Money is everything. Well, not exactly. Money might not buy happiness, but in this article we’ll show you the things money can buy and how money works.
“Does money make you happy?”
“Money can’t buy everything”
We’ve all heard phrases like this before. But, having money is essential to living a good life. In this article, we’re going to show you what money can buy.
Money: What we do with it
Simply put, money is a tool that people can use to get what they want.
We can buy fancy shoes, cars, clothes, and investments with money.
Besides things you can wear or drive around in, having money buys you five things:
When you have money, you will be able to buy these five things which can provide you a better quality of life.
And the more money that you have, the more you’ll be able to buy.
The more money you have, the more options you get.
Let us explain:
Two people go to a concert. They are both watching the same show. The difference is how the two will see and experience that same show.
One could only afford a ticket in the nosebleeds.
The other is watching from a suite.
Sure, both watched the exact same show, but one gets a more comfortable experience than the other.
Having money provides opportunities to choose how you want to live your life. It gives you the choice between:
- Flying first class or coach
- A hotel room with an ocean view or no view
- Driving a luxury car or driving a beat up car
The less money you have, the fewer options you will have in life. It will be more difficult to:
- Pay for your child’s college tuition
- Afford nights out with your friends
- Go on a dream trip
The less options that you have, the more strained you and your money will be.
You’ll have to settle for what you can afford instead of living the life you want.
When you have money, you have the freedom to live life on your terms.
Most people are dependent on their job for their next paycheck. In fact, 78% of Americans are currently living paycheck-to-paycheck.
What that means is if you don’t have money, you will always rely on your job to pay your bills, and you won’t have the freedom to live your life the way you want.
But, if you have more money, then you have more freedom to decide:
- When you work
- How much you work
- Where you work
Money gives you the freedom to do what you want, when you want to do it.
Freedom also buys you the ability to choose who you want to work with.
For example, company owners set guidelines on who they want to work with. They are able to decide who gets a job and who doesn’t.
Now, we’re not saying you should go out and quit your job or start your own business.
What we are saying is that you need to be smart with your money, so that you can buy yourself more freedom.
We want you to have the freedom to:
- Go on that dream vacation
- Not have to deal with people you don’t want to
- Do the things you love
It’s much easier to buy these things when you have money to buy that freedom.
There are only 24 hours in a day. You have to decide what you are going to do with that time.
Some of your time is might be devoted to:
- Going to work
- Going to school
- Going out with friends
- Reading books
- Learning a new skill
- Watching some of our financial education videos on YouTube. We really hope so!
But, the list is not limitless. There is a measurable, finite amount of time.
It is impossible to make more time. But with money, you can buy your time back.
Your time is valuable. In fact, it’s the most valuable commodity that we have. You want to spend time doing things that matter, and that you actually want to do.
If you have more money, you can spend less time doing the things you don’t want to do.
When you have money, you can hire someone to:
- Cook for you
- Do your taxes
- Cut your grass
- Shop for you
- Clean your house
Let’s say you hate cooking and you make $25 an hour at your job. You could spend 10 hours a week cooking, or, you could have someone cook all of your meals for you for about $200.
The cost of having your meals cooked for you is lower than your cost of cooking 10 hours a week.
Now that you have someone to do the things you don’t want to, or otherwise wouldn’t have time for, you can start doing the things you want to do.
You just bought your time back.
With great power comes great responsibility. Okay, maybe it’s not so dramatic. But, the more money you have, the more influence you will have over people. Simply put: Money is power.
The types of power money will buy you are:
- Influence over others
- Trust from others
There is a ton of information out in the world. How do companies and people ensure that their message gets seen?
If you guessed money, you’d be right!
With money, companies can buy:
- Ad space on websites and billboards
- Commercials on T.V. and streaming services
- Sponsor events
Now you have power over what people see, how they see it, and when you can influence what they buy, believe, or share.
Plus, now you’ve given them a reason to listen to you.
Once you have money, hate it or love it, studies show that you’re more likely to be trusted.
Think of it this way:
If you buy an apartment, they will ask you to put a security deposit down before you can rent.
The point of a security deposit is to show a building owner upfront that if you damage the structure of the apartment, it’s paid for.
But why don’t they just ask you if you have the money? You know, take your word for it?
Because money talks. They need to know beforehand that they can trust you if problems arise.
The only thing that can build that trust is money.
Money is the fuel that helps you buy what you want. The more you have of it, the more things you will be able to buy.
Now that sounds simple, but it isn’t always so easy:
Donating to charity is great. But, if $5 feeds one person, and you only have $5, you can only feed one person.
How do you feed more people?
You need to have more money.
If $5 feeds one person and now you have $50, you can feed 10 people.
See? The more money that you have, the more fuel you have to do the things you love to do.
Your money can be used as fuel to:
- Help more people through donations to charities
- Donate money for research and development
- Clean up the environment
- Invest in city centers and parks
These are things that are amplified because you have money.
Money lifts you up
Money, if used the right way, can improve your life. But you need to know how to use money to see its positive impact.
Remember, if used correctly, money can buy:
Having less money doesn’t mean you can’t have any of these things. But it does mean that you will have fewer chances to live your best financial life.
So, how can you start using your money to improve your finances?
The sooner you begin the process, the better results you will have. If you’re a young adult, and you’re wondering how to make money as a teenager, we’ve got some tips for you.
Check out our Ultimate Guide to Savings where we show you what savings is, the myths surrounding it, and how much you should save.