How important is money to you

Why Money Is Important

The importance of money is clear when you factor in the costs of necessities to sustain life. It can’t buy happiness, but financial wellbeing is important if you want to provide for your family’s basic needs.

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At some point in your life, you’ve probably heard someone say they don’t care about money; you may have even said that yourself. While this sentiment sounds nice in theory, the reality is — for better or worse — that you shouldn’t underestimate the importance of money.

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Why Do We Need Money?

Money can’t buy happiness, but it can buy security and safety for you and your loved ones. Human beings need money to pay for all the things that make your life possible, such as shelter, food, healthcare bills, and a good education. You don’t necessarily need to be Bill Gates or have a lot of money to pay for these things, but you will need some money until the day you die.

Because money is necessary for obtaining the goods and services you need to survive, an understanding of personal finance is essential. You need to be responsible with the money you earn and save enough for the future to ensure you will still have enough leftover when you can no longer trade your labor for money.

The sooner you start saving your money, the more likely it is that you’ll never face a lack of money or financial stress. In fact, if you save enough and invest wisely, you could even become financially free — which happens when you have enough money to live on for the rest of your life.

Money is a Universal Medium of Exchange

One reason so many people profess not to care about money is that the love of money has been described as “the root of all evil.”

It’s true, materialistic people can let an obsession with money drive them to do bad things for their own financial gain. But in reality, money is nothing more than a medium of exchange.

Money makes it easier to trade your labor for a diverse set of goods and services. The following are some things to consider when it comes to the value of money and why money is important.

Benefits of Money

The existence of money allows you to trade your labor for things that you value. There are many major benefits of money including the following:

Although money can’t buy happiness, freedom, security, and the power to pursue your dreams can go a long way towards making you happy. That’s why it’s so important to work hard, earn money, and learn how to save and invest it. When you start to invest your money, it starts to work for you and help you produce more — and eventually, you should have enough that you can retire.

Downsides of Money

Of course, there are some definite disadvantages of money too, including:

Most of these cons relate not to money itself, but to the way people interact with money and the attitudes people have about money. You can take a responsible approach towards acquiring and saving money without allowing it to cause you problems in your life.

Planning for the Future

Since money is something you will always need, it’s important that you make plans as early as possible to ensure you will always have enough.

Sometimes, you’ll need lots of money to accomplish major goals — like buying a home or paying for college. To make sure you have enough money to do these things, you should set clear financial goals and work towards achieving them.

You need to plan for the day when you can’t earn any more money through your labor because you become too old or sick to work. Saving money in tax-advantaged retirement accounts such as a 401(k) or IRA can be the best way to do that. If you save money in a tax-advantaged account, it costs you less to put the money aside since you aren’t being taxed on it. And, if you invest it, it can start earning good returns.

When your money is invested, the invested funds produce more money — called a return. The mechanism by which money earns more money — and the amount it earns — will vary depending upon the investment. When you buy bonds, for example, your investment earns money because your money is lent to someone (like a government or corporation) that pays you back with interest. When you invest in stock, your investment can earn money because you have a small ownership interest in a company, which may be growing and generating revenue.

If you save enough money, you can acquire things like a home or a college degree can that help you earn a good income. And, you can live off the returns your money earns so you won’t have to trade your labor anymore. In this case, you have the ultimate in flexibility because you can do what you want in life and your needs will still be met.

The sooner you begin saving money, the more your money can work for you — especially if you are taking advantage of compound interest. Compound interest occurs when you earn a return on invested funds, and you then earn a return on that return. It can help your money to grow quickly. If you invest when you’re young, compound interest over many years can turn a small investment into a substantial sum.

Bottom Line: Money is Something You’ll Always Need

Working to make money may seem like a hassle, especially if your job is mundane and you don’t love what you do. Even so, money justifies your labor. Because you’re paid for your work, you receive something of value that allows you to live your life.

