WHAT IS MONEY AND HOW DOES IT WORK?

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what is money

What is Money?

When you hear the word money, what comes to mind? Ten naira note, fifty naira note, one thousand naira note? Or do you think of your bank account and the load of cash you have stocked up in it?

What is Money?

While trying to define what money is, let’s look at what is not.

  1. First and foremost, money is not a naira bill, a cheque or penny. It is neither gold nor silver. It is definitely not cowries or stones neither is it a credit card. These things may represent money but they are not money.
  2. Money is not just an object generally accepted as payment for goods and services and repayment of debts.
  3. Money is not a material substance. 

Having looked at what money is not, the question of what money is arises. Before going any further, let’s look at some conventional definition of money.

  1. Money is a good that acts as a medium of exchange in transactions and facilitates trade. It is a good not used for its own sake but the sake of exchange.
  2. Money is trade. Money is an evolved form of trading goods and/or services. Instead of trading goods for goods and services for services, we use money to delay one half of that transaction.
  3. Money serves as a store of value.
  4. Money is neither good nor bad but is a tool which can be used for good or bad purposes or goals. WHAT you use your money for is an indication of what you VALUE in life or what seems to be more important to you at a given point in time.
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Materialism, Money, Wealth?

Firstly, money is not wealth neither is it materialism. There’s a common unspoken belief that money is wealth and a common perception that money is not just in paper notes but also in houses, cars and material possessions. I beg to differ (not negate). Money is much more than material or physically seen things. If we say money is materialism, what if all your money was stolen and you lost your house, car, possessions and all? Will you say that you have lost it all? Remember where all the money came from, why you have it in the first place, have you lost those too? 

Money is your ability to see the need in you and others. It’s the ability to tell the need in society and use your skill in solving such needs. So, if you were to lose all material things but your skill and your ability yet remains, have you lost your money?  Money is like a symbol for favours that you can call in from other people. Money is your ability to see the needs of your fellow men and women, and your drive to help them.

Unfortunately to many, money feels so tangible and cold and solid and real, that it has become so easy to start believing that it actually is. But we must remember that the value of money is not in the piece of paper, metal or numbers on the screen. It is what they represent that is of actual worth.

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How Does Money Work?

Money is a means to wealth. Money is your skills. It is your time spent in helping others and in developing yourself. Money is value. The reason you have money in your bank account is that you have at some point provided valuable services to your fellow man. That’s the major reason people receive money or rather favours that they can call in. If you don’t give, you don’t receive.

Money can be gotten through other means, sometimes. You might win it, get it as inheritance, or steal it. But that money can be fickle and gives a false sense of security because when the money is spent, it is spent. Money is more interior; it is like a mindset. It is not paper or house or car or whatever; those things when they burn become ash.

Give and it shall be given to you

Money is being able to provide help. It works like this; if you give to others, they will give it to you. If you save others, they will save you. If you learn a skill that helps a lot of people, that will keep you fed. These things are not material things and cannot burn.

Money responds to the right mindset. Robert Kiyosaki said “the reason I have so much money is that I don’t say I can’t do it! I just say how can I do it? And then I just go and do it!” 

At first, I wondered how saying “How can I do it?” is the reason he has so much money. Listening to him further, I realized that money responds to mindset. A mindset of possibilities can make things possible. That’s the difference between rich dad and poor dad. Rich dad never says, “I can’t afford it” only the poor dad yells that at his kids.

These are a plethora of truth about money and how it works. Money is not the twenty thousand naira in your bank account right now but the twenty thousand ideas in your mind waiting to be explored. Money is in the skill you possess, the passion that rules your heart and burns your soul. Money responds to value and a mindset of possibilities. Conclusively, money is not just money (paper notes); money is deeper than money (paper notes). 

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