Why make money in 2021

Whether you are an entrepreneur, a founder, running a startup, or an employee in a company, there will come a time when the question arises: “ Why make money ?” Finance is a taboo topic in society that few people like to talk about. We admire athletes and celebrities and envy their earnings. But we feel awkward when we imagine ourselves being wealthy. All this is due to a lack of understanding of why you need to earn money .

But before you start, pay attention to the course on money thinking from Ilya Sitnov.

Your own home, a car, monthly provision of necessities for yourself and your loved ones, a vacation once a year - you have all this, then why earn more? First, a person needs to satisfy the needs of the first level:

food;
warm;
rest;
respect;
Love;
friendship;
self-esteem;
self-realization, etc.

When this minimum level is reached, many people wonder what to do next.

The alternative is terrible!

The opposite of having a lot of money is not having enough of it or, even worse, going broke or bankrupt. If you have opened your own business, developed a website, or invested in a franchise, the lack of financial reserves may lead to a lack of resources for business development. Doing this without the means is like driving a sports car on a race track with the emergency brake on.

If you are an employee and think like this: “ Why do you need to earn that kind of money ? Every month my salary comes in – it’s enough for me to pay off my debts and buy food.” We hasten to disappoint you - lack of finances negatively affects you. Food and clothing of poor quality, uncomfortable shoes, an apartment located far from work, and so on - this is due to lack of money.

It doesn't matter if you work for someone else or for yourself, start earning more because the alternative is terrible.

The appearance of the first coins

Metal money in the form of coins was created in Lydia (Asia Minor) back in the 7th century BC. Previously, Lydian residents also used the opportunity to exchange until they appreciated the value of gold bullion. The trade involved pieces of metal of various sizes. They had to be constantly weighed. The creation of coinage eliminated these difficulties. In addition, the growth in the amount of money began to exceed gold reserves. We had to abandon the gold standard.

The Persian king Darius I launched the coin in the 6th century BC. It was distinguished by its high content of pure gold - 8.4 g. It was used not only in the territory of the kingdom, but also abroad. Taxes were paid in gold “gifts”. They participated in large trade operations.

The King of France, Charlemagne, tried to restore order to the treasury. He ordered the minting of coins with his appearance. People who refused to accept this form of payment could face corporal punishment or a fine.

The word “coin” (from the Latin “moneo” - “I advise”) appeared thanks to the temple of the goddess Juno-Coin on the territory of Ancient Rome, where metal money of a similar type began to be issued for the first time. Later, other states began to mint coins, wanting to create an individual image.

In 1944, the US dollar was recognized as the only currency that was backed by the value of gold. In the 1960-70s, metal money made from precious metals ceased to be issued. Only small coins remained in circulation, which had practically no value.

Inflation is a thief

The cost of food, gas, education, insurance, housing and doing business increases, but wages and income either do not increase or do not increase as rapidly as the items listed above.

Inflation, or as it is also called “hidden tax,” is an invisible thief that eats money not at the time you receive it, but when you spend it. This problem can be easily overcome if you earn more.

Machines print money every day. Therefore, it is not worth thinking that it is simply impossible to receive more than today’s income, especially when you consider that more than $41 trillion has been launched into global turnover. There is no financial disadvantage, except for the one that was invented in your head.

Even if earnings are not encouraging at the moment, remember that inflation exists. Thanks to this process, after just a few years, your income will be much less.

Time value of money

During the existence of money, people have formed many concepts and theories about it. One of the concepts was proposed back in 1202 by the famous mathematician Fibonacci. He formulated the golden rule of business: “The amount received today is greater than the same amount received tomorrow.”

We know all this now. The value of today's money is higher than the value of the same amount received in the future and even tomorrow. This is why (though not only) banks require interest on their loans.

From all of the above, two extremely important consequences that any person seeking to become more financially literate needs to understand:

It is always worth considering the time factor when conducting financial transactions.
Summing up monetary values relating to different periods of time is incorrect.

In order to understand what the value of money is over time, you need to calculate the value of money. This is why discounting was invented.

Discounting is an assessment of the value of a future stream of payments based on the different values of money received at different points in time (“Fundamentals of Stochastic Financial Mathematics”, Shiryaev A.N.)

That is, simply put, discounting will help you find out what the difference is between your profit of 100 monetary units in a year and today. Please also note that it is not only about inflation, but also that if you receive 100 monetary units today, you can invest them and receive additional income, even taking into account the loss of value of the amount over time. Calculating discounted value is important, for example, for investors who want to understand whether their profits will depreciate so much that it is easier to invest the money in something more profitable and not so long-term. You become poorer if you receive the same salary for months or years and spend it on your daily needs.

