What Is Money?

Money is the replacement of raw resources. Money is the representation of value. Now, money is an encrypted code that is fully detached from what it is: the valuation of raw materials, the means to process them, and the effort/pain of human labor.

If I work hard, have tools, the knowledge to use the tools, and/or have raw materials, then I can have income and grow my wealth. If I was a farmer 10,000 years ago, others would know I was wealthy by the large bundles of grain I brought to the market. If I was a landlord 1,000 years ago, others would know I was wealthy by the jingle of gold coins in my purse as I rode by on my ornamented horse. If I was a business owner 100 years ago, others would know I was wealthy by my tailored suit and the fact that I drove a car.

Today, there is no clear physical manifestation of wealth. Sure, if I drive a luxury car or live in a mansion that will make me appear to be wealthy, but I may merely have enough income and/or credit to afford the expense of having these items. Half the cars on the road in West Linn are Teslas. Who’s wealthy? Would my grandchildren care that I owned a Ferrari? If I spent my whole life working to pay for it, they would care because I created no wealth to benefit their lives.

Money is the representation of value. If you have money, you have value to benefit your life, the lives of your loved ones, and the lives of others you care about. You can be wealthy and grow the wealth of others you care about for generations to come.

The first step to becoming wealthy is valuing the money you have earned from your hard work. How much of your hard-earned money do you want to pay as interest on your credit to a bank because you want to appear wealthy? How much do you value the appearance of wealth versus actual wealth?

Do not let your money become someone else’s wealth.