WHY MONEY MATTERS

The importance of money becomes clear when we consider the cost of basic necessities. Happiness cannot be bought, but financial well-being is important for meeting the basic needs of a family. At some point in your life, you've probably heard someone say they don't care about money. Maybe you said it yourself. Theoretically, this opinion sounds good, but in fact, for better or worse, the importance of money should not be underestimated.

We will be having a discussional questions and possible answers on this digest:

* Reasons Money Is Needed 

* The Money Benefits

* Money Loss Of Course - Disadvantages 

* Future Planning 

REASONS MONEY IS NEEDED 

Money cannot buy happiness, but it can provide security and protection for you and those you love. People need money to pay for everything that makes life possible, such as housing, food, health care, and quality education. You don't have to be "The President" and you don't have to have a lot of money to pay for these things, but understand that until the day you die, you will always need cash. Understanding your personal finances is important because you need money to purchase the goods and services you need to survive. Take responsibility for the money you make and save enough for the future so that you have enough money when you can no longer trade work for money. 

So, the earliest you start saving, the more likely you will never run out of money and experience financial stress. Saving enough and investing wisely can also set you free financially. Then you will have enough money to last the rest of your life.

Universally Money is A Medium of Exchange

One of the reasons many claim to be indifferent to money is that the love of money is considered to be the "root of all evil". It is a profound truth, how materialistic people's obsession with money can lead them to commit bad deeds for their own financial gain. But in reality, money is just universally a medium of exchange; because its facilitates the exchange of your labor for various goods and services. 

Here are a few things to remember about the value of money and why it matters.

If you want to eat without money, you need to find someone who is willing to trade food for a product you can make or a service you can provide yourself. This kind of exchange is cumbersome and inefficient, not to mention an unreliable way to get what you want. When you have money, you don't have to expect someone to give you what you want in exchange for what you have to exchange. Everyone knows that money has value, so it can be exchanged for any goods or services. This increases market liquidity, which means how easy it is to buy and sell an asset. Of course, this only works if the money has a stable value. Its value comes from the fact that it is a scarce commodity. If anyone could make as much money from printing as they wanted, it would be worth nothing more.

To protect the true value of money, central governments must ensure that the money supply remains limited. In many cases, central banks such as the US Federal Reserve control the money supply and make sure we do not have so much money that it's no longer considered valuable. This is a process known as inflation. 

THE MONEY BENEFITS 

With money, you can trade your work for things that matter to you. Money has many major benefits: 

1. Money Gives You Freedom: With enough money, you can live wherever you want, meet your needs, and enjoy your hobbies. If you are financially independent and can afford to live without a job, you have more freedom because you can take your time and do what you want.

2. Money Gives You The Opportunity To Follow Your Dreams: With money, you can start a business, build your dream home, pay for your family, or achieve any other goal you think will help you live a better life. 

3. Money Provides Security: When you have enough money in the bank, you no longer need to worry about housing, enough food, or being able to see a doctor when you are sick. This means you can enjoy a stable middle-class life instead of living the way you like. 

Money can't buy happiness, but freedom, security, and the opportunity to make your dreams come true can make you happy. That is why it is so important to work hard and learn how to earn, save and invest money. When you start investing money, it starts working for you, helping you make more money, and eventually you will have enough money to retire.

MONEY LOSS Of COURSE - DISADVANTAGES

There are certainly what I termed as money loss of course - disadvantages, such as: An obsession or love for money can cause many problems. Trying to make money at any cost or constantly trying to earn as much as possible can lead to unethical or even criminal activities such as stealing or defrauding other people. Focusing too much on money or material things at the expense of other people and other things in your life can also create problems for you and your family. If all you have is money and you have no one to live with and nothing to enjoy, you will not be happy. 

Money can be a source of contention. When you and your spouse or family disagree about how to handle money, it can make your life much more difficult. In fact, money is one of the main reasons for the divorce of most couples.

Most of these losses of courses have to do with how people handle money and their attitudes towards it, not money itself. You can make and save money responsibly without creating problems in your life. 

FUTURE PLANNING 

Money is always needed, so it's important to start planning as early as possible to make sure you always have enough money. Sometimes it takes a lot of money to reach big goals, like buying a house or paying for college. To make sure you have enough money for these things, you need to set clear financial goals and work towards them.

You must plan for the day when you will no longer be able to earn money from your job because you are too old or too sick to work. Keep money in a retirement savings account such as a 401(k) or IRA. This is probably the best way to do it. Depositing money into a tax-deferred account reduces the cost of saving money because it is tax-free. And if you invest, you can make good profits. 

The more money you invest, the more money you get to invest. It's called income. The mechanism by which money creates more money and the amount created depends on the investment. For example, when you buy a bond, your investment is profitable because your money is being lent to someone (such as a government or a corporation) who returns it to you with interest. Investing in stocks allows you to make money from your investments because you own a small stake in a company that can grow and generate income.

If you save up enough money, you can buy things like a house or a college degree that will help you make a good income. You can also live off the money you earn, so you do not have to trade labor anymore. In this case, you have maximum flexibility because you can do whatever you want in life and your needs are still being met. The sooner you start saving, the more money you will make, especially if you use compound interest. Compounding happens when you make a return on your investment and a return on that return. This will help you grow your funds quickly. Investing at a young age can add up to interest and turn small investments into big sums over the years. 

Conclusion: You will always need money. Working for money can seem intimidating. Especially if your job is mediocre and you do not like what you do. But money justifies your work; because you get paid for your work, you are giving something of value that enables you live your life.

The pursuit of money can be destructive if taken too far, but having enough money can be incredibly liberating because it gives you the freedom to buy what you need and do what you want. Remember that it is up to you to save so you can use that money to build your future. 

Money matters because it is a means of exchanging goods and services, allowing people to trade without having to barter directly. It provides a standard unit of account, making it easier to compare the value of different goods and services. Money also serves as a store of value, allowing people to save for future purchases. Additionally, having access to money can increase a person's economic stability and security, as well as provide access to goods, services, and opportunities that may not be available otherwise.

REFERENCES AND RESOURCES:

1. "Money and the economy." Federal Reserve Bank of St. Louis, https://www.stlouisfed.org/education/resources/money-and-economy.

2. "The Functions of Money." Investopedia, https://www.investopedia.com/terms/f/functionsofmoney.asp.

3. "Money: Definition and Functions of Money." Economics Online, https://www.economicsonline.co.uk/Definitions/Money.html.