What does the discount rate depend on? There are five main factors:

1	Profitability of alternative investments.
2	Cost of credit funds.
3	Inflation.
4	The period within which you expect to receive future income.
5	The risk associated with this future income.

For this reason, investments are a good way to save and increase your capital. Investing money in a bank essentially only allows you to save your money. It is also possible to increase your capital by putting money in a bank, but this becomes possible only in the case of a long term and compound interest. However, remember that in this case there is a serious risk that the bank will fail and you will lose the entire amount. And at best, you will return only part of it.

Compound interest is a good way to earn income because interest also accrues on interest. There are known cases when relatives became millionaires only because their ancestor invested a small amount of money into the account, and a century later the agreement was discovered. Of course, the bank had to pay a huge amount, but it received publicity for its longevity and attitude towards customers.

We will not give complex discounting formulas here, but we will give a simple example. Let's say in one year you expect a profit of 121 monetary units at a discount rate of 10%. Then the value of your future 121 units will actually be 110 units -121/(1+0.1). If in two years, then 100 - 121/(1+0.1)2. This is the time value of your money.

As we wrote above, the cost of money is also affected by inflation. Let's take a closer look at it.

Money is freedom

Stop going to work to earn money. Choose a different goal, such as giving yourself and your family freedom. Most wealthy people, when asked: “ Why earn a lot of money ?”, answer the same: “To be free!” Only complete freedom will allow each person to try new things (from food and clothing to travel and hobbies), make new investments and have more choice. Wealthy people don’t care how much money they have, what matters to them is what they can afford with it.

Remember that someone will eventually get your “more” if you don’t try. People complain that they don't have money, but most don't even make any attempts to improve their financial situation.

Important! They earn big money and achieve financial independence so that freedom of choice appears.

Basic functions of money

With each new century, money acquires new specific functions, but some of them are universal. We will look at them:

Measure of value . Money is capable of changing and measuring the value of a product, therefore it is a standard for them. The form of manifestation of the value of a product is price. Price is the cost of a product expressed in money. Since at the very beginning of its existence money had an independent value (the silver and gold it contained), then initially the value of goods was correlated with the value of money through the ratio of social labor spent on their production. Nowadays, with the availability of loans, electronic money and advertising funds, a lot has changed.
Sharing tool. This is the original function of money, it means that you can exchange your goods for money and then use it to purchase the goods you need. Over the millennia, dozens of others were added to this main function, completely changing the economic picture of the world.
Instrument of payment . This function arose in connection with the development of credit relations. In this case, there is no reciprocal movement of money and goods. If you took out goods on credit, you will need to repay the amount of debt expressed in money, and not in goods. This function is also embodied in wages or making payments to the budget.
Means of circulation . In this case, money acts as an intermediary in the circulation of goods. And this is where the liquidity indicator plays a key role. You can sell your goods today and buy raw materials whenever you want. A person can buy the goods he needs in one place and sell them in a completely different place - that is, money overcomes spatial and temporal restrictions.
Storage medium . Not all money can and should be put into circulation immediately. A person can accumulate for a fairly long period of time, and then make some expensive purchase or order a service. The downside is that inflation is possible, which means the value of money will decrease.
World money . Trade and loan relations are established between the countries of the world, which led to the emergence of the so-called world money. They function as a universal means of payment. Currently, five currencies are considered such: the US dollar, the euro, the Japanese yen, the British pound and the Swiss franc. From October 1, 2021, the Chinese yuan became such a currency. However, people have learned to convert electronic money into 17 currencies, which significantly simplifies the process of commodity-market relations between countries.

As was said, the functions of money are constantly changing and supplemented, but the above ones have been universal for a long time. In connection with the emergence of new electronic money, as well as cryptocurrency, new functions may soon be invented and along with them the essence of money itself will change.

Provide for your child

Our parents, for the most part, are accustomed to working selflessly to provide their children with love, support and education. But spiritually, they are used to living modestly. Robert Toru Kiyosaki would call them “poor dad” (a reference to R. Kiyosaki’s book “Rich Dad Poor Dad”), because the main advice of our parents is to study well, go to a good university and then you will find a good job.

The modern world has come a long way. The thinking of our parents no longer works in today's difficult times. That is why I want to give my children not only financial support, but also competent and effective advice.

Is there happiness in money?

Often people in society utter negative phrases towards money, for example: “Money is not the main thing”, “Money will not make you happy.” There is one precise explanation for these phrases: big capital is, of course, not the final and not the only goal that is achieved in life. Money also does not guarantee happiness, but at the same time, it does not make people unhappy. This means that most people remain interested in receiving large amounts of money, and this is absolutely normal.

The idea of wanting to make a lot of money is only bad for those who don't have enough. If you need to expand your living space, some idea or unplanned emergency arises, or a competitive business decides to destroy yours, no amount of negative statements about finances can save you.

