The role of money in person’s life. 2 factors

The role of money in person’s life. 2 factors

The world society lives in the material world, where money is a means of exchanging products and services between people from ancient times. Money is also the circulatory system of the global market economy. Does money play a significant role in a person’s life?

According to Maslow’s hierarchy of needs, physiological needs (food, water, sex, sleep) and safety needs (housing, comfort, stability) are at the core of the human needs pyramid. Money can meet these and higher needs.

Finance is the foundation that allows you to change a lot in life. If money is not enough, then a person has reduced degrees of freedom and he becomes dependent on money and unhappy. A person with wealth is free and happy, because he has many more degrees of freedom and choices.

Specific examples of what finances allow:

  • Eating healthy and wholesome food;
  • Success with individuals of the opposite sex;
  • Care for yourself and health;
  • Travel and explore the world;
  • Birth and parenting;
  • Living in a spacious and comfortable home or apartment;
  • Riding on a comfortable and reliable car;
  • Obtaining quality medical services;
  • Improving social status.

Finance allows you to solve many life problems, so the role of money in a person’s life is important, isn’t it?

The importance of the role of money in life

Despite market relations and the economy, the role of money in our own lives is different. Some people do not have money in the first place and such people are not in need. There is always not enough money for other people, and they are ready for anything for their sake. Why it happens?

The importance of the role of money in people’s lives is determined by 2 factors:

  • Ability to earn money;
  • Ability to spend money.

A person who can earn and spend money is their master. Money is not of great importance to him; their role is minimal. The masters of money are not fixated on them, living a full and multifaceted life.

People who cannot earn and spend money are ready to risk their lives and health for their sake. Money means a lot to them, they are fixated on them, experiencing poverty and problems in life. Money is given to them with difficulty; their role is huge.

Unfortunately, 2 factors are rarely respected at the same time, which is a mistake. Compliance with 2 factors leads to a natural result: the growth of wealth and the decline of the role of money in life.

Earning and spending, as the essence of the importance of the role of money

Money alone doesn’t cost anything, it’s just paper. What matters is that people are ready to do for you for your money and that you are ready to do for people who pay you money.

Earning

Money is earned in different ways. Some earn big money doing their favorite activities, self-actualizing and reaching heights. Others earn as in hard labor, engaging in hated activities and dragging out a miserable existence.

Proper earning consists of 4 points:

  • Earn money by doing your favorite activities, realizing yourself. In no case, do not engage in hated work for the sake of funds. Large funds can not be earned by hated labor;
  • Control yourself, cash flow and other people. Large funds are earned in encouraging other people to work, bringing rich rewards;
  • Earn more money in less time. The “money / time” ratio should be as high as possible;
  • Earn more money for less effort. The “money / effort” ratio should also be as high as possible.

The more money is earned and the less time and effort spent on it, the less role money plays in life.

Spending

Competent spending of money is life within our means and spending only on necessary and high-quality services and products. To earn a lot, but to spend more is not life within our means. Earning little, where income covers all needs – already life within our means.

Spending money, we want to receive in return services or products made by other people. However, people are by their nature selfish, lazy, and love to consume more than create. Therefore, money alone does not guarantee quality and useful products and services. The burden and responsibility of literate spending falls on your shoulders.

Proper spending consists of 4 points:

  • Spend less than you earn. Do not allow expenses to exceed earnings. Reduce the “cost / income” ratio to a minimum. The exception is your health or loved ones;
  • Buy only necessary products and services. Before buying, consider whether there is a need for it. The dollar saved is a dollar earned;
  • For the funds spent, get the best quality products and services. The “quality / price” ratio should be as high as possible. Among the products and services of the same price range, choose the highest quality;
  • For the money spent, get as much quality products and services as possible. The “quantity / price” ratio should also be as high as possible. Among the same quality products and services, choose the cheapest.

The less money is spent on income and the more quality and quantity is acquired with this money, the less money is played in life.

Conclusion

Take a look at your attitude to money. Do you know how to earn, manage and spend them? Remember that money plays in your life exactly the role that you yourself determine.

Your life will be wonderful if you learn to manage yourself, finances, human and other resources. The ability to earn and spend money is the key to success. Otherwise, you will carry out someone else’s orders, selling your irreplaceable time and energy for a penny, embodying other people’s dreams and goals. Avoid such slavery.

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