Money & Power, a « complicated » relationship?

Working with HNWI and families for years, I was faced with the topic of power very early, as power, it seems, is inherent in money.

In the family office space, it is rather mandatory, or highly recommended, to ask the question of the representation of money and wealth to the family.

What does wealth represent for you?

As an answer, I have very often heard the word power, because to many people, wealth equals power. And many times, they will say something like « I don’t really like money, I just like the power it gives. »

And then it brings to my mind the next question :

What is power?

Of course there are many different views on the topic.

I choose this quote from Dr. Martin Luther King Jr. defining power as the ability to achieve purpose and effect change. I really like this definition!

“Power, properly understood, is the ability to achieve purpose. It is the strength required to bring about social, political, or economic changes. In this sense power is not only desirable but necessary in order to implement the demands of love and justice. […] Power at its best is love implementing the demands of justice. ”
― Martin Luther King Jr., The Autobiography of Martin Luther King, Jr.

When one thinks money equals power, it can bring amazing motivation for success, and this is not a bad thing necessarily.

Wanting to be successful and wealthy, therefore be powerful, just means we want to achieve a purpose and effect change according to our personal views and agenda.

But I think it is important to comprehend that the relationship we have with money, shapes how we behave regarding to our wealth, and this brings huge and often underlooked consequences in the family office.

Because, if you think wealth is power, will you be ready to hand over your wealth (your power) to your heirs? Who wants to feel powerless really? No one.

And if you think wealth is power, will you be ready to take this major responsibility at a young age, without having been prepared for it, while leaving your parent powerless? I don’t think so.

Again, if you think wealth is power, how can you trust anyone to handle it for you? Difficult one!

How will you feel when it’s time to share it? With a partner or a family member for example?

How will you feel at the mere idea of losing it? Or not being a good steward?

And this one for the managers like me : If you think wealth is power, how do you feel not being the one in full control of it? Doing the job for someone else to feel powerful?

This is how the whole story becomes complicated and can lead to potential desastrous situation in the family office.

Maybe is it time to see money as what it is

I believe it is only when you have a healthy relationship with money that you are able to handle wealth in the best way, whether you are the principal, or the manager, or anyone in between.

Money should be decorrelated from the emotions we often put in it, and should be seen as the simple tool it is.

We should find new sources of fulfilment outside money.

Power should appear when we are aligned with our values, allowing us to be meaningful and intentional. Once this is done, we can start seeing money as a servant for our purpose, a simple tool, not bad nor good, to help us in our journey if and only if we decide it is the best thing for us.

And this is why it is so important for everyone involved in this industry, to really reflect on their personal values, their relationship with money, their long-term objectives and their ultimate purpose.

Therefore, I definitely think this is the right question to ask :

What does wealth represent for you?