The Value of Money

Imagine Having a Million Dollars.
That would be great - right? 

Image all the things you could do with that money.

Now imagine having all that money, but you are a small and deserted island, far from anywhere and not even close to any shipping routes. So how much is that money worth to you now?

We take money for granted, but money is only as good as its buying power. Once you understand that, you’ll have a whole new appreciation of how a capitalist society actually works. You’ll also have an appreciation for the difference between the price of something and the value of something. There are 10 ways to acquire money  As a society, we are always on a quest to make money - to make more money - to make more money than everyone else. It's in our nature. It's who we are. It’s what we have been taught to believe. So how can we get more money?

Here are the 10 ways to acquire money - 

1. Find it - this is simple enough. Someone lost a $5 bill. You find that $5 note laying on the ground, and suddenly you are $5 better off.
   
   
2. Win it - you buy a lottery ticket or bet on a horse, and you happen to win. Well done!
   
   
3. Inherit it - a relative leaves you some money in their will.
   
   
4. A gift - someone you know generously gives you some money.
   
   
5. Steal it - you knowingly take money away from someone else without their knowledge or permission.
   
   
6. Print it - you get the right materials and equipment and start printing your own money.
   
   
7. Invest it - you have money which you lend out. At a later time, you not only receive the money you initially lent out, but you also get an agreed-upon amount for the cost of lending that money. It’s called Interest or Return on Investment (ROI).
   
   
8. Get it in exchange for something you have - you decide to offload belongings that you no longer want or need, and so you decide to have a garage sale, for example. While the money you receive may be small in comparison to what you originally paid for it, it's a way to get money. A variation of this includes renting something in exchange for money.
   
   
9. Earn it - you go to work for an employer, and you are compensated for your time in the form of wages. This is what's known as - doing an Honest Day's Work.
   
   
10. Get it in exchange for something you created. You grow crops, or you mine ore, or you carve ornaments out of stone, or perhaps make furniture out of wood - whatever. Regardless, when you sell what you have accomplished, you have actually 'created' money.

Of this list, all methods 1 through 9 involve money that is already in existence.

Money gained from Methods 1 through 4 has no value.

Each of these methods falls under the category of "Something for Nothing", therefore the money has no real value. It may have buying power, but that's all. It is only as good as what you spend it on. No effort or sacrifice was made to achieve that money. It's because of this lack of earned value, people who win huge amounts of money on a lottery for example, are often broke soon after. No effort went into winning or earning that money, and therefore nothing was lost when it was squandered.

Money gained from Methods 5 and 6 are illegal.

Whether it's stealing money, gaining money by fraudulent means, or by just plain printing it - these methods are illegal. However, it's interesting to note that when a Government needs money, they 'take' it in the form of taxes from those who have created it. Sometimes, Governments print money when they do not have enough to pay off a debt. The way to tell when they do this is when the currency is devalued.

Money gained from Methods 7 through 9 has value.

Each of these methods involves some sort of sacrifice or effort associated with them. Therefore, this money has earned value for the person who sacrificed their time or exerted that effort. However, this money is money that already exists - it has only exchanged hands.

Only Method 10 creates money.

You start with nothing, but from raw materials you make something of value, and then you sell what you made. For example - someone pays you $5 for that item you just made. You started with nothing, but now you have $5, AND the buyer has something 'worth' $5. Or for the mathematically inclined - 'Blood, Sweat and Tears' + $5 = $10. This is probably where the term, 'Sweat Equity' comes from. However, on an ethical note, whatever you created, you first took from the earth. It only seems right to repay nature for what we took. Perhaps we should think of it as ‘borrowing’ from nature.

There is no magic money.

Money does not grow on trees. Economies that create work just to keep people employed, are building a house of cards. One hic-cup and it all comes tumbling down. Just to put all this into perspective. Just after WWII, countries had to rebuild - both figuratively and literally - and so people rolled up their sleeves and got to work.

Believe it or not but those were happy times. During that period, people were ready willing and able to work. Of course, rebuilding needs to be administrated, and leaders took all the credit for the achievements. Today, our economic society is somewhat inverted. We have a few people supporting the rest of the population. They are being overly administrated while an ever increasing number of people want to take credit for the achievements of the few.

Putting it into perspective.

If your business involves creating something that people NEED as apposed to providing something that people WANT, your business will have an inherent strength and a foundation on which to survive. If your business provides necessary support to these ‘front line’ businesses, you will be in a strong position to survive. If your business provides only what people want, then you will need to plan for a worst case scenario.