Money is only a Tool-Use it to Your Advantage
What is Money Good For?-solving financial issues. Money is the medium of exchange for goods and services. Learn how to manage money and how to avoid a crisis.
“Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver”, … Ayn Rand.
Depending on whom you ask, and what your present financial situation is, money is a concept that keeps creeping up in our daily activities. Sooner than later, we are all made aware of the concept of money and its importance to our lives. To the well-heeled, this idea needs little selling, … pun intended. To the less knowledgeable about money, it is a subject matter that needs serious concern and attention.
Money Does Not Grow on Trees
Money is not paper that grows on trees, anymore. As a matter of fact, paper money is now as rare as hen’s teeth, in all first-world economies. What does it mean that money is only a tool? Money is a tool or object that we use for exchanging goods or services. In the olden days, before money was invented, people bartered. A man would barter 3 sheep for 1 calf and 2 bushels of rye or oats. With more and more transactions taking place, in the villages, between the people living there, this method became very complicated and not very practical.
Forget about your Feelings
I will not expound on the science and theory of money so much, but rather bring to your attention, what you have to understand about money and its purpose in your life. I was brought up in comfortable poverty. Poor people, sometimes through no fault of their own, know very little about money. Before your feelings get hurt, this is not a beat-down on the poor. I was poor, … so I know lots about poverty.
Money, its history and its use should be of concern to everyone. Hence, its lack of importance and appearance in our schools and learning institutions. You are certainly not going to learn anything useful about money and earning a living in school or university. You will only learn how to become an obedient worker, just smart enough to operate the machinery, and more than everything else, you will mostly learn how to get into debt and keep that chain tied to your neck, throughout your lifetime.
If you were brought up with little knowledge of money, don’t blame anyone for this, especially your parents. They have brought you up the best way they knew how with what they had. The rest is up to you. Get yourself educated about money, and learn how to make it work for you.
A Store of Value
Money is a store of value, a medium of exchange, a unit of account, and sometimes, a standard of deferred payment. If these terms are foreign to you, the greater your need to embark on a journey to increase your knowledge on the subject of money. If you are of the working class or the middle class, you have probably been taught that money is dirty, an object of greed, and the root of all evil. No wonder you’re having so much trouble with money. How can you attract something that you have so much animosity towards?
This is not an essay on the philosophical concepts of money or on the morality of its possessors. It is simply a statement of your need for money to survive in today’s society. The forms of barter that existed in the olden days have outgrown their usefulness, and today’s money system is undergoing rapid change in the form of electronic accounts and cyber currencies.
Gone are the days of bartering three sheep for one cow, or exchanging fourteen seashells for a bushel of wheat. Get with the times, and do it soon. If you are always broke days before payday, your credit card is maxed out, and your friends won’t lend you a five, it’s long past time to learn what money is, and what it is used for.
Learn to Earn
Learn to earn, but, just as importantly, you must also learn to budget, and learn how to save. We have all been told by our elders, to save for a rainy day. This is time-tested wisdom. Every once-in-a-while a little or a lot of rain will fall on our life. This is why we all need to set a sum of money aside as an emergency fund for when the SHTF.
Stop spending every penny you earn. Learn how to budget your money. How much did you earn last month? How much did you spend? People with money know the answer to these questions. You don’t, and that’s why you’re having problems with money. Forget about fancy cars, yachts, and helicopters if you’re living from paycheck to paycheck.
Get your feet on the ground and first of all, make a list of how much you earn, AND how much you spend. Set 5%, or even 2%, of your earnings, after taxes, for an emergency fund. Making your own coffee at home, and bringing it with you to work or school, can easily save you 100 dollars per month, … that’s 1200 dollars per year!
This is how you have to begin thinking. If you’re single, it’s o.k. to be a bit selfish and carefree, but one day you’ll have a family to care for, … start planning now.
Keep Your Feet on the Ground
Stop dreaming crazy dreams, … and add up the cost of your rent, lights, heat, food, clothing, transportation, etc. If you’ve noticed, there’s no entertainment or “fun” in there yet. This is only a partial list of expenses if you are single. Now imagine having a family to support as well. Imagine a newborn child popping up “unexpectedly” into this equation.
A very high percent of marriage failures and divorces are the result of money problems. There is a ton of useful money education and instruction on the web for you to learn from. You have to educate yourself, no one is responsible for this except you. Learning about money ranks high on your list, right up there with attitude and gratitude.
