Do You Need Help Transforming Your Relationship With Money?
Is money the root of all evil or something that must be embraced? If you can’t answer that then transforming your relationship with money is a must.
Hey Trish Davies, here and I have always been economically minded. Money has been a driving factor in my success, and I feel I have a good relationship with it. Sadly, that is not the case for many people around the world and can lead to a love hate relationship.
There is a saying that “money makes the world go around”! That is very true, but the subject of money is very interesting because of the amount of currencies around the world. If like me, you have travelled extensively you will have seen amazing designs of paper and of coin. Money is a transactional commodity where you hand it over in return for goods and services.
This is how we trade in the modern world, but it hasn’t always been like that. If you go back in history there was a strong sense of bartering with other people. For example, some people would have handed over a chicken for a pile of firewood, but it was still an exchange. An exchange of value for value. It worked then but times have evolved to where we are now.
All Currencies Are Not Equal
Saying al that there are currencies that are perceived to be more valuable than others. The US Dollar is seen to be the most powerful currency on earth and there are countries outside the US that use it in some form.
A lot of the world trading for commodities is done in USD. For our general day to day living you will use the currency of your home country which is probably your main interest.
It is also fascinating that when you exchange one currency for another you don’t necessarily get the same amount back. This is because of exchange rates which can change in a split second which can have a huge effect on people both personally and business.
An example of this would be the Australian Dollar to the United States dollar. On todays rate if you had AUS$100 and exchanged it you would receive US$69 dollars. This could lead to confusion because all of a sudden, your perception is that you have less in your hand. In reality you have the same value in your hand, but it is a different entity.
Exchange Rates Have A Huge Effect
Exchange rates affect both your personal life and when it comes to business. For business it can have a huge effect on profit margins especially if the transaction goes through in the same marketplace.
In an ideal world you want to get the most value when you buy the products, so the unit price is low. Then you sell it at a higher price which is retail and the bit in the middle is your profit. It’s called arbitrage and you want to make the most profit you can.
We need money to survive and function on a daily basis and the way we receive it is through working. You trade your time for money by doing a task of work for a business to produce their products and services. They are then sold to either consumers or other businesses.
You are then paid what your employer deems you are worth. This is your salary which you then put back into the local, national, and international economy. So yes, money does make the world go around and money also goes around the world.
Transforming Your Relationship With Money From Bad To Good
As with any relationship there is two sides. A positive side and a negative side. Let’s look at the negative side first. There is a saying that money is the route of all evil because it can be very destructive in your life if you let it.
If you don’t have a lot of money it can be something that really effects way you live. The cost of living in some parts of the world is very high so the pressure is on to get enough in to pay your way.
Sometimes people feel the need to borrow money to survive but this can be destructive. They may incur extortionate rates of interest which then puts them even further behind. The result is that they continue to need more and more. It is a vicious cycle.
Some people resort to criminal activities to get what they need, and this can have serious repercussions on that person and other people in society. Due to these scenarios money is not a friend, it is more like an enemy that rips people apart.
The other side of the coin is where you have a lot of money but that can bring many problems. Sometimes people are never satisfied, and they want more and more. Maybe they live right up to their means, so they need more to survive. They have very little respect for money, take it for granted and don’t appreciate it.
Also, they become flash by buying expensive cars and flaunting their cash. If you can remember the 1980’s you will have seen Yuppies driving fast cars. Then they were drinking bottles of champagne costing tens of thousands of dollars.
Now there is nothing wrong with working hard and getting rewarded for it, but you can still keep your self-respect. We all like nice things but do it with a bit of class and show gratitude.
Money Can Bring Out The Competitive Streak In You
Money can make you very competitive and there is a saying that “you need to keep up with the Jones”. This means that you see people around you who apparently have more than you! This bring out the green-eyed monster that is jealousy. You try and copy them just for the sake of appearances which is very shallow.
Suddenly having access to a lot of money doesn’t necessarily make you happy either. Most places around the world have a national lottery system and there have been thousands of millionaires created overnight.
The trouble is after they have won, they don’t wat to do with it. It has resulted in a lot of happy relationships breaking down due to the pressure. Money has become very destructive and, in many cases, unrepairable.
The Positive Side To Money
The other side is that money can be your friend and you have a great relationship with it and put it to good use. People work hard and save up for something that they really want. When they get it, they have achieved a goal that they have set in life and then rewarded themselves for success.
They really appreciate it and have a great sense of self pride and esteem. They don’t flaunt it and stay very reserved and respectful and good for them.
Also, money can help lots of people. If you are fortunate through hard work or even luck like winning a lottery you can use that to help so many people less fortunate than yourself.
Charities can benefit from your generosity and it gives you a great sense of satisfaction and purpose. Usually this is something that happens under the radar and not for public knowledge which is the best way. Let your kindness do the talking with the least attention possible.
Transforming Your Relationship With Money Can Be Your Stress Release Button
One good thing about having money is that it can take away takes the day to day stresses of life. We all have bills to pay and when you are comfortable you can live a much more relaxed way of life.
It can mean that you don’t need to work so hard and have more time to do the things you love to do. Therefore, it can give you the most valuable thing in life which is freedom which is what we all probably aspire to.
You can use it to travel the world and experience things that you otherwise only see on the television. Due to the success I have achieved I am in the position to travel both for business and pleasure.
Money can also be invested into you and your personal development. I always look to improve myself as a person and I invest in my education. Also, I have coaches for different aspects of my life, and this is possible through having enough money.
If you respect money for what it is worth, then you can have a very healthy relationship with money. You don’t need to be a millionaire to enjoy the money you have. It can bring much joy if you value it and are responsible with it.
The Evolution Of Money
Earlier I said that money has not always been in the form we have it now. For the last 20-30 years it has taken another evolutionary step in relation to how we receive it.
For most of us our money is just numbers on a computer screen when we log into our bank account. Sometimes we never touch money as it gets transferred from one account to another. Also, we use plastic cards to pay for our items. Therefore, it has become digital money and there is more access to credit now than ever before.
Over the last few years, we have seen the emergence of Crypto Currencies. These can now be used to pay for your everyday products. Many online retailers now accept Crypto currencies and it will be very interesting to see how this evolves. Who know in years to come the Crypto world will take over and replace what we use today?
In summary we need money to survive but it is how you use it that determines which relationship you have with it. It may require you transforming your relationship with money. Money certainly helps but it doesn’t mean guarantee happiness. There are millions of people living a somewhat basic life who are happier than multi-millionaires!
A life of freedom and choice
Trish Davies
Trish Davies International
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