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Why is money so important?

Why is money so important?

 

Why does money matter so much?


Should money and time be at odds with each other? What purpose does money serve?


Money is a tricky thing in modern society. Some people love it and want more of it all the time, while others hate it and say that greed is the root of all the problems in the world. We've had both of these points of view at different times in our life.


                                        

 money so important

Meeting people who live on both ends of this spectrum has taught me a lot. As is often the case with complicated issues, the truth is somewhere in the middle. Money is important because it can help you take control of your life, care for your loved ones, and give back to your community.


It can also assist you in getting rid of material desires and suffering. Money is important to society because it allows people to trade, which raises everyone's standard of living while reducing the need for trust. 


Money can be thought of as a way to store and transfer your hard work over time so that you can enjoy the results of your work. It's hard to say enough about how important money is to the growth of civilization, but even people who go to good schools don't learn this.


Money has gotten a bad name over time, which is sad, but it's for a good reason: the way money works today makes our society very broken. Money is important for getting richer, which is not the same as making a lot of money.


Wealth is about getting rid of your wants so you can focus on more important things in life than just surviving and having the basics. A wealthy person knows a lot about how to make and save money. They make more money than they spend and put most of their attention into saving money.


They're putting their work away for later use. Compare this to a doctor who makes a lot of money, lives in a huge house with a mortgage, and rents a Mercedes. Even though this person may make a lot of money, they also have a lot of debt in the form of a mortgage and rent.


This person can't enjoy the real benefits of money and wealth because of these debts, which are: No longer having to work If you don't have money, you have to work to stay alive. By getting rich and building assets that pay you without you having to work, you can make more time for other things.


You don't have to work a job you hate or spend 40 hours a week away from your family to meet your basic needs. Even if the economy is bad, losing your job won't leave you broke or worse. Money is important because it is a way to store wealth that is portable and easy to exchange.


How you spend your time is up to you. Time is what money buys. When we work 40 or more hours a week, we often get used to spending money when we have time off. We go to nice dinners and spend a lot of money on vacations. But if we live slowly, we can have the same or more fun with more time and maybe even less money. 


Things to be considered


If you only have a week off from work, you might consider buying that more expensive flight on Friday night and coming back on Sunday so you can spend as much time as possible in a faraway place. But if you can take care of yourself without spending much time working, you can take a cheaper flight on Tuesday and come back on Wednesday.


Things to be considered

You won't feel as much pressure to pack as much into your week abroad, and you might even be able to stay longer and see more without having to pay expensive tour agencies and hotels to plan your trip. ability to help your family and friends. 


When you have extra money, you can spend it on your friends and family and make your relationships with them stronger. You can help a friend get back on their feet if they need important surgery.


If your aunt is sick, you can stay with her instead of giving her a quick call on your way home from work after a long day. This is only possible if you save money in case something unexpected comes up. I worry less about money. Stress is a dangerous condition that almost everyone in the modern world has to deal with in some way.


It is linked to bad health, and more than 43% of adults are said to have bad health effects from stress. The Occupational Safety and Health Administration has even said that stress is a hazard in the workplace, and 83% of employees say they feel stressed at work. 


True wealth, which means not having any wants or needs, can get rid of this stress and the bad things it does to other parts of life. This could get rid of most of the stress in your life since money is the number one source of stress for most Americans. You'll be able to help your community more. 


Many of us want to help those in need and give back to our communities, but we don't have the time or energy to do so between work, family, and social activities that keep us mentally and physically happy, healthy, and fed. Money lets us spend the time we need to understand and help others, instead of just stopping by a food bank once in a while.


When you think about how money helps you, your family, and your community live well, you can see how important it is. But money can also be a powerful tool for making the world a better place if it is used in the right way. Why is money important for all of society? 


Money makes it easier for people to trade with each other, which leads to some people becoming specialists.


Money makes life better in many ways: It enables people to specialize. As in the case of the vineyard owner and the grain farmer, money makes it easier to trade, which makes it easier to specialize.


Every barter trade has a problem called "coincidence of wants." Both people must want what the other person has in order for the trade to go through. Money can be thought of as something that almost everyone wants. This makes trading much easier because you only need money to buy something, not some random thing that the person selling the thing also wants.


Money has made it possible to specialize over time, which has made goods and services better and more complicated. Imagine trying to make your phone by yourself. It took millions of experts and specialized pieces of equipment to make your phone.


All of these experts and companies pay each other money, which makes it possible for that phone to get to you through a complicated dance of global producers and supply chains. Even something as simple as a water bottle is made in oil fields and factories that may be thousands of miles away from where you live. 


People can make goods and services better when they can specialize. This allows for good trade with less trust. Small-scale societies can run without money and still be peaceful and productive by using favors, "I owe you ," and mutual understanding.


But as societies grow, it gets harder and harder for everyone to keep personal relationships and the same level of trust with everyone else. When a traveler is passing through town and only stops in your store for 15 minutes, the system of trading favors and trusting each other doesn't work very well. 


Money makes it easier for people from different societies to work together and trade. Now I don't have to rely on you to help me later when I need it. I can just take the money you gave me and use it to help myself. Nick Szabo, who is one of my favorite thinkers, calls this "social scalability."


It cuts down on the use of force. When everyone in a society agrees to use the same kind of money for trade, violence in that society can drop by a lot. How is this possible? People would still want to steal from each other to get even, wouldn't they? If we put aside what we already think we know, we can start to see how money can help reduce violence.


If you and I live in countries next to each other and want something that the other country has, we can either take it by force or trade something we have for it. As was already said, money makes it much easier to trade, so if we all use the same currency, we are more likely to trade than to invade.


Why would we put our lives at risk when we could just trade in peace? Why are people against money? So, if money helps us and the world as a whole in so many ways, why do so many people hate it? Why is it looked down on, along with the people who have a lot of it? Part of this is because not everyone has the same opportunities.


It is harder for some people to get out of poverty and become wealthy. Some of it comes from people who just don't want to work hard or take the risks they need to in order to get rich. But neither of these problems has much to do with the idea of money itself.


Instead, they have more to do with how our money works today. People who make valuable things and trade them with others should be rewarded by the way money works. Most people today think that this is how money works, but nothing could be further from the truth. 


Our current monetary system, unfortunately, encourages "financialization," which means turning everything into an asset whose value can be pumped up or down by telling a good story and getting other people to believe it. This mess of financialization has been made worse by the constant devaluation of all major currencies, which has led to a lot of debt.

 

 


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