The Subjective Power of Money

Money…the life blood of an economic society. An agreed upon thing which holds value that can be exchanged for goods and services. Yet, if it is as simple as that, why does it get so complicated? Well, to break it down into simple, bite-sized pieces, there are a few things that cause money to be overly complicated.

Money is Subjective

Money is very subjective. One person may think they are making a fortune, while another, at that same salary level, may feel as though they are not earning what they should. The question then becomes, what causes these thoughts and why does it affect people so greatly? This leads into the next reason why money is overly complicated.

Money is Emotional

Society has tied money to emotion in such a way that it is nearly impossible to break. Sure, you can break the tie between money and happiness as society would have us believe, but society may look down on that point of view. Why is that? Well if looked at at face value, money is tied to happiness, then you must acquire money to become happy. Pretty simple. However, society has also linked materialistic things to money and happiness. So now, in order to be happy according to Society’s rules, you must acquire money, in order to purchase the new things that will lead to happiness.

We’ve Seen Examples of This Over and Over

For a while, the car industry was booming. It seemed that any vehicle a car maker brought to market, it sold. Especially large SUV’s such as the Hummer. Buying that new vehicle required money and the thought was that you deserved it, it will lead to happiness. Then as that cycle began to wear down, the housing boom picked up. To own a home was to say that you had finally arrived. “I’ve made it! I am a home owner!” you might have said. The same pitch that was used to sell you that Hummer, got you to buy a house as well.

Money is Power

The truth of the matter is that money, whether you like it or not, holds power. Power in that it provides choices to you. Many more than if you didn’t have money. However, beware of using money to buy happiness. Sure, a new toy every once in a while is fun, but does it really make you happy long term?

A Different Way of Thinking

If you think about everything that you buy, what, if any, are true assets? I will give you a hint. An Asset, to me, puts money in my pocket. So for example, a stock that provides dividends each month is an asset. However, a vehicle, no matter how expensive, is not an asset to me. It will always require maintenance, and most likely will not be profitable when sold. Sure, you could argue that certain cars hold their value better than others, but for the typical car, it is a losing proposition. So what do you think? Are you caught up in Society’s sphere of influence, tying money, materialism, and happiness together?