Money. It conjures up so many feelings.
- we don’t have enough
- it's the root of all evils
- money = freedom
- money = happiness
- it's stressful
What words come to mind for you when you hear the word “money”? Let us know in the comment section below.
For so many of us, it’s a scary topic . Some of that is because we don’t have a fully operative definition of the word.
so what is it really?
Simply put - money is a TOOL that allows us to buy the goods or services we need. Few of us can do everything well - so we use money as a medium of exchange. We get paid for our services - and then in turn we use what we are paid to buy other things. In a sense, money is something that allows us to specialize within the context of the broader community.
Used wisely, it can enhance our life. Used foolishly, it can be a big stressor.
The value associated with money is based on a social contract - between a government, the citizens, and how others view the ability of a government to guarantee the value of money to be used in the exchange of goods and services. If people don’t have faith in the ability of the government to back the value of money, it will become less valuable, and things will cost more. This is part of a concept known as inflation.
Money beyond what you need for the goods and services necessary to survive would be considered excess. With these funds, you can save for future needs. You can give back to the community by supporting causes you care about And to build true wealth, you can invest in things such as stocks, bonds, real estate, new businesses, etc.
If you can master money management, you may find a lot of stresses in life go away. Whatever you do, don't let money control you. Find ways to control your money.