While the quest to earn money could be corrupting if you take it too far, having enough money can be quite liberating because it gives you the freedom to buy what you need and do what you like. Just remember, it’s up to you to save so you can use money to shape your future.

Why Money Is Important And The Role It Plays in Our Lives

At some point, you may wonder why money is important and start to analyze the role it plays in your own life.

And our society has plenty of different viewpoints when it comes to money and happiness, how much money is truly enough, and how to better with money.

I’m sure you have heard many of the different sayings about money too, whether funny or to hit a particular point to make you think.

You know the ones, like:

But you’ve probably heard many proverbs, famous quotes, or other sayings from people around you. And while there may be some truth to not let money dictate your entire life and choices, money IS important.

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Why Is Money So Important?

The reason money is so important is that it provides options for you to live a better life that you choose and puts you in control. Having money and being comfortable with finances also gives you freedom and options to decide how you want to live and support the things you care most about in your life.

And yes, it’s true that money cannot necessarily buy you complete happiness forever and greed can make people do terrible things. Look what the hunger for more wealth and money did to Bernie Madoff and how he ruined the many families who invested with him.

But while there is truth to some of the negative connotations to money, ultimately you have the strength to dictate how you use money and if you let it control you.

Money is not everything in this world, but it can be powerful in helping you achieve your goals and let you make the best of the short life we all have.

The Real Benefits of Money

While your whole life does not need to focus on money and accumulating wealth, it is still important to dedicate your time to understanding it and building a strategy.

Look, we all know that more money means you can generally afford a fancier lifestyle, bigger homes, better vacations, and flashier cars. But those material items are not the real benefits of having money and the temporary excitement from those items quickly wanes.

So why is money important?

Money Gives Your Freedom

Money is important because it gives you the freedom to do what you want, when you want, where you want. Sometimes we call this “FU Money,” which means you reach a point where you can just walk away from a job you hate and are not reliant on anyone’s financial support.

Do you have hobbies you want to pursue? A dream to start your own business? Money gives you the freedom to explore those areas and take a bit of risk.

Money Gives You Options

Being able to make choices and have options is one of the best feelings in the world. Knowing you are stuck in a particular situation because you need the money or financial help is frustrating, so removing that from your life is a great relief.

When you have money, you control what you want or don’t want to do. Want to have a different career? Want to move to a different state or country? Want to travel somewhere new for vacation? Do it.

Money Creates Financial Security

One of the most powerful feelings you can have is knowing you do not need to worry about money. Financial stress is a common problem among people and families, which can lift a huge burden.

Whether you lose your job or some economical turmoil happens, you aren’t worried about paying bills, paying to see a doctor for medical reasons, or wondering where your next meal will come from.

Having money and having a financial plan creates more security for you and your family.

Money Can Create More Life Experiences

Life is short and goes by fast, which means you should want to experience the best things life has to offer while you are here.

Hoarding money and never experiencing anything is a waste, afterall you can’t take the money with you to the grave! While that might not paint a pretty picture, it’s completely true.

When you have money, it creates opportunities for you to get more out of life, travel the world, try new things, and get out of your own bubble of where you live. This can also help drive more happiness overall as you are experiencing more that life has to offer.

Money Helps You Give Your Family More

While generational wealth can be a good thing, there is a fine line of instilling in your children good values and work ethic beyond just handing money over to them.

But money matters because you can provide your family with better education opportunities, better healthcare, and a better start in life overall.

There are plenty of children that become spoiled and it creates unrealistic expectations of money while growing up. But that’s where teaching them about money and not giving them every little luxury without hard work will be key.

Money Lets You Give Back

At some point, you may reach a level of income or financial freedom where you can afford to give back. Helping out charities, your local community, or other causes is a great feeling and it can create happiness when you are helping others.

Yes, there are also some tax incentives when you donate to charities, but hopefully, that would not be your main driver to give back.

Those are some of the main reasons money is important and should be things you think about in your own pursuit of financial independence. But I’m sure there are other reasons money might be important to you as well.