The Rewards
Studies have shown that the more affluent, live longer. Why? Less stress, better food, better access to medical care. I’m not talking about the super-rich, I wouldn’t know. I’m not super-rich. I simply work hard for my daily bread and manage it to the best of my ability. I had to learn this, and I continue to do this every day.
These days, I’m reading an excellent book, written in plain language, titled, “Basic Economics” by Thomas Sowell. This book is a brilliant, easy-to-understand narrative on money, and how it works. In it, Thomas Sowell, explains how the money system works, with modern examples, and in easy to understand language.
Stop Thinking that Money is Evil
Money in itself is not evil. Money is the most popular means of exchange for goods and services, in today’s marketplace. Change your mindset, and change your life.
Discard your attitude about money being vile and dirty. Focus on what money can do for you. You can’t help anyone if you’re always broke, you can’t even provide for your family, and that’s your primary responsibility. That’s the big word you have to learn. RESPONSIBILITY.
Discipline Yourself
Control over your financial situation brings more peace into your life. When you feel better, you have a better attitude, and everyone wants to hang out with you.
Work hard and play hard. Get a second job, work from home.
At the end of the day, you are working for yourself, … and yes, that means you!
I look forward to your comments and tips on how to better manage my money. You’ll be surprised at the many good suggestions you can come up with, on how to save money.
Don’t burn your candle at both ends!
Hello, I really want to appreciate your effort in putting together this website and writing this article. Money indeed is a tool. I think there is a need for every one to be aware that money only serves as means to get your needs met.. The guidelines that you have highlighted in this article helps a lot on how to utilize money. I have a wasteful cousin and I think he needs some guidance.. I am sure this can help him
Hi Benny.
The subject of money, and our education on it, is very important.
It plays an important role in our daily lives. Sticking our heads in the sand, and calling it evil, does not help anyone. I’m pleased to hear that you are helping your cousin.
Paul
I think that you have furthered my education on money . I think also that people have no idea what to do with it.
It’s one of the things I think should be taught in school. Not college but free school.
When people understand what money is and how to use it , then they may be happy with it.
You had some good points.. thank you …shannon
Thanks, Shannon, for your comments.
At the end of the day, it’s up to us to educate ourselves. Education is too important to be left to the school system, and besides, there are many areas where their teaching methods leave a lot to be desired.
You cannot attract money if you think it is vile or evil.
We need money for all our purchases.
Save some for a rainy day!
Paul
Hi and thanks for your informative article,
You raise a number of good points regarding the value of money and it’s place in a society where many believe it causes more harm than good. Coming from a background where money was not readily available, I feel that you would have most likely developed ways to enrich your childhood experiences without money; I also feel that you would have much drive and motivation to improve your financial situation. Do you think that those who come from more affluent backgrounds can develop this drive in other ways?
Good Day, Marketa.
Necessity is the mother of invention.
Drive is something that I am beginning to believe we are born with. This is my opinion only, and not based on real science.
To cite some examples, … the super motivated in sport and business, seem to be born with this characteristic, and many others that I have gone to school with, or grown up with, simply have no basic drives and are very difficult to motivate.
I’d be interested in hearing how you think about this.
I know quite a few people that are in dire circumstances, and yet they cannot be bothered to get out of their situation. Oddly, many are often insulted when you try to help them along.
Paul
I must say this is a very nice and interesting article it also very informative too as most people don’t know the weapon they have in their disposal,thanks for this article I know it would be of help to the public.but I would like to ask.as you said in one of the paragraphs under learn to earn,you said “learn to save” what are the preferred saving plan that you would advise one to go into?
Without knowing anything about you, or your financial situation, Dave, it would be unwise and irresponsible to suggest a financial plan for you.
This is why I stress your getting better educated on the subject of money.
Start by making a spreadsheet on your income and expenses. George S. Clason, in The Richest Man in Babylon says that you should KEEP the first 10% of everything you earn for YOURSELF!
Everything else seems to leave your hands and pockets.
Think of it this way, if you had only 10% of everything you’ve earned in your lifetime, you’d be a lot richer than you are now.
I only wish that I would have known this as a youngster.
Paul
Hi Paul,
Interesting article. I must admit I’ve never really sat down before and thought to myself “what is money good for”.
