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The Value of Money

The Value of Money

Imagine having a million Dollars. That would be great - right? Now think of all the things you could do with that money. Now imagine having all that money, but you are on a small deserted island far from anywhere, and not even close to any shipping routes. So how much is that money worth to you now?

The problem is – money is only as good as its buying power.

As a society, we are always on a quest to make money – to make more money – to make more money than everyone else. It’s in our nature. It’s who we are. It’s what we have been taught to believe. So how can we get more money?

It’s easy – here are 10 ways to get money –

  1. You find it – this is simple enough. Someone lost a $5 bill. You find that $5 bill laying on the ground, and suddenly you are $5 better off.
  2. You win it – you buy a lottery ticket or bet on a horse, and you happen to win. Well done!
  3. You inherit it – a relative leaves you some money in their will.
  4. It’s a gift – someone you know generously gives you some money.
  5. You steal it – you take money away from someone without their permission.
  6. You print it – you get the right materials and equipment and start printing your own money.
  7. You invest it – you have money which you lend out. At a later time, you not only receive the money you initially lent out, but you also get an agreed-upon amount for the cost of borrowing that money. It’s called Interest or Return on Investment (ROI).
  8. You receive it in exchange for something you have – you decide to offload belongings that you no longer want or need, and so you decide to have a garage sale. While the money you receive may be small in comparison to what you originally paid for it, it’s a way to get money.
  9. You earn it – you go to work for an employer, and you are compensated for your time in the form of wages. This is what’s known as – doing an Honest Day’s Work.
  10. You get it in exchange for something you created. You grow crops, or you mine ore, or you carve ornaments out of stone or perhaps make furniture out of wood – whatever. Regardless, when you sell what you have accomplished, you have ‘created’ money.


Money gained from Methods 1 through 4 has no value

Each of these four methods falls under the category of “Something for Nothing”, therefore the money has no value attached to it. It may have buying power, but that’s all. It is only as good as what you spend it on. No effort or sacrifice was made to achieve that money. It’s because of this lack of earned value, people who win huge amounts of money on a lottery for example, are often destitute not long after. Since no real effort went into winning or earning that money, nothing was really lost when it was squandered.

Money gained from Methods 5 and 6 are illegal

Whether it’s stealing money, gaining money by fraudulent means, or by just plain printing it – these methods are illegal. However, it’s interesting to note – Governments print money when they do not have enough to pay off a debt. The way to tell when they do this is when the currency is devalued.

Money gained from Methods 7 through 9 does have value

Each of these methods involves some sort of talent, sacrifice, expertise or effort associated with them. Therefore, this money has earned value for the person who received it in exchange for their skills. However, this money is money that already exists – it has only exchanged hands.

Only Method 10 creates money

You start with nothing but the fruits of the earth, You then create something of value, after which, you sell what you made in exchange for money. For example – someone pays you $5 for that item you just made. You started with nothing, but now you have $5, AND the buyer has something ‘worth’ $5. Or for the mathematically inclined – ‘Blood, Sweat and Tears’ + $5 = $10. This is probably where the term, ‘Sweat Equity’ comes from.

However, on an ethical note, whatever you created, you first took from nature. It only seems fitting and proper to repay nature for what we took. Perhaps we should think of it as ‘borrowing’ from nature.

There is no magic money

Money does not ‘grow’ on trees unless, of course, you are an apple farmer.

Economies that create work just to keep people employed are building a house of cards. One hic-cup and it all comes tumbling down.

Just to put all this into perspective. Just after WWII, countries had to rebuild – both figuratively and literally – and so people rolled up their sleeves and got to work. Believe it or not, but those were happy times. During that period, people were ready, willing and able to work. Of course, rebuilding needed to be administrated, and leaders didn’t hesitate to take credit for the achievements.

Today, our economy is somewhat inverted. We have fewer and fewer people supporting a forever increasing population, which in turn overly administrates the few, while an ever-increasing number of people want to take credit for those achievements.

Putting it into perspective

If your business involves creating something that people NEED as opposed to providing something that people WANT, your business will have an inherent strength and foundation to survive. If your business provides the necessary support for these Front Line Businesses, you will be in a strong position to survive. If your business only offers what people want, then you will need to plan for a worst-case scenario.

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Good luck with your Business

© Copyright 2020 – Michael A. Coates – All Rights Reserved

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