what is money

Well in spite of what people think what money is, it’s Not the music to which the world
dances, it’s not the magic wand to anything.,
Money is a unit of “value” of the service or goods.
It’s merely a certificate that “holds value”, it facilitates trade of value from one medium to
another. And one product to another. Name is not important, you can call it whatever you want,
dollar/rupee/yen/pound/ or anything. Trading in a way that means: I have this and I want that,
let’s go to basic economy to understand it. Suppose you are a farmer and someone else is a
shepherd.. You both create something that the other person want. You want his wool, he wants
your grain.
But how much is his wool worth your grains (food) or your grains worth his wool.
You both want it, both “NEED” it. Here is where money comes, it standardizes value, showing
to economy what a kg of grains is worth and what a kg of wool is worth, in relation to itself. So
u can sell food to him and keep money (certificate of value) with you and buy it whenever you
want/need the wool from him. Similarly he can sell the wool to you when he has it, and buy
food from you throughout year. Unlike food or other things of value, currencies don’t rot
Money serves three basic purposes,
1. A medium of exchange of value.
2. A medium to store value
3. A standard of everyone knows unit that tells everyone how much is a Kg of grain worth how
much wool or how much is it worth a coke can.
The problem incidentally with the world is that they have started confusing money with value.
Both are completely different.
In money terms:
How much is a real estate worth: the expected future income from it.
How much is a person worth: the expected future earnings of him/her.
How much is business worth: future expected earnings of that business.
Or for the technical minds
Money is the medium through which people exchange their labour in the production of goods
and services for the goods and services of others.

this is perhaps the most important advise of them all : DON"T RUN AFTER money : RUN AFTER VALUE

What is value

WHAT IS VALUE:
Value is something different from money while money just facilitates the shifting of value
from one form and/or time to other, value as such remains constant.
True Value is the amount of value you are willing to let go of yours in order to achiever one or
more of following things
1. avoidance of pain
2. more pleasure
3. anything which facilitates continuance of your genes
4. Anything that would make you feel better than others.
5. Anything that facilitates your perceived progress in life.
Value is different for each person for the same thing/service.
A person may not value services of a beautician as much as a woman would do.
To understand it deeply let’s do a hypothetical situation.
You are in a desert, with none in sight, you haven’t eaten of drunk for many days, and you
think if you don’t get something to eat and drink you will die.
You see a small house with a person sitting outside. And you ask for food/water. And he says
yes, I’ll provide you with both, but for that I want all your life’s belongings, your money, your
property and everything. Would you give it to him? I guess yes why, coz in that situation that
plate of food and that glass of water was worth more than anything you ever owned. It had
more “value” than your property because it was going to save your life. People ask well he
could have asked for anything and got it in that situation, not true, let’s see the same situation,
only now he is not asking for money, he Is asking for your son’s heart coz his child’s heart has
a hole and your son’s heart is a match for him. Now would you let go of your son to save
yours, I guess not.
I have tried my best to let you understand the difference between the two. Money and value.
Think.
Value is never destroyed as such. It merely changes form from one product or service to
another.
However value does get created and destroyed which are more or less equal.
All value starts from land and ends in consumption.
A farmer who is growing from the field is creating money.
A person who is creating chair out of wood is creating value.
A person who actually invents something in service is creating value.
A person who eats foods is destroying that value
A person who has bought that chair to use has destroyed that value coz he gave some of his
value in order to enjoy the pleasure of that chair, which he will destroy is some years.
A person, who took that service of person, destroyed that value by giving his own personal
value.
However, since the rate of creation of value is virtually same as the rate of its destruction.
A.k.a. consumption. Value in world normally remains the same