This article was last updated on January 24, 2022
How much are you worth? That is a harsh question, although not so harsh considering our present circumstances. Someone said before that money is the lever that that turns the whole world around. From the moment of our birth, money has already been an issue and this continues to be the case through the years. As we grow, our needs for a lot of things also grow, and money’s role in our lives intensifies.
We have money for a number of reasons. It is used as a measure of worth, for buying and selling goods and as a means of storing wealth. Just as pounds are used to measure a person’s weight, so is money used to measure the value of his clothes, his car, and his house.
However, we must note that one variety of goods may come to have lesser value than another variety which initially had the same value. Therefore, because money stands for the value of goods, the value of money can also change. In that way money is different from the measures of height and weight –feet and pounds—which always stay the same. It is, nonetheless, still a measure of value. It measures the value of other things but it cannot gauge its own value. Your money’s worth is quantified in terms of the goods it will buy. When the value of the money falls, prices usually rise.
Related: Beginner’s Guide To The Forex Market
Why Are People Drawn To Money?
Every time we want something, this is where money comes in. Let’s face it squarely; a lot of people, if not the majority of the world’s populace, want to be wealthy. Luxury yachts, expensive real estates, private planes, fine food, designer clothes coupled with designer accessories, flashy cars and flashier cohorts; we want all of them. Our desire for greater wealth and convenience being in an almost mutual scale with our needs for everyday survival are the primary reasons why we want money.
Thinking about it though, money by itself is practically useless. People only want it for the things it can buy.
Very early in our lives, we come to terms with what is known as the ‘Basic Economic Problem’—that people cannot have everything they want. This is saying that our wants are unlimited while our resources, the means we have of satisfying our wants, are limited.
We Cannot Have It All
Since we cannot satisfy all our wants, we have to choose between them: our resources have to be allocated or shared out among different things. Everyone, whether they are rich or poor, is compelled to make choices. Families may have to choose whether paying the electric bill is more important than a lavish dinner at a luxury hotel. A business entity might consider the importance of purchasing extra equipment rather than hiring more employees. A government may decide to allot bigger funds on defense than on healthcare.
These choices are what incentivize us to make thorough and sound choices. That being said, we should be very much particular with the way we use our money, so as not to pointlessly fritter whatever we have worked so hard to earn.
There are three main factors we must consider when we do not want to end up being shortchanged.
- Evaluate how much you have. Determining how much you have in your savings or in cash will help you get a clear-cut assessment in what ways are you supposed to make financial arrangements for the resources you hold.
- Weigh your options. As cited, it is extremely important that you consider what choices would matter the most and would prove to be significant in sustaining your basic needs. Say for example in this situation, you did not receive any salary from your job because you were on an unpaid leave so your money is limited, it is already past 1:00 in the afternoon and you haven’t had lunch yet. But then, you also want to go to the cinema because a sequel of your favorite film is showing. From these two options, which is more logical and practical? Is it the former or the latter? You decide. ALWAYS KNOW YOUR PRIORITIES. There is a right time and right opportunity for everything.
- Save and secure. This pretty much speaks for itself. It is not sensible to spend every cent of money you have. You need to save. Emergency situations may occur, and it is wise to have reserve resources in case you are forced to disburse much.
Another way to make sure that your money is being well-cached is to buy insurance. In the event of an unforeseen loss, getting insurance would guarantee you that your money is heading towards the right direction.
Likewise, it is necessary for you to validate the legitimacy of the company you are investing in to avoid future conflicts and possible deficits. You might want to check out agencies who are members of SIAA or the Strategic Insurance Agency alliance, for reliable companies that will offer you the services you need. Whether you are residing in areas along the east coast—like New York, New Jersey or Florida to name a few—or at the west coast—SIAA has stretched their scope to deliver quality services in a wide variety of consumers.
The Value of Money in Our Lives
The value of money depends on how much confidence people have in the currency. This conviction allows them to accept the billfolds and coins in payment for goods provided or services rendered, knowing that the bills and coins can sequentially be circulated on to others.
But have you ever thought about what is the real value of money in our lives? How priceless is money that some would even trade their conscience in exchange for it? You would be surprised at how far people would go for a few hundred bucks. They get so caught up in their endeavors to earn more that they forget the fact that there are still things in life that money cannot buy. Cliché and utterly cheesy, yes, yet at the end of the day, what matters is not the value of money but the value of worth you put on yourself and onto others.
Get ahead straight to your goals; you don’t want to waste anything with your hard-earned money with a mere option of something that worth a finger-counted value. Your money has to be place on something you’ll feel confident that it suit the exact significance. The world will give you an option: take it or leave it? Is the object or service worth it? Then, take it. If you are thinking the opposite, might as well think again, weigh future results and then leave it. We should be in our feet of confidence when trying to weigh things and scratch insignificant thought to stand for our own decision.
Eventually, you will reach the verge of adulthood when you regret being a kid that has spent all his piggy-banks saving on something you feel no-good to cry for and now, you ask yourself, “why did I bought this?”. Just give a hearty laugh on your own self and remember that you’ve learned your lesson.
So do you know how much you are worth? Do you value money as you should and do you follow any of the advices given in this article? If you have any questions, please don’t be ashamed to ask in the comments below.
Featured image credits: OTA Photos