What is Money, a different perspective
What is Money?
It is an assumption of value (assumed value) used as a means of exchange for wants, needs and necessities.
Needs vs Necessities:
When we say need, it means ——- Education, clothes, Mental, physical and spiritual well-being etc.
When we say Necessity, it means ——- Food, Shelter, clothes etc.
When you do a job, you are being paid an assumed value in exchange of you want, need and necessity.
When someone has a job, they are being paid money based on an assumed value of that job to the company/customer in exchange for that person’s wants, needs and necessities.
Money is important and ultimately everyone is working for money. Even volunteers for charities seek money to further the charity’s mission.
Whether one’s profession is a engineer, doctor, janitor or garbage collector, services are provided in exchange for money based on the assumed value of that service.
This monetary exchange based on assumed value is then spent on the individual’s wants, needs and necessities. This is the assumed value exchange rate.
If your wants, needs and necessities are higher than your current exchange rate then you simply need to provide greater value either in your current line of work or perhaps another.
Typically an increase in the assumed value exchange rate is correlated to an increase in
knowledge and skills. Therefore the pursuits of greater knowledge and skill can be correlated with greater assumed value and more money.
An additional factor that can vary between regions and industries is the demand for the skills and knowledge a person possess. In other words, the assumed value for the same person with the same level of skill we can vary from one town or country to another based on the abundance or scarcity of that skill in that area and what the need for that skill is in that particular region.
Examples:
———– A CEO can paid millions of dollars every year because that person has some set of skills very necessary to the company and the company really needs it. The skill set are big and comprehensive.
———–A janitor is being paid few hundred dollars because a premise could get a person with those set of skills easily and can replace easily. So, the skill set necessary are small and it is not necessary that only a specific person can do the job.
Quote:
“The amount of money we receive will always be in direct ratio to the demand for what we do; our ability to do it; and the difficulty in replacing us.”
— Earl Nightingale
Take away:
YOU are in control of your assumed value. Since you are the only one that can control the acquisition of your skill set and knowledge you can control the assumed value exchange rate.
In order to create a high exchange rate for your wants needs and necessities you must acquire knowledge and skill that provides high assumed value to the society in which you reside.
Few people understand or take action on the fact that they are in control of their assumed value. Many languish in lives with low assumed value because they fail to sharpen/hone their skill set. They choose leisure over the investment of time and energy to constantly update themselves.
Ultimately HAPPINESS is the goal…..if one is happy with their life and their wants, needs and necessities are satisfied with their current level of assumed value, nothing needs to be done. But if one seeks greater assumed value in exchange for their desired level of wants needs and necessities then the actions needs to gain knowledge and skills is limited only by there own courage to pursue it.
Note: Special thanks to Kent Limpson for his fruitful and valuable contribution in making this blog another milestone in the path of Noble truth.
