Money is a medium of Exchange for goods and services. It is the way we get the things we need and desire. It has a value which has been assigned to it which is accepted by all. Since everyone cannot produce all the goods and services they need, money helps them to exchange these goods and services for a price.
Currency is the accepted form of Money which may include coins and notes which is issued by a government and circulated within an economy.
Generally speaking, each country has its own currency.
Examples of Currency:
America: US Dollars $
Switzerland: Swiss Francs
Bottom-line, we all Want Money and to have it we have to work for it within the laws of the country.
What do we do with Money: Satisfy Needs
Money is the medium through which we satisfy our daily needs of purchasing the things we require for our existence and growth. We buy food, rent or buy a house, buy the clothes we wear. Money takes care of our basic needs. When our basic needs are met and if we are left with more money, it takes care of our higher needs, like buying luxury items, buying a car, taking holidays, or paying for a good education etc.
How do we Earn Money: We Work
The things we work on may differ but we all work to make money. People around the world do various things to earn money. We take up jobs, many people get into a business, many people do farming, others may offer services, and some may get in to entertaining people, while many others may help with the distribution of goods and many other such activities.
All goods and services produced are sold to other people who need it in exchange for money. The basic premise is that we will sell it at a higher price than the cost price at which we produced it. Thus making us earn extra money.
Professional Life: Earn Money
After a certain age we all aspire to earn money. Once we finish with our education our primary concern is towards earning more and more money. Each individual has his or her own reasons, personal goals or target for which they want to earn money. All long as we are healthy and fit we aspire to earn. We can call this phase of life as the professional life.
What happens if we do not make enough money: Affects quality of Life
Not making enough money to meet ones needs may result in low quality of life where we have to live below are means. Consistently earning low may result in one being pushed to poverty as prices of goods and services that we need in the modern world keeps rising all the time. We need to keep working towards our goal to increase our income of money so as to keep up with the current standard of life.
Once we have made enough money to meet all our needs and if we have a surplus or money we feel secure. The basic objective is to keep earning and keep saving
Savings is the amount you have earned which has not been spent.
Every individual needs to save money. Saving money can be for various reasons most important being medical emergencies or unforeseen expenses. We also save for old age as we may not be physically fit to earn. We save in case we lose our jobs or if our business goes through a bad phase. We save for higher education, for marriage etc. Each individual may have their own reasons for saving. In many such scenarios one can feel secure in knowing that they have saved and they have money to make ends meet through the difficult times. Savings help us maintain our standard of life and give us peace of mind.
How do We Save: Money under the Mattress
We save money by cutting cost or earning more. We choose to spend wisely. The money saved is either kept with us in our lockers or under the bed or we keep it in our Bank accounts with our banks.
However: Word of Caution
Savings does not mean that you have more Money. It is the money you earned but chose not to spend.
How can we have more of money from the money we already have: Making it Work
We have to start making our money work for us. All your life you work for money, it is time to let money work for you. Let it help itself grow. It will grow on its own if it is put in the right place.
We may think we have more money by Saving and cost cutting but one cannot keep on cutting cost.
The only way we can make money grow and RULE it, is by investing.
Over time, you’ll need to work less and less as your money works more and more, and eventually, you might be able to stop working altogether.
Saving money and investing it is incredibly important. It gives you peace of mind, expands your options for decisions that have a major effect on your quality of life and eventually gives you the option to retire. Most people who are wealthy got there through a combination of their own hard work and smart savings and investment decisions. You can become one of those people, too.
There are various ways of investing, many channels from stocks, bonds, Fixed Deposits, Real estate purchases, Mutual Funds, Provident Funds, Various Government Schemes to Private equity, Venture Capital etc. This blog will cover them all as we go along.
The most important thing to remember is that Money takes time and effort to grow unless you win big in a lottery or a Casino. You have to have the basic knowledge and understanding of managing money, thus the Real Way to Rule money is Knowledge and information. We will try to provide you with the best of both.
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