The Purpose of Money

This series we are exploring money, wealth, status, and prosperity – and the many misconceptions about them.  Last post we looked at status.  Today let’s investigate the purpose of money. 

Lots of people are chasing money and believe that money will make them wealthy and prosperous.  But that’s not true.  Collecting money doesn’t make you wealthy.

Money is an elegant tool.  Still, however, just a tool.  In its essence, money is a tool you use for transferring wealth.  This holds true whether we’re talking about fiat currencies controlled by governments or independent cryptocurrencies.

You can trade in currencies, buying Japanese yen or bitcoin in the hopes they appreciate in value.   That’s a trading play, but not really the primary function of money.  Primarily money is simply a medium for exchange.

If you spend all your time and energy trying to acquire more money, you might actually be hurting your progress towards creating wealth.  And lose sight of something profound.

You don’t really desire money…

What you actually desire are the things you can get with money.  (That’s why as soon as most people receive their paycheck, they immediate trade it for the things they really want: U2 concert, movie tickets, Pizza Hut, etc.)  This isn’t entirely materialistic.  Sometimes the things you want to trade your money for are freedom or security.

Before you sagely nod your head and affirm that money doesn’t buy happiness, you should also reflect upon the fact that being broke doesn’t buy happiness either.  Let’s not demean or disparage money, but simply recognize the actual role it can play in doing what you probably really want: to manifest wealth and prosperity.  And that’s where we’ll pick up on the next post.  Until then, would love to see your thoughts below.

Peace,

- RG