What is money all about and how important is it?
“Money, get away
Get a good job with good pay and you’re okay
Money, it’s gas
Grab that cash with both hands and make a stash
New car, caviar, four star daydream
Think I’ll buy myself a football team”
…………….. Pink Floyd – Money.
Hello again, welcome to my blog.
I am surely not a financial guy! I just take interest in understanding how money works, that’s all!
I am Andy Masaki, a blogger, and monetary advisor. I have dealt with quite a few disastrous experiences regarding money and personal finance in the past.
If you are new here, then let me tell you, that I filed for bankruptcy and spent days in both financial and emotional turmoil. It is, but because of my beautiful wife, that I have regained my life and finances. Her constant support always proved to be the only rail I can hold onto!
By filing for bankruptcy, I have learned a few things. One of them is definitely, the importance and meaning of money.
I understood, that money is all about a sense of belief and trust, that we humans have placed on a valueless object of interest, thereby assigning the object a defined value, purpose, and power of exchanging wealth and doing transactions.
Feeling confused? Well, so was I when I learned it this way the first time. This is the economic definition of money that any financial expert or educator will tell you.
I never quite, however, relied on this moral definition. I wanted something more, something practical, something that could easily explain its importance to a first grader and a retiree, at the same time.
Hence, I have sat down today with you all to resurface what money means, and what its significance is for real.
What does money mean in its most basic sense?
As, to the eyes of a child, it’s nothing more than paper strips and metal buttons, that looks funny with inscriptions all over.
In fact, in the present world it seriously is nothing more than that!
The intrinsic value of money is nil. It is just a belief we have, that these papers contain value, and signifies wealth.
The 20th century saw the rise of fiat money, where the money that had intrinsic values, like gold and silver coins, was dissolved by governments.
In its very basic sense, money is what measures time and work. You do hard work, invest your precious time, and in return get paid.
Even still in our cultures, we at times pay in other objects other than money. Say, for example, someone’s staying at a homestay, has to do daily chores, and in return gets food and lodging!
But, every time we can’t exchange foods and objects initiating a general transaction. The barter system definitely had its own flaws!
There was a need for something, that can replace each and every object in terms of value. And, with this something, one can technically ‘buy’ anything as per needs and wants.
So, money has the buying power!
Probably, this is the one and only important meaning that’s carried by it!
The importance of money in a realistic approach:
One could easily go out, and claim “that tree is mine”, “that mountain is mine”, “that river is mine”, “that land is mine”, and so on and on, but things would then get too chaotic. To be precise, things became very disturbing, if you look throughout the history of human civilization.
One fine day, the Crusades took place.
A few chapters back, Spartans invaded Athens, and then one day a bomb was dropped in Hiroshima, and things just went on….. till we came on the verge of establishing a unified monetary system, so that social wars can come to an end.
It’s like day by day we started to understand that we humans will be the sole walkers of this earth. And, we have this earth as our one and only resource. But the justified division of the resources among each and every member of the human race is the most important thing.
Hence, instead of claiming ownership via power, physical force and dominance, we have now started to ‘earn’, anything that we feel we deserve!
Money holds importance and meaning just when you believe in it. Money can represent even paper cups, instead of paper notes, and bullets instead of nickel coins!
But, we have invented the ‘paper notes’ form of money, just to make it as fast as possible! In the future, it is deemed, that we might not even have a physical currency!
Already cryptocurrencies and virtual transactions are making their way into the current trend. But that’s totally a different topic altogether!
Hence, money is what you want it to be. You give it importance, it has importance.
You see it is a colorful paper, it’s purely that then!
On a last note, all I want to say is, that majority wins! And, just like the whole world does, you should also believe and have faith in money, in order to continue galloping alongside other humans to a continuous expansion of civilization!