How and why did people start using paper money?

Since it became possible to save your money for a long time, rich people have appeared. They were very afraid for their bags of gold, because they are not so easy to hide from thieves.

At this stage, it was already possible to give your money for safekeeping to the treasury. It was a government body that dealt with the accounts of public money and its storage. It was a very guarded place. Therefore, the rich, who were afraid for their savings, could leave their money for safekeeping in the treasury, for a certain payment.

They received in return something like a paper receipt, indicating how much was left for safekeeping. With this piece of paper they could then return and get their gold money back. But instead, people began to use such pieces of paper as direct payment for goods. This is much more convenient than going to the “bank” again, getting gold money back and only then taking it to the market for shopping.

It has become much more convenient to use such pieces of paper than metal money. Therefore, over time, they became more and more popular among people, and they began to be perceived as money.

What does “wanting to make money” really mean?

What is the monetary system

The monetary system is a financial circulation in a state structure enshrined in law.

The basis of the monetary system is fiat currency, which is called “national”. Most often, each country has its own money.

The monetary system determines:

The procedure for the circulation of foreign currencies;
Issue of coins;
Rights and obligations of the Central Bank;
Operating rules for commercial credit institutions;

Each country has the following mandatory components that fiat money requires:

Name (ruble, dollar);
Abbreviation (RUB, USD);
Symbolic notation (?, $);
Digital code (for the ruble 643, for the dollar 840);
Name of small change coins (kopecks, dollars);
Banknote denominations;

The issue of money is controlled by the Central Bank of the Russian Federation. Direct production takes place at mints. In our country, this is Gosznak, which includes several factories:

Moscow printing factory, printing house and mint;
St. Petersburg Mint and Paper Mill;
Perm Printing Factory;
Krasnokamsk paper mill;
Research Institute;

Money as a medium of exchange and quantity theory states that there should be enough money in the system to satisfy the following equation:

M×V = P×T

Where:

T (Transactions) — number of transactions;
P (Price) — price level;
V (Velocity) — circulation speed;
M (Money) - required money supply;

The monetary system is regulated by the following documents:

The Constitution of the Russian Federation;
Law “On the Central Bank of the Russian Federation (Bank of Russia)”;
Law “On Currency Regulation and Currency Control”;
Law “On Banks and Banking Activities”;

Money is a means to an end

The top of the mountain, as already mentioned, is the achievement of the main life goal. Having a lot of money will give you the freedom you need. Money allows you to provide for all aspects of life at a high level, while having complete control over your finances and the freedom to make choices. And most importantly, money allows you to enjoy life and be constantly close to loved ones.

When a person earns money, albeit a lot of money, without fundamental principles, then he most likely will not achieve success either in a year or in 10–20 years.

Only the understanding that you are getting closer to achieving your life goal every day can properly motivate you and help you overcome all kinds of difficulties.

What is money?

Money is a kind of product that, in fact, is a general and universal equivalent of the value of many other goods or services. Karl Marx, for example, noted that all existing goods can be easily measured by the degree of effort and labor expended on their production. This can be done, for example, by comparing the employee’s qualifications and working hours. Thanks to this comparison, we will be able to determine the price of absolutely any product. This can be done with the help of another universal commodity - money.

Money is needed to determine the measure of value, to make savings and payments. At the same time, all finances must be supported with something. Perhaps this is with the help of precious reserves. In the Russian Federation, such a reserve is gold.

How will financial freedom change or transform your life?

The initial answer to this question has long been: “spend time with family and friends” and “do what you really enjoy.” While these reasons are certainly true, they are not strong enough to motivate every person in the long term.

Achieving financial freedom is like slowly climbing a mountain. There are problems along every stretch of this long journey. That is why the main thing is to find true motivation, which will be sustainable and will help you overcome the path to this peak in order to achieve a specific goal.

Important! Financial freedom is more than a desire. This is the goal, sometimes of a lifetime. This explains the sacrifices each person makes in order to rise and fixate on this peak.

False value of money

In addition to the main and qualitative reasons for earning money, there are also false ones. They are based on negative feelings that do not motivate, but, on the contrary, suck energy: fear, pride, envy, and so on. And if you are confident in the false value, and it motivates now, then very soon everything will change. Moreover, not only will your resource state completely disappear, but you will also not have the strength to even carry out everyday activities.

It is worth familiarizing yourself with these values and understanding whether they are inherent in you. If yes, then don't worry. Understanding what the mistake is and how to correct it is already success.

And remember, if you are already addicted to a false value, the worst thing you can do is start blaming yourself. Better try to find the right motivation to replace the wrong one.

Security as the main value of money

More often than not, finance is not just a tool that allows you to ensure everyday life, but something more. What is their main value? Why do people earn money ?

