Wednesday, September 10, 2008

Financial Intelligence – Part XI

On Miserliness

Thus far, this series of posts on Financial Intelligence has extolled the virtues of being frugal. Yet, there must be a balance in all things and one must not be frugal to the point of being miserly.

In his book Buddhist Economics
, Ven. P. A. Payutto cautions against the dangers on being overly miserly. The information below is extracted from Chapter 4 of his book.

What are the Three Evils Associated with Wealth?
Obtaining wealth in immoral ways and using it to harmful ends are two evils associated with wealth. A third is hoarding wealth -- refusing to either share one's wealth or put it to good use.

Tale of A Scrooge

In this story, the Buddha recounts the evils of miserliness:

At one time, King Pasenadi of Kosala visited the Buddha. The King told the Buddha that a rich old miser had recently died leaving no heir to his huge fortune, and the King had gone to oversee the transfer of the miser's wealth into the kingdom's treasury.

King Pasenadi described the amount of wealth he had to haul away: eight million gold coins, not to mention the silver ones, which were innumerable. And, he said, when the old miser was alive he had lived on broken rice and vinegar, dressed in three coarse cloths sewn together, used a broken-down chariot for transport and shaded himself with a sunshade made of leaves.

The Buddha remarked:

Foolish Use of Wealth
‘That is how it is, Your Majesty. The foolish man, obtaining fine requisites, supports neither himself nor his dependents, his father and mother, wife and children, his servants and employees, his friends and associates, in comfort.

He does not make offerings, which are of great fruit, and which are conducive to mental well-being, happiness and heaven, to religious mendicants.

That wealth unconsumed and unused by him is confiscated by Kings, stolen by thieves, burnt by fire, swept aside by floods, or inherited by unfavored relatives.

His wealth, accumulated and not used, disappears to no purpose. His wealth is like a forest pool, clear, cool and fresh, with good approaches and shady setting, in a forest of ogres. No-one can drink, bathe in or make use of that water.

The evil person, obtaining wealth, neither uses it nor lets others use it, like a forest pool in a haunted forest -- the water cannot be drunk and nobody dares to use it.’

Wise Use of Wealth
‘As for the wise man, having obtained fine requisites, he supports himself, his mother and father, his wife and children, his servants and employees, and his friends and associates comfortably, sufficiently.

He makes offerings, which are of great fruit, and which are conducive to mental well-being, happiness and heaven, to religious mendicants.

The wealth that he has so rightly used is not confiscated by Kings, thieves cannot steal it, fire cannot burn it, floods cannot carry it away, unfavored relatives cannot appropriate it.

The wealth rightly used by him is put to use, it does not disappear in vain. His wealth is like a forest pool not far from a village or town, with cool, clear, fresh water, good approaches and shady setting. People can freely drink of that water, carry it away, bathe in it, or use it as they please.

The wise man, obtaining wealth, both uses it and puts it to use. Such a person is exemplary, he supports his relatives and is blameless. He attains to heaven.’

‘Your Majesty, those people who, having obtained vast wealth, are not intoxicated by it, are not led into heedlessness and reckless indulgence which endangers others, are very rare in this world.

Those who, having obtained much wealth, are intoxicated by it, led into heedlessness and reckless indulgence which endangers others, are truly of far greater number.’



The one thing worse than being a miser is using one's wealth to inflict pain and suffering on others. I think the miser is driven by fear. The fear of loss. Its the same fear that drove Qin Shih Huang, the 1st emperor of China, to bury treasures and living people together with him in his grave. Many of the treasures were then stolen by grave robbers. Fear is a pitiful condition.


Dear Damien,

You are right!

After achieving so much, the Qin Emperor failed to realize that life is transient and he could not defy the will of Heaven.

Perhaps he really thought that the various poisonous elixirs he consumed could render him immortal.

Fear of death caused him to act unwisely. His empire eventually crumbled after his death.



I remember reading The Millionaire Next Door. The writer was surprised to discover how frugal these millionaires are - they drive old motorbike, live in a house bought 20 years ago, and live without doodads and toys around.

Those who are not millionaires buy things one thing after another not knowing they're being eaten alive.

Look can be deceiving...


Dear Zul,

Yup, self-made millionaires usually get rich by being frugal and spend their money wisely.

I hope our schools do include financial literacy in their syllabus. It's important that all children should learn about money management.



Avatar, seems like we do have many common interests, though i never blog on financial stuffs.

I must say this posting is great.

And may we all be wise and not a fool when accumulating wealth.


Dear amethyst213,

Hi! Thanks for dropping by. Glad you found the post interesting. It's never to soon to start thinking about money management.

Your blog is pretty interesting too :)


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