are personally responsible for those actions and the resulting consequences.
Principle #9: Results based reality - We must deal with what actually results from our actions, and not give undue weight to intentions. Theory must be proven or disproven in the real world.
Principle #10: Trust - Relationships between persons, organizations, governments, and systems that govern society must be built on trust. The measure of the strength of trust is how much pressure the relationship can withstand when challenges arise.
The reality of the impact of these principles in all of life cannot be overlooked. As I begin to build content that looks at what money should and can be, we must have a firm understanding of the role of these principles in all of life. Therefore, I'd encourage you to read through the list again and consider their application in your life individually.
- How do you see these principles at work in your life?
- That of your family?
- Your business?
- What happens when they are upheld? Violated?
Only after seeing the reality of their importance in all of life should we consider how they apply to money. The next post will start that discussion.