The Negative Side of Money

While there are plenty of benefits to having money, there are negatives to it as well. Focusing your energy on making money, saving, and investing is important but it’s a careful balance to not let it consume every little decision you make.

Obsessing Over Money Causes Problems

While we may all strive for money or financial peace, obsessing over money and making money can really cause problems in your life.

When you focus all your time on money and trying to acquire more of it, you can end up destroying your relationships with family and friends. It can also lead you down a path of unethical behavior (see once again, Bernie Madoff) or criminal activities just to get more money.

Having an obsession with money is a destructive disorder that can ruin your life and others. Sure, you may have all the money in the world, but if you trampled over everyone, who is going to be next to you enjoying life? No one or not anyone that you would trust to genuinely care about you and not your wealth.

Making Money Can Cause More Stress

Not only can money help reduce financial stress, but it can also cause more unwanted stress too. Funny how that works, ain’t it?

For those where money is never enough, no matter how much they have — it actually can create more stress.

You find yourself working crazy hours every week, spending every waking moment thinking about money, and even getting anxious over your efforts for more. That stress not only takes a toll on your mental and physical health but affects those around your like family and co-workers.

Can Create More Family Disagreements

In a MarketWatch article, they mentioned that TD Ameritrade found that 41% of divorced Gen Xers and 29% of Boomers say they ended their marriage due to disagreements about money.

While these numbers are just a few years old, money continues to be a common cause for disagreements and arguments among spouses and families.

If you are not on the same page with your spouse or family, money will certainly be a common friction point. And you certainly won’t be in agreement ALL the time, but having similar values and thoughts about money can limit the disagreements.

How Much Money Is Enough?

As you can see from above, there is nothing wrong with the pursuit of financial independence and money. But there can be downsides as well.

The issue begins when you let greed consume you and find yourself doing whatever it takes to make more money. This is when you start to hurt people, alienate friends and family, and end up in a self-destructive path.

The question you have to truly ask yourself is how much money is enough?

This is the best baseline when evaluating why money is important to you and how much should be enough. It’s a good goal and amount where you can live happily and be comfortable in life.

For some people, that 25x goal seems like more than enough, not everyone needs to be like Warren Buffett or the next Jeff Bezos. And for others, they would never be satisfied with that amount.

Happiness fades after a certain amount

It’s a great idea to have a budget, financial goals, and maybe a net worth number you are striving to achieve. That’s never a bad thing!

But often it’s easy to get into a whirlwind of bad spending habits or needing more and more, never being satisfied with what you have.

In a fascinating research topic, High income improves evaluation of life but not emotional well-being by Daniel Kahneman and Angus Deaton, the authors explore the impact of money on your overall well-being.

While the research goes much more in-depth and is from 2010, something to keep in mind as you pursue money and think about your finances.

Final Thoughts

Health and family are some of the most important things in life. If you have those two things, then you are living a pretty rich life. But there is no denying the importance of money and that it can create better life opportunities.

Naturally, money won’t solve all your problems and if you were an unhappy person prior to money, then gaining some wealth may only be a temporary solution.

The real opportunity is to find the right balance where you see money as important, but a tool that can help you create better life experiences and opportunities.

How important is money to you?

Ever since I graduated from my bachelor’s degree, the issue of money has been creeping up slowly in my life.

Even though we don’t talk much about it, we graduates realise that playing time is over. Our next goal is to become financially independent.

And it’s just the first step.

So let’s talk about money.

As a Gen Y-er, I believe in the notion of living your passion instead of working blindly for the pursuit of money. Steve Jobs said so. So did Biz Stone, Jeff Goins and Jon Acuff. So did everyone who quitted their jobs and found both wealth and fulfillment. I have always wanted to be one of them. Like, for the longest time, my dream is to become an author whose first book got read like Harry Potter. Then I’ll sip my expensive wine while signing books. Not likely.

Then I came into the workforce, and I realised one simple truth: not everyone has the luxury to exercise their passion. We all have different priorities.

