What is Money?
Many assume we know what money is because we all have to deal with it daily. If we manage our financial affairs well in that our income is consistently more than our expenses, we can add bit by bit to our savings pot and assume that we are doing a good job. We can relax happily in the knowledge that all is well in our world and that if we just continue this way, our future will be secure.
However, this pleasant fantasy is disturbed when despite our careful planning, we watch in horror as our expenses start to creep higher. We then scramble to find ways to increase our income. Whether this means attempting to ask our boss (suffering similar dilemmas) for a raise, considering a side hustle (which seems to be all the rage at the moment), or in the absence of those hard choices, starting to draw on our carefully acquired savings.
“After all, this is the rainy day that I always warned to prepare for – hopefully, things will get back to normal soon and it will all be ok”.
Sadly, these warning signs have been seen many times throughout history. Just not in our lifetime, particularly if you live in the West. The concept of price inflation that then evolves into hyperinflation is not an experience any of us have had to suffer – thankfully.
But what if it is now our turn?
Unless you have had cause to delve deep into finance and monetary history, your understanding of our current money system will likely be limited. In a world where we are encouraged to specialise, it is unlikely that you would explore too deeply into how the other complex systems of our world work.
However, MONEY affects everyone; no one can escape it.
Your ability to have more or less of it will significantly dictate the comfort of your life. Humans are compelled to chase for more it, even if only to survive and feed our families. for this reason, it benefits everyone to know exactly what we are dealing with regarding money.
In my quest to understand money, I began looking for a definition; this search led me to further terms that require an additional search for meanings. Words such as Commodity Money, Fiduciary Money and Commercial Bank Money. Descriptions such as fungible, portable and durable. The list goes on…
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