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Maintaining a healthy cash flow in life

happy man pumping fists celebrates success under money rain

Brief philosophical take on the origins of money…

For us humans, the need to survive continues to persist at the summit of all our needs. To effectively survive in our world, we require things of value such as food, clothing, and shelter. Although there are some notable exceptions that could/can do it all (such as Leonardo Da Vinci), most people – like the individual cells of the human body – are specialized. Since many of us are specialized in our area of expertise, it is so often the case that we must frequently depend on each other to survive. In this way, our human race is reminiscent of a giant human body with each human representing a single cell. Think about it for a second… your brain cells depend on your heart cells to force the beating heart to send them the rich supply of blood they need to function properly because they (your brain cells) cannot do it themselves. In much the same way that our brain cells depend on our heart cells for adequate blood supply to function, we frequently depend on the expertise and resources of the people around us to survive.

In order to gain access to the expertise of those around us, we very often must give them something they value in return. Ages ago, humans would trade goods and services for other goods and services in what was known as the “trade by barter” system. The problem with this system is that there was no standard unit of trade. I mean who is to say whether or not giving you seven loaves of freshly baked bread is fair payment for one of your goats? The other problem with this system must have been the difficulty of physically carrying around the wares that people were willing to exchange for other valuable things they desired. To circumvent all of this annoyance and inconvenience, we eventually created currency in the form of coins made from precious metals such as gold and silver and used them as a medium of exchange. As time elapsed, our currency morphed from metallic coins into many different forms… from elaborately printed paper notes, to the current digital form that magically appears in many of our online bank account interfaces on the 1st and 15th of every month. Continue reading Maintaining a healthy cash flow in life