What money really is
Everyone talks about money like it’s the goal. For years I thought that too. Then I worked out what money actually is, and everything else started to make sense.
Money is a tool for swapping value. You give your time, skills or effort to an employer or a customer. They give you money. You then swap that money for food, rent, data, transport and everything else you need.
Before money there was barter: a farmer with some corn who wanted a pair of shoes would have to go out and find a shoemaker who wanted exactly the amount of corn that the farmer had to offer. Money removes that entire problem. Everyone accepts it, it’s easy to carry and it holds its value long enough for you to use it later.
Money is stored time
Here’s the part most people miss. If you earn your money at work, every amount has a time cost.
If James earns 2,000 an hour and a pair of trainers costs 40,000, those trainers cost him 20 hours of his life. Thinking in hours instead of prices changes how a purchase feels.
The first time I did this sum on my phone, I nearly fell off my chair.
Three things money can do
- Spend it on what you need and want today.
- Save it so you can spend it later, or handle a surprise.
- Grow it by putting it somewhere it earns more money, like investments.
Most people only ever do the first one. This course will show you how to do all three.
