What is Money?
Buying and Selling
Most definitions of money will state that it is a form of exchange, measure of value or method of payment. When buying or selling goods and services, money is spent or received. For many of us, our idea of money revolves around what we can buy or do with money. After all, we are constantly advertised the latest and newest things to buy and know exactly how much money we need to bring them home.
Money Views
The way we view money differs from one another because of our experiences with it. Depending on our money situation growing up, money can be scarce or abundant to us. How we view money has a direct impact on how we handle it. To some, money can feel confusing or stressful and to others, it can represent success or power. On the other hand, some would even say money separates us because social classes are determined by it. Money is one of those love-hate things in life. We may love what money allows us to do: buy a car, take a trip, splurge on ourselves, etc. Or we may also hate how we earn money: working 9-5, having 2+ jobs, etc.
Money Money Money
So, what is money? Is it a number like $100 or a goal like $2,000 for a trip or simply currency or cash to conduct transactions? Well, it can be any of those things. However, to me, money is a tool to create the life we want. A tool is a device that aids in accomplishing a task. These tasks can be generational wealth, early retirement, debt payoff, vacation, investing, and so much more.
Tools
Money, just like other tools, has to be used properly to work effectively and efficiently. If you needed to nail something to a wall, would you use a screwdriver or hammer? A screwdriver is designed to screw and not nail. You can force it to work, but it won’t be very effective or efficient. On the other hand, a hammer is designed to nail and will be effective and efficient.
When money is used correctly, it works for us towards our goals and creates the life we want. Now that you know money is a tool, you have to learn how to use it correctly. This tool also requires skills such as budgeting, saving, investing and many others. No matter what task you want money to accomplish for you, you have to become WIZE with MONEY and use it as a tool to our success.
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If you are looking for a more traditional definition on money, checkout Investopedia.
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