Psychology of Money - let's know Money

What is Money , we all know How essential money is in our survival in today's time.

We'll learn about Money 💰

What is Money

Money is basically a mean of payment,

Example - if we'll buy a Car from Motor company we'll need to pay them A price , the price must be paid in legal tender currencies (these can be digital and Notes and coins)

These legal tender currencies are known as Money in some ways.

How does it work

There are Different theories about it but we'll simply learn what money can mean for us in easy methods, 

Money is actually a medium of exchange, a unit of account, store of value .

To understand money we'll go through following points.

History of Money

Basically history of Money is more than 100000 years old and if we look closely we'll find how did people in older days bought they intend to, it was actually a more an interesting to learn fact about Money , in our research we learnt people in older days used their available commodity in exchange of the commodity they wanted to buy , this method is the oldest method of Money, we call it Commodity money.

Money have seen Alot of evolution in it , in old time we used commodities as money then this system was replaced by currencies made out of Gold and silver, we have seen in our mythological stories and books , in India there are multiple religions and every book and Ved upnishad have description of use of coin and commodities as money, as per English History the first use of gold and silver coins was used by Herodotus in 650 to 600 BC .

Types of Money

Basically Money can be used as we want it to , but there are actually 2 types of Money .

Comodity money is as we discussed in History of money and the second one is Fiat money, 

Fiat money is a form of money circulates in Market, made by the government, excepted by all, in whichever form it circulates in Market.

This can be Notes, coins , and digital .

How to earn money

As of now we know what money is , now we should actually know how to earn it or why should we earn it, How does earning money is actually different from its expenditure.

To maintain a mainstream lifestyle we use multiple sources, these source uses a energy, like if we are using a bus to travel it'll run on fuel to buy fuel we'll need money, How we'll earn that money, 

In older days people's used to work for wealthy people and government in exchange of comodity, as we know comodity is a form of money and was used in older scenerios, we still use this method to fullfill our needs without using Fiat money.

In today's time it's not that difficult to earn money if you're enough educated to a handsome level of literacy, 

We can earn money by using our skill and talent or our education. There are multiple options available from government to choose from and get start to earn your money.

Present of Money 

In evolution we have seen various changes in our monetary systems, in today's time we're using coins and Notes as legal tender currencies and banking systems giving us the access to multiple services are acting like money, like cheque, RTGS, forex exchange and bonds , sovereign gold bonds. There are multiple options available for payments and basically money is a mean of payment.

Future of money

For the most of time we have seen measurable changes in monetary systems, we'll definitely going to see Major changes in financial environment, Governments are working on launching their virtual currencies, these currency will lead us to transact in international markets without any trust issues.

In last decade we have seen some new kind of decentralised virtual currencies like Bitcoin #btc #bitcoin ethereum #Eth have achieved a not so believable price bandwidth.

Well managed money can bring a healthy lifestyle. 

To be continue

Author

Surendra vyas

M.com human resources