What is money? Not the FIAT-gold discussion, but the essence of money.


So we all know the story behind the birth of money, how the ancient people decided to have a common exchangeable value item, taking the place of the barter system.

I think today’s everyday people don’t keep in mind the fact what money is.
In my opinion, it is perhaps the best invention of mankind!
Money holds work, sometimes hard-sweat work.
People get paid for their work. Which is not only their energy, but also their time. We know everyone only has limited time in their life. Some say you can’t buy time. In the end they will be right, however, to a certain extent, you can buy time.
You can pay for someone to do something that you were supposed to do, but you decide to do something else. You can pay your friend to take your wife to the airport, because you want to rather watch a game. Ever seen a billionaire standing in line and waiting? Possibly, but a rare case 🙂
In Hungary we get paid less for sometimes the same work as our fellow Western-Europeans or my American friends. Our energy and time is valued less. I got over this, no big deal.
(Expenses are indeed cheaper, but in the end these circumstances end up providing a lower living standard as the price of many things are the same as everywhere in the world, the price a Mercedes will be the same (or higher due to taxes)).
So I ask myself, would I want to pay $5 dollars for a Starbucks coffee (I work roughly for net $46/day), for which I work almost an hour? No waaaay! Oh and by the way I did not even include that I am ‘only’ able to save 50% of my monthly net salary. – I know this % is great! This is my only reason for financial hope by the way.
I love cars, the above analogy would translate to this question, now including savings: A car I would love to buy, costs around $49.000 – brand new. Would I work and save only(!) for this car, for 8 straight long years? Hell no!
I think too few people ask themselves when buying stuff, how much they work for such. Bringing this thought further, how much time and their energy that item or service is truly worth. Some might think I am Ebeneezer Scrooge, but I’m not. I’m living below my means.
I think it is important not to spoil. The biggest mistake can be to spoil ourselves. As it is ‘me, me, me!’. Then we can spoil our family and friends. By doing so, we would set furthermore a very bad example, and dig even deeper in expectations and sourness (people tend to expect always more and in the end we can’t provide it). Buying unnecessary stuff is valuing yourself low.
My girlfriend expects me to buy an apartment, later a family house (honestly, she thinks ‘we’ would buy these, but as she can’t save with her current salary, the equation is with me alone).
We do have a small 60m2 house which my family gives out to rent. But my girlfriend wouldn’t want to move there as my mom would be too close. But I’m not sure if she understands that I would need to work for 8 long years just because she doesn’t like my mom being close. (Otherwise she loves my mom, at least I think so 🙂 )
I want to have more money. We all do. Some more, some less. Some want other things. There are many other things we can buy with money, so in the end I think people don’t want money bad enough, because they don’t understand well what it actually is. When it is a top priority to become rich, I say it’s a good thing as it could also make you value your time and energy. By doing so – by getting rich – you can increase the value of your time and energy.