Money isn't everything, but it sure is hard to
There are different money tips throughout this website so I won't get into all
of them here (that's my sneaky way of trying to get you looking at the other pages).
Considering how much time, effort and worry goes into money it is surprising
that people don't learn more about it.
What I want to do here is give an idea of what money is
about and how it works. The first of my money tips is to learn what it really
The basic idea of money is simple. Money is an exchange. Let
us go back in time, a baker has some bread and the farmer has milk so they swap
one for the other, good exchange. What if the baker doesn't want any milk, what
he needs is some firewood for his oven. Now they could both head off to the
woodsmans house but that would be a waste of the farmers time, he doesn't need
wood. So the farmer could write a note saying he will give the woodsman milk if
he gives the baker some wood.
There you have the first piece of
money. It would be easier if there was something that everybody would agree was
valuable and could exchange it for what they needed. This could be gold, silver,
jewels or whatever and these formed the earliest exchange items.
money is based on that, and also a lot of trust. Now we accept a piece of paper,
government approved, in exchange for our valuables. We then expect the next
person to accept that same type of paper and this seems to work alright.
So where do all the money problems come from? In a word, overspending. Poor
control of money leads to money problems. I have more on this in the page
There are few more money tips there. For now I will continue with what money is.
Money and Energy
When you really get down to basics money is only an exchange for human energy.
You could throw hundred dollar bills in the air and it would not make the sun
shine any brighter, it will not make a tree grow faster. If I gave our dog or
cat a hundred dollar bill they would probably just rip it up. When you buy
something, say a car, what are you actually paying for? It is the human energy
that was required to build the machines that mined the ore, to smelt the metal,
build the car, do the advertising and so on.
Here is another of
my money tips, money is exchanged for human energy, human energy is exchanged
for money. This is most obvious when someone goes to work but there other ways
to use this data, please read the pages in the
Making Money at
Money relates well to energy. It gains power
when it flows. Here is an oversimplified money flow.
his car fixed, he gives Mark the mechanic $100 to fix the car. Mark decides to
give his girlfriend a present so gives the $100 to Ann the store owner. She
wants some flyers printed to promote her store so Pete the printer gets $100.
Now Pete can afford to have yard cleaned up and hires Jane. Jane's computer is
not working so she takes it to Ray who also fixes computers.
has happened here? Mark has earned $100, so have Ann, Pete, Jane and Ray. That's
$500 in earnings from one $100 bill! Of course it is more complex than that, the
tax will take a bite at each exchange. But then the tax money will be used to
pay someone to build a road or whatever.
If you view that as a money circle you will see that the money energy goes one
way and the people energy (goods or service) goes the other way.
Does this mean that the money should always be flowing? Not really, some of the
money energy should be stored for future use, like a battery stores electric for
future use. More money tips, try to store (save) your money where it can still
move, like an interest bearing savings account or guaranteed investment
certificates. Money stored under a mattress really is wasting its potential.
If you are having money problems I urge you to read
Then find out How
to be Rich.
Go to the top of the
Money Tips page.
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