Money is more than coins, bills, or digital numbers in a bank account. At its core, money is an assumed value, a symbolic measure of worth that allows us to exchange our skills, services, and effort for the things we want, need, and require to live.

It is an assumption of value (assumed value) used as a means of exchange for wants, needs, and necessities.

Understanding Needs vs Necessities:

Before diving deeper, it’s important to distinguish between needs and necessities:

• Needs: Education, mental well-being, spiritual growth, skill development, and personal fulfillment.
• Necessities: Food, shelter, clothing, and basic health requirements.

Every job, from a CEO to a janitor, involves providing services in exchange for money, which represents the assumed value of that service. Volunteers may even seek money to sustain charitable work, showing that money underpins nearly every human activity.

When you do a job, you are being paid an assumed value in exchange of you want, need and necessity.

The Assumed Value Exchange Rate

When you earn money, it reflects the assumed value of what you contribute to your organization, society, or the world. If your wants, needs, and necessities exceed your current earnings, the solution is simple: increase your value.

This value is tied to:

• a. Knowledge and Skills: The more specialized and rare your abilities, the higher your assumed value.
• b. Demand for Skills: Geography, industry, and scarcity of your skill set impact your earning potential.

Examples:

• CEO: Paid millions annually due to extensive, specialized skills critical to a company’s success.
• Janitor: Paid less because the skill set required is widely available, and replacement is easy.

“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

You Control Your Assumed Value

The good news? You are in control of your assumed value. Only you can develop your skills and knowledge, and this directly influences your exchange rate in society.

• Want more money? Invest in skills and expertise that are valuable and in high demand.
• Desire a higher lifestyle or freedom? Increase your knowledge and capabilities.

Many people settle for a lower assumed value, prioritizing comfort over personal growth. But those who constantly learn and evolve can command greater value and, ultimately, greater financial freedom.

The Ultimate Goal: Happiness

Money is not the final objective—happiness is. If your current earnings meet your needs and bring fulfillment, there’s no urgency to increase your assumed value. But if you aspire for more, your pursuit of knowledge and skill becomes the path to a higher exchange rate and a more prosperous life.

By understanding money as an assumed value, you take control of your life, your growth, and your happiness.

Acknowledgment: Special thanks to Kent Limpson for his valuable contribution to this exploration of money and value.