So why does money have some value?
Once upon a time money was exchangeable for a fixed quantity of precious metals. In this way it acted as effectively a receipt of ownership for these metals.
One pound (£) was exchangeable for one pound (lb) of sterling silver. Silver was simply a means of standardizing the quality of this silver. Sterling silver is 97.5% Silver and 2.5% other metals formed which formed alloy. These quanittiies were chosen purely for strength.
The main reason it has value nowadays is because it can be used to pay our taxes. i.e. it has value because the Government says it has value and because societally we accept that.
Effectively it has value because “Simon says” it has value. George Orwell fans might even replace “Simon” with “Big Brother.” (I’m not too much of a conspiracy theorist myself – just an interesting thought)
So if money is something that is made up – by extension how can anything we believe about money be anything but made up too? Its like trying to build a castle of logic on a foundation of shifting sands. The shifting sands being the current thoughts, moods and pervading opinions of the current times.
If something is arbitrarily created and a social construct then how can it have any bearing on objective reality?
When we realize this we also understand these beliefs are totally malleable.
If we ever assign something the quality of being “too expensive” or “too cheap” what we are really doing is projecting our inner beliefs of inherent value. We simply use money as a rough means of quantifying that value.
The interesting part is to realize that those beliefs on value are total societal constructs. Like all beliefs they may not even necessarily be accurate in the first place.
They are only as accurate as the evidence and data we used to form them. We form most of our beliefs in our teen years long before we have experienced much of what the world will teach us.
Understanding this will allow us begin to question the accuracy of these.
Often time these beliefs can be the very thing holding us back from identifying valuable and important things which we can use to achieve success.
Realizing this thus empowers us to form new beliefs which have the potential to serve us and our success even more. The wealthiest people on earth have different beliefs to most people – the clue is already there for us to see.
This is strong evidence to suggest that adapting and challenging our beliefs is the first place to start when it comes to creating wealth. This process starts with logically deconstructing the things we thing are true and rebuilding them to be more accurate models of the world.
The wealthiest people in the world do this consistently and therefore often have a truer version of reality in their head which they leverage to gain financial success.
This can be achieved by anyone.
*Not Financial Advice
Disclaimer: All content on this channel is for education purposes only and does not constitute an investment recommendation or individual financial advice. For that, you should speak to a regulated, independent professional. The value of investments and the income from them can go down as well as up, so you may get back less than you invest. The views expressed on this channel may no longer be current. The information provided is not a personal recommendation for any particular investment. Tax treatment depends on individual circumstances and all tax rules may change in the future. If you are unsure about the suitability of an investment, you should speak to a regulated, independent professional.
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