Smart Reasons to Save, Use and Invest Money

Money Is Just a Tool

Money is just a tool of exchange, nothing more and nothing less.

I watch actors and “rock stars”/rappers worship money like it has more meaning than the numbers printed on paper… but it doesn’t.  I also see people claiming that it’s the devil’s hands and the root of all that is evil. However, this in my viewpoint, is just silly too.

As ornate and fancy as the print on the paper can be, it’s really just paper with ink on it.  It doesn’t really have much value other than what we say it does and believe it has.

So what is money?

I personally like to think that money is similar to that of a translator for two different language speaking countries.  A translator would convert the meaning of one of a languages into the other language and visa versa,  so that both parties benefit.  Money serves as the same type of instrument!

Much like the translator, it exchanges value from one source to another source and visa versa.

Money Tool Exchange Example:

Let’s say that you are a piano teacher.  Well, you provide value to aspiring pianists, but a dentist isn’t going to work on your teeth for that skill.  Fortunately, he’s willing to accept the money that you were paid for performing the skill that you did, so you don’t have to perform any acts of bartering to have cavity free teeth.

The discussion and definition above makes money sound very linear in that you work x hour, and society pays you x hours.  Money is linear for most people, but society (or the marketplace) doesn’t always know what rate to pay you for your skill(s).  In fact when the economic principle of supply and demand come into play, you can make a tremendous amount of money if you aspire to.

Like gold, if your skills and abilities are special, you will be able to get more money for those skills while working the same amount as others!

If you don’t continually look and experiment, you’ll just be another cog in the machine of life.  And while being just another cog in the machine of life isn’t a bad thing, you won’t get rich that way either.

Many of the rich have money tools working at the same time in different areas.  That way they even make more money, versus someone who just has one job and no investments.

So I say, make the process of making money a priority, try to figure out more ways to make money by developing a highly paid skill or using multiple money tools at the same time.  Perhaps investing and having a dividend/interest stream of money, or working multiple jobs, or rents for owning real estate…

What do money mean to you?


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23 Responses to Money Is Just a Tool

  1. I agree, money is just a medium of exchange, and should be based on voluntary agreement, e.g. it is what we say it is, from cowrie shells to pizza slices.

    • Very true! Shoot, I remember in some cultures they even used heavy knifes, seashells, bushels of rice, etc for money…

      Still, it beats bartering, in most cases!

    • Wow, today is your Blogiversary!!! How cool, you’ve got a great blog Kris, we all love your stuff! Congratulations!!!

  2. To me, money is security – as a means of exchanging it for goods and services that I need to survive and live with basic modern comforts. That’s the core of it.

    I know a few (one in particular) that strongly believe that is equals success and accomplishment. There are many that view money as a scorecard in that way, and that’s fine if it works for them.

    For me, it’s primarly about security and making sure I can survive. It’s more defensive in nature than offensive. Of course, as in sports, sometimes the best offense is a good defense:)

    • I think that once you get past a certain point with money, it does become a game, but then once you get so much, it no longer matters. This is probably why Gates and Buffett are able to give half of what they have away without batting an eye.

  3. Although money is important to me, I view it as part of the game. It is a medium of exchange and a scorecard too. I like what I can do with it. Things like investing, spending at discount and multiplying it. I am fascinated with what I can do with money my whole life.

  4. Like the others, money offers security and it also offers freedom. If you’re not living paycheck to paycheck and absolutely abhor your job, having extra money gives you the choice to be able to quit before having something else
    lined up first.

  5. It’s hard to say what money mean to me. I guess the same as others – security and comfort. It’s also a way to make more money. If we have money saved up we can invest it and let it grow.
    At some point, I hope I’ll have enough to not worry about it anymore.

    • Based on reading your blog, it sounds like you are well on your way to being financial secure/independent!!!

      Personally, I don’t have enough money yet for it to be a game, but it would be nice someday to think of it that way, we’ll see…

  6. Wow! We are on the same wave length! I was just writing a draft entitled that Money Can’t be Good or Evil (i.e. since it is just a tool) . Between this and the debt payoff – we have to check with each other lol

    • lol, yeah, that is funny.

      I so agree money definitely isn’t Good or Evil, you can all ways expand on what I wrote… just don’t forget to link back to me (lol)