Money is 100% a tool which helps you deliver a certain type of lifestyle. The more I think about it though, money is a tool to provide freedom.
I completely agree that everyone needs to learn how to manage money & how to make it work for them, fortunately I’ve been able to send my son to private school and understandig finances is a larger part of their curriculum.
That’s my point exactly, Nate.
Learning about money and how to manage it more efficiently is of benefit to everyone.
We are too often told that money is “evil”. How can learn to appreciate its purpose and function in society with an attitude like that. Your knowledge of it got you a better education for your son, … how cool is that!
Paul
Hello Paul!
Yes, money is just a tool – but what a vital tool it is to us! We need it, we love it, we earn it, we use it… we strive for obtaining it and further to make our desires come true – when these desires need money. And sure, we should learn how to earn, we can say there’s also an art of earning money, and people who master this art are smart and lucky!
And yes, we need to be educated in order to know how to behave towards money as well. Losing the control of the way we use money is definitely an issue… as losing any kind of control is.
Money are good at plenty of things – this is a reality!
How do you like “Basic Economics”? Would you warmly recommend it to people who are starting affiliate marketing?
With best regards, Peter
Hi Peter.
Basic Economics by Thomas Sowell is an excellent book that’s written in simple, easy to understand language.
More importantly, it is filed with modern day examples to explain economics. Well worth the read, and there is also an audio version on YouTube.
Paul
Hello Paul. I think this article is one that needs to reach out to both old and young because a majority have the wrong concept of money. I have learnt over the years that money is damn good. It solves a lot of problems and can even make the world a better place if it’s in everyone’s possession. There’d be no robbing and killings for money.
I have really learnt alot about money from this post. I have learnt not to spend more than I have earned. I am the kind of person that saves money; when you decide to cook your own meal and economise the ingredients, when you don’t lavish money, when you don’t buy things that you don’t need, people will start calling you a greedy person.
From henceforth, I don’t care what they say. Life is not easy being alone,I wonder how it’d be when a lady comes in and when a baby comes in. Now is the time to plan ahead of time, learn, earn, save and invest for the future and rainy days ahead.
What kind of business would you recommend for a student?
Good Day, Mr Biizy, and thanks for reading my post.
Saving for the future is always a good idea in my opinion. There are many ways of earning extra income as a student, and it looks like you have a good approach towards life and improving your circumstance.
Paul
Before the age of 20, my concept of money was vague. I spend all the money I make, and I do n’t have any additional channels to make money. So until now I didn’t have any deposits. I am also looking for ways to earn extra money. Knowledge sharing may be a good idea. I should build a website to share this knowledge.
Good Day, Jax.
Thanks for reading my post. Knowledge of money is an essential skill that we all need to learn early.
Building a website, and using the web is a great way to earn an income.
Paul
Thanks for sharing this very important concept of money, this is the knowledge that is not thought in schools. So many of us go to school for just one aim – get an 8 am to 5 pm job. After getting a job, we feel all our expenses should be paid; but we end up been disappointed.
With our laptop by our side, we can control our finances, leave a healthy, and happy life. Saw your link to Wealthy Affiliates; that is the best platform to learn affiliate marketing and build a sustainable business.
Good Day, Parameter.
I like that you appreciate money and its purpose in society. There are many ways to earn it and affiliate marketing is one way of getting it done.
Hey Paul, Thanks for writing on money. In my views money is everything. We need money everywhere while going, while buying, while eating, for enjoyment etc.
We can attract money with positive vibrations. I know it is law of attraction.
We must have to put our action while attracting money.
Your article helped me lot. Thanks you Parveen
Thanks, Parveen.
Many people with bad attitudes about money are often ill-informed about its purpose.
What would we replace it with?
How would we carry out our transactions without it?
Paul
I appreciate you writing this post. I couldn’t agree more with you that money is not evil. I find it so strange that our society worships everything related with money but when you express your goal on working towards having a lot (or more) of it, you get stigmatized as being greedy.
Thank you for the book recommendation, I will check it out! 🙂
Thanks, Katja.
It is a double standard for sure, but I find that many of these people are not very inclined to work hard to improve their lot, and are bitter and resentful of people that do.
The book is a good one, and its author, Thomas Sowell, is well worth the read.
Check out his audiobook on YouTube.
Paul