There are many different viewpoints on money. Today we’ll pay some attention to why is money important and how our society thinks about money.
When we talk about the importance of money, there are two types of people:
- People who say: “Money doesn’t buy happiness”
- People who say: “People who say money doesn’t buy happiness simply don’t know where to shop” – money quote by Coco Chanel
These are two very different messages around money. On the one hand, there are people who say that money doesn’t buy happiness. On the other hand, there are people who very firmly believe that money is important and it can buy you happiness.
The people who say that money doesn’t buy happiness can have a negative association with money. They see the downside of being wealthy, the problems that having a lot of money can cause, and believe there are far more important things.
Then there is the message that money is everything. This is portrayed by celebrities, the media, and the glorification of greediness – always wanting more, bigger, better.
These are two completely different messages and my goal is to show both sides so you can come to your own conclusions.
Why Is Money Important
In today’s world, it is very hard to deny that money is important. It doesn’t matter what your assumptions about money are, money is an important part of surviving and thriving. Many people write songs about money and others love to spend Bill Gates money on a random website.
Many will dismiss money as unimportant or negative, which can be a big mistake. When you embrace the message that money is important in today’s world, you will get ahead. You can realize your goals and dreams.
For example, my personal goal is to be financially independent. I want to be financially independent because I want freedom. While money is not an end goal, it is a means of getting to my goal.
Without having money I would never get to my goal of reaching financial independence.
Why Do We Need Money?
Money can give you security and safety for you and the people you love. There are certain basic needs that have to be met, such as food, shelter, healthcare, and more. You don’t need to have as much money as Warren Buffett, but you will need some.
As money is important in life, an understanding of basic personal finance principles is needed. You need to know how to make money, save money, and have enough so you can provide for your retirement later on in life.
You will start to save for retirement, set up an emergency fund, and save the money you’re not spending. When you’re saving enough money, you may reach a point in life you’re financially free and you never have to work again.
Money Is A Crucial Tool
What you should remember from this article is this: money is not good nor bad. Money is just a tool, it is something neutral that you can use towards your goals.
Money is a tool that can build up or a tool that can break down. It can allow you to go after your goals and pursue your dreams, grow personally, and make the world a better place.
Money can also be used in negative ways, for example, money can allow you to take advantage of people. That doesn’t make money bad, the tool is not taking the action but the person holding the tool.
How You Can Use Money Towards A Better Life
Money can be used towards a better life, that is why money is important. There are tons of other answers to the question why is money important, including:
- Money is important because it will give you financial independence. From your partner, from your job, and from anything you simply don’t want to do.
- Money is important because it gives you choices. You have the freedom to stop working a job you don’t like, you have the freedom to go traveling wherever you want (pandemic constraints still apply), and you have the freedom to make all the choices you want.
- Money is important because it will give you less stress. Back when I had little money, believe me, I was stressed out. Growing my wealth took a big part of that stress away.
- Money is important because you can give back. To your parents or to charities for example. While being kind to others doesn’t have to cost a dime, it’s a great feeling to contribute to the improvement of the world.
- Money is important because it gives you education. While it shouldn’t be this way, money does provide you with education. If you or your children want to go to college or university, money is an important part of that.
While you may have different reasons why money is important, there always are great reasons to have more money.
It’s not that you need to hoard money and be greedy about it. It’s that money is an important part of our lives and we should make sure that we’re comfortable. Once you’re comfortable you can give and give and give.
Break The Need For More
Money is important. It can provide us with our basic needs to live life, it can give you access to healthcare when needed, it can give you a good education, and it can give you choices.
However, we need to be careful not to glorify money. Yes, money is important. Yes, money management and saving money is great. Yes, we need money and financial resources to survive. No, it is not the most important thing on this planet and money can’t buy everything.
The need for more money is felt by many people. People who are greedy on Wall Street, the people who are charging more than they should for certain services, and the people who want to get rich no matter the costs.
While it is good to think that money is important, that is no reason to chase money no matter what. No matter who you hurt, no matter what you have to do.
How much money is enough is a very important question. You don’t need all the money in the world, but you do need enough to live comfortably.
A study found, very interesting, that after $95,000 annual income (in the US) the happiness did not increase. That means that above the $95,000, the extra hours you work or the extra side hustles that you’re working, will not increase your happiness.
Remember that when money comes to us, it often comes at a certain effort in terms of time that you can’t get back.
In the long term, buying more things won’t make you happy you see. That’s why experiences are better than things.
A Bright Financial Future
Money is a tool that you will need in life. Make a financial plan as early as possible, to make sure you have a secure financial future.
The first thing to build a financial future is to save enough money for an emergency fund. Generally, between three and six months of living expenses is enough. When emergencies happen in life, and they will, you don’t have to put it on your credit cards.
Also, write down your financial goals and know how you’re going to reach them. Knowing your goals will keep you motivated and improving on your financial journey.
Do some retirement planning, independent of your current age. The earlier you, the more compound returns will work in your favor. Save money in a tax-advantaged retirement account, which can be a pension fund or a 401(k). You aren’t paying any taxes on that money, which means higher returns!
Besides that, try to pay off debt like credit card debt and student loans. Save more each month, spend less, earn some extra money, stop living paycheck to paycheck, and you will surprise yourself how quickly you can pay it all off.
Money management is an extremely important skill to learn, the earlier you learn it the better.
We shouldn’t forget investing. Investing is one of the best way to grow your net worth and manage your money. Why? Investing in the stock market will earn you money through compounding returns. Your returns will start to earn returns, which means your savings toward your financial goals will skyrocket! Here are 5 simple steps to start investing your first dollar today.
All In All – Why Is Money Important?
Money is a sensitive subject and everyone has their own opinion. The reason for the blog post is to let you think about the importance of money. It’s easy to dismiss money as not important when you have enough to live comfortably.
In today’s world, money is still a means to an end. Don’t mistake money for the end goal, because it is not. Money shouldn’t be chased at the cost of relationships, health, or joy.
Money can allow you to find more happiness, but that’s certainly not always the case. Use money to buy experiences and you will get invaluable memories in return.
Align your personal values with your money and you will experience wealth.
What do you think? Why is money important?
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