In this article You will find why I decided to use analogy to search for a better description of what the money is. Continuing the Olistic Strategy presented on one of my previous article I’ll show why it is so important to have a deep understanding of the true essence of money as a starting point for building your success
The Question
Sometimes it happens that I have some bills in my pocket, pull them out of my wallet, keep them in hand, stare at them and ask me: why we give so much importance to these pieces of paper? I'm not the only one with this question in mind. Occasionally I talk with friends in front of a soft drink at the bar. We ask each other "but in your opinion, what do you really think money is? Why are they so important? ". Usually the answers we give are more related to a causal relationship, rather than a real understanding of the true essence of money as it is difficult to go beyond a simple operational response: “no money? You won’t buy what you need to live... and if do not work you do not get money.
The first answer is unacceptable
Fortunately I never settled for an operationale answer, so I decided to better understand the situation, starting from my favorite author and one of his books, "The Cashflow Quadrant" by Robert Kiyosaki. Robert tells us clearly that there are usually two phases for the monetary value, or when the money is an exchange value convertible into physical gold (then a real value, even for the use of a metal itself) and when it is currency, that is a promise of value that is part of the institution issuing it. I may have oversimplified these definitions, but the common root that emerges is that in both cases we accept the value of money for real. You have already understood where I'm going? If like me you try to use the analogy to examine the question, you already know that ...
MONEY IS AN AGREEMENT!
By knowing that, where do we start from?
The real problem that haunts us is that we are not aware of what we have accepted as true and by not being aware, we can’t make better choices for ourselves. In short, if we do not know what the money is, we can not have the advantage of exploiting it, but we will be exploited by it. As Kyiosaki says, if we are part of the quadrants of the left, our agreement is to exchange our time for money (and time is a limited resource). Period. Even if we work for highly paid job, we will have to exchange our time for money.
Those who are on the right quadrant are well aware that money are agreements and the more agreements they can take out per unit of time, the more money they can earn. Who is on the right can also build systems to automate and put the lever in the number of agreements that could be stipulated per unit of time… and maybe without having to directly employ their presence or their time.
The best agreement
If money is an agreement, to be rich enough you have to learn how to create the best possible agreements and the best agreement that currently comes to my mind is one where you sell something, not necessarily an object, but also yourself, your opinion or point of view on life.
This lesson is really valuable and I will try to hold it firmly in mind. Money is an agreement.
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