3 Unique Ways To Think About Money
Ask anyone around you what is money and you'll be hit with very surprising answers. If you ask a simple minded person, he/she might say money is money. An economist will probably say that it's a medium of exchange dictated by supply and demand. An investor will add that money is like an army that you send to the battlefield to capture more soldiers.
We all use the same thing but have different definitions of it based on our perspective and how we interact with it.
Money is Just A ToolMoney is a form of leverage. We know money is a means to an end. Once you get that money, you exchange it for something else (in most cases). Let's say I got paid $1000 for a work I've done, took that $1000 and bought a laptop with it. Now, I don't have the $1000 anymore but I have a laptop. Money is the means to get the laptop, in this example the laptop is at the end of the chain and the work done is at the beginning. Money is a vital part of the chain because it's the connecting link between the starting and the end but it's not the whole chain.
Work -> Money -> Asset Item
It is a tool you use to move value from one location to another. I got paid based on the value I provide at my job. Once I bought the laptop, I have transferred the value on to the laptop because it is worth the same amount as I was paid, $1000. If I liquidate the laptop, I can take that money and spend it on another thing, bringing the value to the thing I spent it on. So money is like a vehicle/tool that you use to transfer value from point A to point B.
No Money CapWell, Most of us have this idea that there's a limit to the amount of money we can earn. This stems from the idea of paying by the hour and that there's a limited number of hours we can work. Time is limited but money is not just time, it's numbers too and numbers are infinite. Nobody can actually tell what the upper limit of money is.
Since it's tied to value, the more perceived and real value there is, the more money there will be. In a technological age, innovation is happening rapidly. Our human minds don't know how to leave things as they are, we want to make it better. Burning desire to create something new. With everything becoming more accessible, more minds will have the opportunity to build what they want, more building means more value and more value means more money.
In simple terms, money keeps expanding based on value. Value happens through creativity and creativity is unlimited.
Who knows, we might see the first contemporary trillionaire in the coming decades :)
It's Never YoursBack to the laptop example above. I gave the money away for a laptop so the money is no longer mine. The laptop seller will also give away the money for something else and that person will also give it away for something else. And it keeps going on and on. Money is never yours, it's just your turn to hold it. The key is to always trade it for something more valuable than what you have it for.
This is what fuels the world economy; spending. Money keeps changing hands from one person to another. For the economy to be kept going, people have to be spending. The moment spending stops, the economy stops.
Money is constantly flowing with the flow of the market. Find the market where money is heavily flowing and flow with it, you just have to take part in the exchanging of money. Who's got your money and what are they looking for? Once they give you the money who are you going to give it to?
ConclusionHaving a unique perspective about money helps eliminate the burden of emotional attachment towards it. If you're emotional with money, it rules you and you'll have a hard time with it. See money as a tool that you use to transfer value across time and space. There is an abundance of money and one of the best ways to acquire it is by providing value. The more valuable you are, the more wealthy you can become.
Remember, money is never yours. It's just your turn to hold it. Keeping money-especially cash-is like pouring water on a desert, it evaporates quickly. The purchasing power keeps decreasing over time. Cash is king but not always.
Thanks For Reading!
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