Money Matters: What does money mean to you?

Money is a concept that has been passed down throughout generations to keep track of the value of goods and services. It can be thought of as a medium for trade so that resources are not only given away for free. It is important to understand how money works instead of merely working for it. We are conditioned to believe that money is a tangible object, when it is just an idea - or, more precisely, a social convention.

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And we're taught to work hard to earn the money we need to survive and then live within our means so we never fall too far below the poverty line. Today, merely working for money won't sustain many people's lifestyles forever. A person needs to set their value and charge accordingly. Is this the best way to be able to sustain life?

You should understand how money works

Personal finances might seem complicated, but It doesn't have to be. You should understand how money works instead of merely working for it.

To understand how money works, you need to look at it in terms of the four categories of assets, liabilities, equity, and net worth.

The first thing to understand is the difference between assets and liabilities.

Assets are things that you own that have a monetary value. Liabilities are things you owe or amounts of money you have borrowed from others.

Equity is the amount by which your assets exceed your liabilities for a specific period. If your equity is negative, it means you owe more than what you own and if it’s positive, then all good! Net Worth is the amount by which your assets exceed liabilities at any point in time, minus any equity in which all the ratios are positive.

Do something meaningful with your money

Money only has meaning if you can do something meaningful with it. It's not necessarily the case that you need to work harder to make more money because the bigger question is what else you can do with the money that you make?

Understanding finances and making good use of your money matters.

The reason people get a lot of enjoyment out of their work is that they can see what they're doing and how it helps other people in some way. And working at a job where you're just running around and doing busywork isn't necessarily going to give you that feeling if you're not personally motivated in your work

If you're not motivated in your work, likely, what you're doing isn't meaningful to you, which can lead to a lot of job dissatisfaction. The best thing is finding something you can enjoy and find meaning in, because then even when things get tough or stressful at work, the work will still be fulfilling.

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