Many people believe that money cannot buy friendship, love, health, happiness and other spiritual aspects. But there are those who consider this nothing more than another myth. They are sure that health and education depend only on the size of their income. When there is money on their card, they feel confident and completely safe: as long as they have money, nothing irreparable can happen to them.

Buying time

It is worth returning to the question of why money is needed. Three undeniable advantages of finance will be outlined below.

The first and probably the main advantage of money is saving time. Unfortunately, we cannot buy for ourselves even an extra hour of life (as is presented, for example, in many science fiction films). However, for a certain share of finances, it is quite possible to buy someone else’s time, thereby significantly saving your own. What exactly are we talking about?

Repairing a car yourself can take a significant amount of time; and in the end, it will be impossible to guarantee that the car is perfectly repaired. And if you give it to professionals, then your own time will be saved, and the car will be properly repaired. The same can be said about ateliers, hairdressers, laundries, etc. All this is called the service sector. Various companies that are ready to perform this or that service significantly save our precious hours. And again, money contributes to this.

Confidence in power

This value is a little similar to the previous one, but it is based not only on fear, but also on pride and envy.

Such people also believe that money can buy anything. They have no qualms about giving bribes in order to get a desired position or to avoid punishment. They are used to solving even familiar and everyday problems for money.

At first glance, a person who is sure that the value of money is in its power is very generous and wasteful, but this is not entirely true. If he holds management positions, he tries to pay his employees as little salary as possible. Sometimes he even forces his subordinates to endure bullying and humiliation.

Such a person despises all people who earn less than him. And at the same time he is ready to serve those who have greater income. The motivation here is the fear of earning less and falling to the same level as those he despises. If he loses money, he will lose himself.

Era of paper money

Over time, the world began to switch to paper money. In different parts of the world they began to experiment. But the first attempts ended in the complete depreciation of the entire issue.

Demonetization is the process of moving from coins to paper.

The first paper money appeared in China in the 12th century. Sweden was the first European country to distinguish itself in 1661. In Russia since 1769 (they were called paper notes).

It is worth emphasizing once again the fact that precious metal coins have physical value. Paper money has no physical value, but due to popular belief and mass acceptance, it is considered equivalent to value.

Money issuance is possible through:

Treasury tickets (or they are called government tickets). Not produced in our country;
Banks (act as credit money);

In the Russian Federation, the main currency is the ruble, which is regulated by:

Federal Law of July 10, 2002 No. 86-FZ “On the Central Bank of the Russian Federation (Bank of Russia)”;
Civil Code of the Russian Federation (Article 140);

Misunderstanding of freedom

The main goal is to do nothing. Such people dream of inheriting or winning a large sum of money. They want to use it to buy themselves a house in the village/go to a warm country, and so on, to get rid of an unloved job and the need to save. That is, freedom for these people is to do absolutely nothing.

This is perhaps the most common mistaken goal. It occurs in people who are tired of routine, who work a lot and have little rest, while the money they earn does not stay in their hands. Such people no longer remember or do not yet know what interests and hobbies they have.

In addition to being the most common target, it is also the most dangerous. Most often, if a person does not realize in time that he needs to reconsider his attitude towards earning money, he falls into depression.

But in fact why

On the other hand, if you look through the prism of American billionaires, and not a Muscovite with profitable points in every shopping center in Moscow (the man is spinning, and he’s great), then issues such as comfort, meeting all the needs of the family, and so on, fade into the background. Many people stop thinking about this after the first billion.

Look at what Gates or Musk are doing. Gates now does a lot of charity work. Invests millions in developing artificial meat to solve problems of scarcity of arable land and hunger in poor regions.

Musk more than once risked losing his entire fortune by launching his next project, but as a result, SpaceX is now sending satellites into orbit for NASA, and Tesla has turned a profit in 2021. They develop themselves and share their discoveries with us.

They strive to be remembered in history books not as the richest, but as those who became the engine of progress in their time. But that's the only way! Such people do not stop there. Therefore, even today they can feel the taste of life.

What does 1 billion dollars look like in $1 bills:

Connections as the main value of money

This goal can be described in two sayings:

"Brother loves rich sister..."
“If you have 100 rubles, you will have 100 friends!”

This type of people believes that they need to earn money in order to have wealthy and famous people next to them. Cunning people are most often mistaken for close friends and leave a person alone at the slightest problem.

A person tries to buy love and friendship with money. He is ready to give expensive gifts, if only the right person is nearby and creates the appearance of a close relationship.

Basically, people who believe that earning money is necessary only to “acquire” connections are not confident in themselves and are afraid of loneliness. The main motivation is to be needed by as many people as possible.

