Money is a tool that we all use in our daily lives. It is something that we earn, spend, and save, and it is an essential part of our modern society. However, many people struggle with their relationship with money, and it can be easy to fall into the trap of believing that money is the key to happiness or that we need more of it to be successful. In this article, we’ll explore the idea of money as a tool and how we can use it to create the life that we want.
Defining Money as a Tool
At its core, money is a tool that we use to exchange value. We earn money by providing value to others through our work, and we spend money to receive value from others in the form of goods and services. Money is not inherently good or bad, but it is a neutral tool that can be used for both positive and negative purposes.
I think some people fall into the trap of thinking money is the end goal when really, it’s what we use to get the things we want. Chasing after numbers without a good way of spending it or simply watching that number grow but not using the money you have is not useful.
JUST IN: 🇺🇸 US congressman says maybe we do print money out of thin air, but we're the US government.
— Watcher.Guru (@WatcherGuru) May 10, 2023
Using Money to Achieve Our Goals
Money can be a powerful tool for achieving our goals and dreams. By earning and saving money, we can create a financial foundation that allows us to pursue our passions, travel, buy a home, start a business, or save for retirement. Money can also be used to help others, whether through charitable donations or by supporting the people and causes that we care about.
But like previously mentioned, if the money is not put to good use and you’re not actually using it to achieve the goals you want and can with money then there’s not much point to having more money. My grandma in China has a good amount of savings and no debt, she also has a generous pension that allows her to save a good chunk of it each month. But because she’s lived through poverty in her lifetime, her mindset is still to be super frugal and save as much as possible.
For example, she has more than enough money to take the taxi everywhere, but she still chooses to take public transportation because it’s free for seniors. We’ve tried to convince her it’s worth it to spend on things that can elevate the comfort of her life, but once someone gets into a certain mindset, it can be very hard to break out of it.
Avoiding the Trap of Consumerism
While money can be a useful tool, it is also easy to fall into the trap of consumerism. Consumerism is the idea that buying more and more things will make us happy and fulfilled, but in reality, it often leads to stress, debt, and dissatisfaction. To avoid this trap, it’s important to be intentional about our spending and to focus on the things that truly bring us joy and fulfillment.
I’ve always had an interest in consumer technology ever since I was young, and when I started working and had a bit in savings, I would upgrade my phone every half a year. I’d sell the “old” model and buy the latest one as soon as it came out. But the phone I have right now, I’ve had for over two years already because I realized there really isn’t that much difference in the models when you upgrade so frequently and it wasn’t exciting anymore.
I decided I was going to be smarter with my money and put it into other areas that will bring joy and fulfillment.
https://www.youtube.com/watch?v=T04yiCoN41A
Building Wealth Over Time
Another way to use money as a tool is to build wealth over time. Wealth is not just about having a lot of money; it’s about having the financial security and freedom to live the life that we want. Building wealth takes time and effort, but it is possible for anyone who is willing to be disciplined and intentional about their money.
Thus, wealth has a different meaning depending on the person you ask and just because your neighbour may be richer than you are, it doesn’t actually mean they’re in a more secure position financially or that they feel more wealthy.
Investing in Our Future
Investing is another powerful way to use money as a tool. By investing in stocks, real estate, or other assets, we can grow our wealth over time and create a secure financial future. Investing also allows us to participate in the growth of the economy and to support the companies and industries that we believe in.
I believe in investing at a young age but also only investing once you have a good understanding of what you want to get out of it and a strategy based on a good understanding/knowledge of the market. When I bought my first stock during the pandemic, it was an impulse decision after reading an article, it did end up making money but I realize I should’ve been more prudent.
If investing, the market, finances etc. are just too confusing, then it’s a good idea to work with a certified professional to help you invest and get the most out of your money. There are options like GICs right now that give a good amount of interest and have a guarantee on the principle. With inflation being this high, if you have spare savings (not an emergency fund) just lying in bank accounts, then that money is actually losing value over time.
I wouldn’t have ‘that’ much. I would suggest getting a GIC and investing some of it. This is the time to invest as rates may start going down soon!!!
— xyz – Wascally Wabbit (Bad/Boy) (@Rusty1514) May 8, 2023
Giving Back to Others
Finally, money can be used as a tool to give back to others. Charitable donations, volunteering, and supporting causes that we care about are all ways that we can use our financial resources to make a positive impact on the world. Giving back not only helps others, but it can also bring a sense of purpose and fulfillment to our own lives.
I’m certainly not well off but as someone who loves to sing and wants to do it as a career, I always give what I can to street musicians when I see them. I understand the struggles, difficulties they face and share the passion they have. When I see them playing and enjoying themselves, it’s an inspiration.
I also buy food for the homeless in my area. I used to see a guy sleeping outside my local BMO branch on the regular, doing and giving what I can with what I have to help others gives me a positive outlook on life as well. No matter what you’re passionate or concerned about, using money to support that cause is another great way to spend it.
Money is a tool that can be used in many different ways. By thinking of money as a tool rather than an end in itself, we can create a healthy and balanced relationship with our finances. We can use money to achieve our goals and dreams, build wealth over time, invest in our future, and give back to others. However, it’s important to be intentional about our spending and to avoid the trap of consumerism. Ultimately, the way that we use money is up to us, and we have the power to create a financial future that aligns with our values and priorities.