Money Makes the World go Around
A child was playing with his friends. They needed to work out how they could exchange the various toys they had. “I think I have the answer!” said one boy. “We all get 100 points. We can then bid for the toys we want. The highest bidder gets the toy. When you run out of points you cannot have any more toys.”
“Sounds the same as money to me,” said one astute child.
In the ‘good’ old days people relied on barter to get the goods and services they needed. They traded. They exchanged something they had for something another had. Today we trade money for what we want. Same thing! If you have no money or are in debt you are in dire straits.
Money makes the world go around is a popular song from the musical Cabaret and it hits the nail on the head. Everyone in most countries of the modern world wants and uses money.
We can explain what money is in 3 ways:
1. A form of exchange in the form of coins and bank notes
2. Assets and resources owned by someone or something
3. Payment or financial gain.
The word money entered the English language via the Old French word moneie and that came from the Latin word moneta. Moneta comes from the verb monere which means to warn or remind. The goddess Juno was originally called Moneta. Her temple in Ancient Rome minted money. The word mint means a place where money is coined. Not many citizens owned the minted coins.
Generally speaking all countries have their own money (currency). All governments issue coins and paper notes to circulate in an economy. There are severe penalties for those who produce unlawful (counterfeit) money. Different currencies are traded on the foreign exchange market which is one of the most heavily traded markets in the world.
Let’s look at the role of money in our lives.
The first thing to get is money is an idea. The amount of money someone has does not determine their worth as a unique human being. The amount available is limitless. However the amount of money in circulation abides by rules determined by economics. Its value is determined by authorities and can change overnight.
Managing money is a skill everyone needs to learn.
The idea of money is an extraordinary one and when understood makes life fairer for all.
How you can manage money and get out of debt.
- Be responsible for your life. Educate yourself. There are many ways to earn money.
- Become emotionally neutral about it. It is a means of exchange. It is a necessary part of life. You deserve to have it.
- Realize you can live a wonderful life without getting caught in the material trap. Think before you spend.
- Save. Pay yourself first and put some money away for a rainy day. It is amazing how saving small amounts of money quickly adds up.
- Learn money skills. Budget.
- Manage your money by learning about all aspects of it. Today education about money is freely available. Money is one of the most emotionally charged concepts in the world. It won’t go away.
Learn to use it wisely and you will be in charge of it, not it in charge of you.
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