Properties of money

Liquidity. Can be exchanged for any goods and services, a universal exchange tool;
Strength. External influences are not scary;
Multiplicity. Cost can be determined with high accuracy;
Security. They are protected from counterfeiting and are uniform;
Storability. It can be stored for a very long time without any depreciation, only inflation reduces the value;
Compactness. Convenient to carry;
Scarcity. There should not be too many of them so as not to cause increased inflation;
Price. Must have value, otherwise they lose their main meaning;
Transmissibility. Can be transferred to another person without any records;
Abstract. They carry value, but in a physical sense they have no value;

The concept of money can be explained from different points of view:

Ordinary. A familiar understanding to everyone: that money can be exchanged for goods.
Legal. Legislatively regulated and issued by the state.
Economic. They are the main product in which you can evaluate the success of a business, idea, or investment.

In the modern world, money has begun to influence a person’s social status in society. If there is money, then the person has influence and power. Such a person can exchange money for a more comfortable life.

We decide for ourselves why we earn money.

There is a reason to become financially secure, and not just one, but only you can decide how to relate to money - admire it and elevate it into a cult, fear and beware of it, or respectfully accept and understand that it is needed to provide the basics of life.

It is this choice – how to approach finances – that is related to exactly what kind of income a person will have. If you constantly blame yourself, compare with others and envy them, then you will live your whole life with this attitude. It is understanding your value and inner wealth that will help you gain confidence in all areas of life, including finances.

If you constantly think that everything is better with your neighbor and this is not fair, then the main motivation will be the phrase “so that it is no worse than others.” That is, a personal goal will become “public.” Of course, any motivation, whatever it may be, will be good at the beginning, but over time, mental devastation will set in.

The history of money

Money first appeared long before our century. There is some debate as to which country they first appeared in. Most likely, in different parts of the world their own equivalents of money appeared independently of each other for natural reasons of need for them.

Over time, society came to the conclusion that precious metals are the best equivalent of money. Namely gold and silver.

Gold and silver have important qualities underlying money:

Rarity. Precious metals are rare in nature, so the chances of severe inflation were minimal;
Safety. Do not deteriorate over time;
Small in size. The value of even a small piece of gold was quite large, so there were never any problems with storing it;
Stability. They always had value and wanted to exchange goods for valuable metal;

Gold standard;
How to buy gold - detailed description;

For convenience, coins were created from gold and silver. This way it was possible to break down the amounts into exact ones.

In Rus', coins had different denominations:

denga - a half-kopeck coin, 1/200 ruble;
polushka - half money, one-fourth of a kopeck;
penny - two kopecks;
altyn - three kopecks;
nickel - five kopecks;
ten kopecks - ten kopecks;
five-alty ruble - fifteen kopecks;
two kopecks - twenty kopecks;
half - half a ruble, that is, fifty kopecks;
ruble - from the verb “to chop”;

Foreign coins also occurred in Rus'. They were called:

nogata;
cut;
veritsa;
shelyag;

Coin Terminology:

Obverse - front side;
Reverse - the reverse side;
Edge - rib;

The standard for coinage in Rus' appeared in 1534 thanks to Elena Glinskaya.

Do you want to earn money?

Before answering this question, discard all stereotypes and other people's opinions. And if the answer is “Yes!”, then what’s stopping you?

If you don’t know why you should make money , then start with your collateral. Start eating better, join a gym, buy a subscription to the library/online cinema, in general, provide yourself with basic needs. Perhaps, after this, you will understand why you need to earn more and find your goal.

Of course, everyone wants to be financially independent with minimal expenses - for example, perform a magical ritual or whisper your request to the water, and the next morning you will no longer need anything. But it doesn't work like that! You may think that you’re just unlucky, that you’ve been jinxed, and so on, but don’t you think that this is some kind of childish way to get rid of problems? To become wealthy, you need to work and earn money.

Stereotypes that make it difficult to understand the purpose of making money

If you want a lot of money, but cannot understand why you need it or are embarrassed by your desire, then read these misconceptions. Are you sure you don’t believe in them?

Rich people are not like ordinary people

This division is wrong. Wealthy people are ordinary people, they don’t grow taller and they don’t catch the connection from space. Many people believe that the more money a person has, the more immoral and impudent he is. There are unworthy people everywhere, both among the poor and among the rich.

All evil is in money

Evil, in fact, is not in striving for security, but in earning money just for the sake of money, while forgetting about the feelings of other people. Of course, when a person thinks only about finances, this is wrong. But everyone can change their dreams and adjust their perspective on life.

I've already lost money once, I don't want to do it again!

Most people have phobias. And even if after a while there are no prerequisites, the fear remains. The same thing happens with money. The important thing is that everyone has fears and there have been negative situations, but everything can be changed.

Why does a reasonable person need money?

