What is Money? A Closer Look at the Resource We All Need

Money is something we all use every day, but how often do we stop and think about what it really is, where it comes from, and how we can make the most of it? In this article, we will explore some of the aspects of money that go beyond its materialistic value and help us understand how to improve our financial decisions. We will cover three topics: how to treat your dollars as employees, how money and gardening have in common, and how money has evolved over time and what it might look like in the future.

Your Dollars as Your Employees

One of the key skills to master in personal finance is to shift your mindset from being an earner to being an investor. This means that instead of just focusing on how much money you make, you also pay attention to how you manage your money after you earn it. You can think of your dollars as your employees, and yourself as their employer. Your job is to give each dollar a clear and specific role in your household, and to review their performance regularly.

Why is this important? Because if you spend your money impulsively, without a plan or a budget, you will have a hard time creating a surplus of income that you can invest for your future. And without investing, you will miss out on the power of compounding interest, which can make your money grow exponentially over time.

So how do you become a good employer for your dollars? Here are some steps you can take:

  • Create a budget that reflects your income, expenses, savings, and investments. A budget is like a job description for your dollars. It tells them what they need to do and how much they need to do it.
  • Use automation to make your budget easier to follow. You can set up automatic transfers from your checking account to your savings and investment accounts, so that you don’t have to rely on your willpower or memory to save and invest regularly.
  • Track your spending and review your budget periodically. You can use apps, spreadsheets, or online tools to monitor where your money goes and how well it aligns with your budget. This way, you can identify any areas where you need to improve or adjust your spending habits.

By following these steps, you will be able to make wise financial decisions that will help you achieve your goals and build wealth over time.

Money and Gardening: A Natural Analogy

Another way to think about money is to compare it to gardening. Gardening is a process that involves planting seeds, nurturing them with water and sunlight, pruning them when necessary, and harvesting the fruits of your labor. Money works in a similar way. You can plant seeds of income by earning money from various sources, such as your job, your business, or your side hustle. You can nurture them with savings and investments, which will help them grow over time with interest and returns. You can prune them by cutting out unnecessary expenses or debts that are draining your resources. And you can harvest them by spending them wisely on things that matter to you, such as your needs, wants, or dreams.

Gardening also teaches us some valuable lessons about money that we can apply to our personal finance:

  • Diversity is important. Just like a garden needs different types of plants to thrive, your income needs different sources to be resilient. If you rely on only one source of income, you are vulnerable to losing it due to factors beyond your control, such as layoffs, recessions, or health issues. By diversifying your income streams, you can reduce your risk and increase your opportunities for growth.
  • Patience is key. Just like a garden takes time to grow and bear fruit, your money takes time to compound and generate wealth. You cannot expect to see results overnight or get rich quick. You need to be patient and consistent with your saving and investing habits, and trust the process.
  • Balance is essential. Just like a garden needs both water and sunlight in the right amounts, your money needs both spending and saving in the right proportions. You cannot spend all your money without saving any for the future, or save all your money without spending any on the present. You need to find a balance that suits your lifestyle and goals, and that allows you to enjoy both the journey and the destination.

By using gardening as an analogy for money, you can gain a deeper understanding of how money works and how you can make it work for you.

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Money Through Time: Past, Present, and Future

Money is not a static concept. It has changed over time according to the needs and preferences of people and societies. In this section, we will briefly review some of the forms that money has taken in the past, how it looks today, and what it might be in the future.


In ancient times, people used bartering as a way of exchanging goods and services. Bartering involved trading one item for another without using any intermediary medium of exchange. For example, a farmer could trade some of his crops for a potter’s pottery. However, bartering had some limitations, such as the need for a double coincidence of wants, the lack of a common measure of value, and the difficulty of storing and transporting goods.

To overcome these limitations, people started using commodities as money. Commodities are items that have intrinsic value and can be used for other purposes besides exchange. Some examples of commodities that have been used as money are gold, silver, salt, shells, cattle, and tobacco. Commodities had some advantages over bartering, such as being more divisible, durable, portable, and recognizable. However, they also had some drawbacks, such as being subject to fluctuations in supply and demand, deterioration, theft, and counterfeiting.

To address these drawbacks, people invented fiat money. Fiat money is money that has no intrinsic value and is not backed by any physical commodity. It is issued by a central authority, such as a government or a bank, and derives its value from the trust and confidence that people have in it. Some examples of fiat money are coins, paper bills, and banknotes. Fiat money has some benefits over commodities, such as being more stable, convenient, and flexible. However, it also has some risks, such as inflation, deflation, and loss of trust.


Today, most of the money we use is digital. Digital money is money that exists only in electronic form and is stored and transferred through computers and networks. Some examples of digital money are bank deposits, credit cards, debit cards, online payments, and mobile wallets. Digital money has some advantages over fiat money, such as being more accessible, efficient, and secure. However, it also has some challenges, such as cyberattacks, privacy issues, and regulatory uncertainty.

Another form of money that has emerged in recent years is cryptocurrency. Cryptocurrency is a type of digital money that uses cryptography to secure its transactions and control its creation. It operates on a decentralized network of computers called a blockchain, which records and verifies all transactions without the need for any intermediary or authority. Some examples of cryptocurrencies are Bitcoin, Ethereum, Litecoin, and Dogecoin. Cryptocurrencies have some features that make them attractive to some users, such as anonymity, transparency, and innovation. However, they also have some problems that limit their adoption, such as volatility, scalability, and legality.


The future of money is hard to predict, but there are some trends and possibilities that we can speculate about. One trend is the increasing use of digital platforms and technologies to facilitate financial transactions and services. This includes the rise of fintech (financial technology) companies that offer solutions for payments, lending, investing, insurance, and more. Another trend is the growing interest in alternative forms of money that challenge the dominance of traditional currencies and institutions. This includes the development of new cryptocurrencies and stablecoins (cryptocurrencies that are pegged to other assets or currencies), as well as the exploration of central bank digital currencies (CBDCs) by various governments.

Some possibilities for the future of money are:

  • The emergence of a global digital currency that transcends national borders and enables seamless cross-border transactions.
  • The integration of biometric technology and artificial intelligence into money systems that enhance security and convenience.
  • The creation of smart contracts and programmable money that enable self-executing agreements and conditional payments.
  • The adoption of social media and gamification elements into money systems that increase engagement and loyalty.

The future of money is likely to be influenced by many factors, such as innovation, regulation, competition, demand, and trust. As consumers and citizens, we have a role to play in shaping the future of money by being informed, involved, and responsible with our financial choices.


Money is more than just a medium of exchange. It is a resource that we can use to achieve our goals and improve our lives. By understanding what money is from different perspectives and how it has evolved over time, we can make better financial decisions that suit our needs and preferences. We can also prepare ourselves for the changes and challenges that lie ahead in the future of money.