The analogy is something like this. If in winter the electricity, gas or water in the apartment is “accidentally” turned off, then life in it will become impossible. But how to live in a frozen concrete cell in which it is impossible to cook food and there is nothing to flush the toilet with? What will the residents of a 20-story building do if the entire house is disconnected from the system for just 10 winter days?

Here is another analogy that shows the illusory reliability of the system.

What will the townspeople do if they stop supplying food to the city? Nothing grows in the city, so it is completely dependent on external supplies. Already, most of the products are supplied to the country from abroad. And the less that is grown in our country, the more dependent we become, the more often we bend over backwards for food.

It’s the same thing with working for my uncle.

As long as the employer needs you, he pays you. And he pays as much as such a specialist costs in the labor market, where there are more of these specialists than needed. In general, it doesn't pay much. And he does the right thing. Maybe this will make a specialist think: is it worth working hard for pennies?

And a crisis is also good. Because it forces you to think about the meaning of life, about your purpose. For example, may a person’s destiny be to stand behind a store counter or lead salespeople. Even if a person manages stores, is that his purpose?

Don’t worry – I’m ending on a high note :). I understand that when you want to eat, your thoughts revolve more and more about money than about anything else.

So, money! What are they needed for? Below is a list of obligatory expenses of a civilized person. Even if he cannot afford them, he still strives for them. This is how it is programmed by the system. 1. Buy groceries or pay the bill at a restaurant. 2. Buy an apartment or pay rent for rented housing. 3. Pay for utilities: gas, electricity, water, telephone, garbage collection, heating. 4. Pay for mobile communications and Internet. 5. Pay for children's education. 6. Expenses for public transport or gasoline and car repairs. 7. Buy a car. 8. Buy furniture and equipment for the apartment. 9. Make repairs. 10. Buy a phone and a computer. 11. Buy clothes, jewelry and cosmetics. 12. Buy vitamins and medicines. 13. Buy household chemicals and hygiene products. 14. Buy cigarettes, alcohol, etc. 15. Entertainment and recreation expenses. 16. Travel and vacation expenses. Do you feel that the vast majority of expenses are imposed by the system, technocratic civilization and urban lifestyle? Oh, again I'm talking about high things.

You need a lot of money. Where can I get them?

Not at work.

If not at work, then there are only four options left: 1. Work for yourself - create a business. 2. Earn income doing what you love. 3. Change needs to reduce costs and create conditions in which costs are reduced. I am a supporter of the golden mean. I don’t like extremes - they always disrupt harmony and lead away from the truth.

Ideally, of course, you should do only what you want to do. Then, as they say, there will not be a single working day in your life. You need to do what you love and constantly improve your skills at it. This applies to both working with your hands and working with your head.

When a person becomes a master, his services will be expensive. And it is not he who will look for the client, but the client. But while a person is still in his infancy, he needs to make his favorite business profitable using entrepreneurial moves. Of course, business will take time away from creativity, from what you love, but this is a forced concession to the ideal, since we live in a system and do not yet know how to live otherwise.

About needs Most often, the proposal to change needs in the direction of reducing costs is perceived with hostility by people. Like, pasta instead of red caviar?! Never!!! But this is not about reducing the level of comfort, and not about harm to health.

On the contrary, many expenses are associated with harm to the human soul and body. What's wrong with drinking less, smoking, losing your health in bars and killing time in clubs? Is it bad to exchange restaurant food for homemade food, and go to the country house with your children on the weekend, not to an entertainment center?

About the eternal But what is it: to create conditions in which costs are reduced?

The expenses listed above do not bring joy to a person. And everything he spends money on is destroyed, becomes unusable, becomes unfashionable and requires new expenses. Everything he does is temporary. I propose to start creating the eternal. I propose investing money in creating conditions in which costs are reduced.

In order to say fewer words, I will say what I do. And let me say it sincerely, directly, as it is.

I am creating a family estate. You have probably already heard that in every region of Russia (and in some regions of Ukraine, Belarus, Moldova, Latvia, Kazakhstan and other countries) people create settlements based on family estates. What does it mean?

I invest the money I earn in the system into a space that makes me more autonomous from it, protected from financial crises, city communications and natural disasters. • I took a free plot of land 100 km from the city (almost 2 hectares). • To begin with, I built a small house. If you build a big one right away, then all the time and all the funds will be spent on it, that is, there will be no joy from creating an estate. • Installed a solar module and a battery - enough for lighting and a laptop. I will install more, and I will buy a gas generator so that there is hot water under pressure in the shower stall. • Planted hedges, woods and gardens. The hedge is designed to protect from winds, from animals, from unwanted guests, to improve the microclimate on the site, birds settle in it, it bears fruit, it is always beautiful, and most importantly, eternal. In my forest I can walk, think, and pick mushrooms. And the garden will supply me, my children and grandchildren with fruits and berries. • Planted a vegetable garden according to principles that exclude digging up the soil, using fertilizers and chemicals. Thanks to this, farming has ceased to be hard work, and soil fertility is growing every year. • Almost finished the well. I’m not in a hurry, since a stream flows almost through the site, I collect a lot of water from the roofs, and five hundred meters away the lake splashes. • I marked a pond. Once I’ve fully thought through what I want to get, I’ll invite an excavator. Fish will not live in a simple pit. We need to make the pond as natural as possible, we need to create a self-sufficient ecosystem. • Every year I plant hundreds of seedlings of forest, fruit and berry trees and bushes. I buy it at the botanical garden or just bring it from the forest. • I also bring stones to trailers and do landscaping. I really like it when colored stones lie on soft moss under pine and birch trees. This makes me feel comfortable • I will plant a pen for goats and a shed for poultry. I will plant it so that nothing needs to be repaired, energy and time spent on it. All this does not mean that I am buried in the ground and do not see the light of God. On the contrary, I do what I want with a clear conscience. I do my favorite thing, improve my skills in it, create my own products, create resources for their promotion. That is, I combine my favorite business and entrepreneurial activity. Now, for example, I’m traveling around Russia and making a film about eco-villages.

I am calm, because I have solved for myself the main problems of a city person: • own housing (in the city it is tens of times more expensive, which means you need to work tens of times longer or more efficiently) • paying for the right to live in it (when electricity, water and your own warmth, you don’t need to pay for them) • environmental friendliness of housing (living in an apartment is very harmful) • space around housing (there is none in the city) And a planted forest, garden, hedge, berry bushes are something that grows on its own and with everyone every year it becomes more beautiful and functional. The vegetable garden, of course, requires attention, but due to the fact that its fertility is growing, it requires less and less effort and time. In a few years, I will provide myself with 80 percent of healthy foods.

So, every day I feel like the value and self-sufficiency of my space increases even without my participation.

What expenses do I now face compared to a city person? 1. Products. When the garden and vegetable garden bear fruit, the costs will be meager. 2. Apartment. It will be necessary to build a house for a large family, but it is 10 times cheaper than a multi-room apartment. 3. Utilities: I fill gas cylinders and buy firewood. 4. Mobile communications and Internet. 5. Education of children. I educate my children myself. 6. Gasoline and car repairs. This remains the case, although I use less gasoline, since I don’t get stuck in traffic jams and leave the estate 3-4 times a month. 7. You need a car. It speeds up the construction of a house and the arrangement of space tenfold. 8. Furniture and appliances for the apartment. My favorite furniture is IKEA :). I don’t use any equipment except a washing machine and power tools. 9. Repair. Unfortunately, everything that man creates decays. 10. Phone and computer. 11. Clothing, jewelry and cosmetics. Of course, I buy clothes. Fashionable, high quality, but not from the latest collections. 12. Vitamins and medicines. This has happened for many years in my life. 13. Household chemicals and hygiene products. This is also not necessary. 14. Cigarettes, alcohol, etc. This has not happened yet in the city. 15. Entertainment and relaxation. My favorite pastime is a cup of tea sitting on the porch of the house :). 16. Travel and vacation expenses. There is no one to let me go, since I work for myself :). And travel happens naturally when I go to seminars, to visit loved ones and on other matters. But in reality, I don’t want to leave my estate or anywhere. So it turns out that there is a crisis outside, but my life is improving every day in all respects. It’s hard for me to realize this myself, but a miracle happens, and I observe it. One thing that bothers me is the conflict between the desire to finish the film as quickly as possible and to return to the estate as soon as possible :).

Main thoughts of the issue 1. Even if you work at work, do your favorite thing at the same time, improve your skills in it, so that one day you can become a master. 2. Earn income from what you love. Over time, it will exceed the income from work and it will be possible to get rid of work. 3. Invest in something that lasts forever. Over time, the eternal will allow you to live in almost complete freedom from the system. PS To some this may seem like general words, like, what exactly should I do? However, here is an example of a working strategy with strong solutions.

Source: kartinamira.info Vadim Karabinsky

How to find your motivation?

Now that you understand why people earn money, you probably have a reasonable question: “How to find the true and correct motivation to achieve financial freedom?” But first, it’s worth answering the question, why do we need motivation at all? It will lead a person in the right direction, will help in a difficult situation not to give up, but to confidently overcome obstacles. It’s worth remembering here that success is not a sprint, but most often a marathon.

To find out your true motivation, imagine yourself as a three-year-old child and ask yourself at least 8 times: “Why?”, and then you will understand the purpose of life. Continuously ask each answer a question until you get to the fundamental one.

Most people stop in the middle of questions (about 4) and think that this is the final goal. But although this answer may be a powerful motivation, it will not be enough to keep you in a resourceful state in the long term.

Five more reasons

For some, the three presented benefits of cash may not seem enough. That is why it is worth giving five more proofs that finance is a convenient and useful thing. Here's what money is for:

Security and control. With financial resources you can really protect yourself from external threats. Moreover, this can even be expressed in everyday situations: for example, when people put on purchased warm clothes to protect themselves from dangerous frosts and cold weather.
Personal value. With money in your pocket, everyone feels a little more important than they really are. A simple thought appears: “since I have earned money, that means I’m worth something!”
Recognition and love. Even the most romantic and sentimental people admit that love and recognition for a person is almost impossible when the latter does not have a penny in his pocket. Unfortunately, most of us are not saints. Therefore, we can only buy respect by earning money.
Independence and freedom. When money comes, responsibility comes. When a person takes responsibility for himself and his actions, he becomes truly free.
Power and might. Although many people like to say that power cannot be bought, it is unlikely that anyone will deny that money will greatly help in acquiring power.

All the evidence presented above will certainly be enough to finally answer the question posed about what money is needed for.

Example of self-talk

Why get out of bed every morning?

- To go to work.

Why go to work every day?

- To make money.

Why do you need to earn money?

– To have food on the table every day, and to invest in your future life.

Why invest in the future?

– To be financially free, spend more time with my family, have fun working and not worry about money when I retire. And to build your own business that will generate passive income in the future. To have time to acquire the necessary knowledge and skills. To invest in assets that will generate income.

Why is it important to be financially free?

This question is the most difficult of all. To answer it, you need to remember your childhood, all your desires and dreams.

Please remember that this list of questions and answers is just a sample. You may have a different life, a different mindset and a different path to making money.

Brief summary

Answers to the question: “ Why do we make money at all ?” so many. Moreover, these answers may differ for different people. But there are main two that resonate for most people.

Firstly, you need money to protect your income from inflation. And achieve financial well-being before it's too late. A person wants to earn more in order to protect and secure his income. To prepare for the future and be able to easily deal with all sorts of problems with work and the economy in general. I want to live financially independently and in complete security, doing what I want, using the resources available.

Secondly, to lay a solid foundation so that children can live fulfilling lives. And still be financially free, doing what they want.

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History and evolution

Historically, money appeared only after a problem with the exchange of goods was identified. Previously, in order to get what they wanted, people offered to exchange one thing for another. If a primitive man needed a tool, he had to find someone who had it and who would be able to make a counteroffer.

Since the life of the ancestors was difficult, and clothing, food, and household items were obtained through hard work, goods were rarely produced not for personal use, but for sale. Only after hunting and berry-picking faded into the background and people began raising livestock and growing crops did surplus produce appear. The tribes traded animal meat for grain. This is how barter was born.

The first money was not like the usual banknotes. The form of currency, depending on the region of use, was:

pebbles;
tea leaves;
tobacco;
salt;
cocoa beans;
shells;
ivory and wool.

History knows examples when it was possible to pay for goods with cattle or fish. “Fur” money was present in Siberia. In fact, one could pay with the skins of animals. It is interesting that this form of currency was used on the farm according to its intended purpose. In countries where deposits of silver and gold were found, these metals were used, acting as money. Thus, according to information about historical excavations in ancient Mesopotamia, that is, 3.5 thousand years BC, silver was one of the forms of currency.

It was only in the 18th and 19th centuries that people stopped mining gold to satisfy their trading needs. A different payment system has emerged. Governments of various countries began to issue paper money. Each banknote had its own denomination. Banks operated by issuing credit money. This is how money circulation was formed.

Now money is credited with 4 functions. They act as a measure of value, are a means of payment, are constantly in circulation and can be a means of accumulation.

Modern money has the form:

coins;
paper bills;
non-cash deposit;
electronic (digital);
virtual.

The emergence of a universal means of payment has had a positive impact on society. Digital money is gradually replacing paper bills and coins. They are endowed with a high degree of security. This provokes constant public demand for cards with a computer chip that store information about the account status of its owner. Unlike paper money, electronic money is much more difficult to steal. The most modern type of currency is virtual money. Unlike all the others, they are not provided with anything, and their number is limited by the code embedded in the algorithm. Moreover, anyone can produce them.

Digital and virtual money exchange expand the boundaries of the concept of money as a medium of exchange - it no longer has a material form, but real things can be purchased with it. Owners of electronic wallets (WebMoney, Yandex.Money, Oiwi), as well as those who know how to earn bitcoins using computer programs, can pay their bills and make purchases without leaving home. The electronic payment system is gaining new momentum.