And this thing about following your dreams? Doing something that makes you eager to jump out of bed in the morning? Something that you would gladly do for free? It will take a long, long journey to complete. What if you’ve got mouths to feed?

Over eighteen months after my graduation, I’m still relying on my parents. I live at their apartment (hence, no rent). My sister pays the bills. I basically just use my money for myself. Yes, I go out there and earn my own income, which also makes me envy those who do a degree full time without a job (I’m current studying master’s). Still, even with a Bachelor’s degree, I’m still not financially independent.

We talk about this a lot, my girlfriends and I. We deduce that there are two types of Gen Y-er: one who believes in following your passion as living a fulfilled life, no matter what your bank account looks like, and another as those who believe in financial security, sucking up to jobs they like but not love to first build their empire. After succeeding financially, they will then think about doing what they love. (Of course, there is a third type who prioritises wealth above all others, but let’s not talk about that.)

We all want to be the first type, and we always believe in luck and that somehow, the doors to riches will be opened at that same time. But I constantly witness the opposite.

If we are living paycheck to paycheck on doing what we love, what about buying our first house? What about our future children and their education? What about holidays and those travel trips that our wealthy friends seem to always go?

It’s not all about passion. Sometimes I have to remind myself that it’s about getting your head above water too.

At 22, I realise that money is a complex issue. You don’t want it to be your boss, but you can’t ignore the problem. I guess I’m not the so-called idealistic girl who just goes for passion like I once was. I still pursue my passion and dreams, but perhaps this time, I’m more responsible in handling my income, and more realistic as opposed to dreamy.

How important is money to you?

Money is pretty important to me, to be honest. I need money to keep myself alive and functioning—for bills, for food, for transportation, etc. Without money, I wouldn’t have a car, wouldn’t have food in the house, wouldn’t have a cell phone, wouldn’t be able to go to college, and much more.

I would like to extend a huge thanks and appreciation to you.

13 Answer s

Certainly having enough to meet life’s needs is very important to me. I can live just fine with the notion that I won’t likely ever be the world’s wealthiest man, or even the richest one in my city. But it’s nice to have enough to live comfortably, be able to travel occasionally, and able to help friends and family when they are in need.

I’m with Mark Twain on this: “I am opposed to millionaires, but it would be unwise to offer me the position.”

I think as long as I have enough money for food and bills and occasionally new clothes (or second hand ones in good condition) then I’m good. Of course, I would love to be rich, but I’d only blow it all on stupid things.

Money is important to me for subsistence, not status. Sure, it would be really nice to net more than minimum wage, but I have enough to feed, clothe, and house myself, and I also have medical insurance in a country where that is not a social guarantee (and enough money to cover bills that my insurance does not cover…ugh.)

I like to have enough, but even that at times is difficult. I do think money is very important. Here for example it can buy you healthcare, or a visit to the doctor. It has become very important to me of late for loads of reasons.

However, I have no desire to spend money on what I call stupid things. Like designer handbags and LV Shoes. Shame on those people. Rather feed the poor!!

The usual.
When I have had plenty of money it is not important, when I do not, it becomes tantamount to everything. I have been on both sides of the financial fence several times over and as long as my basic needs are met I am fine, I have no desire for status, but I do desire to be comfortable and not in need, as we all do.

Just enough to live with dignity. The basics, medical coverage which is essential as one gets older and enough to make ends meet.

Much less important than other things.

Like most people, I’ve been through a few rough patches in my life when, for one reason for another, I couldn’t pay the obligations, but I’ve been very lucky and always managed to get back on track. I’m a happy when I have just enough to keep up with my obligations, stash a little in savings, and indulge myself and my friends a bit. I’ve known really wealthy people who seemed a lot less happy with a lot more than that.

Money has never made man happy, nor will it, there is nothing in its nature
to produce happiness. The more of it one has the more one wants.

It’s the cherry on top of the icing on top of a beautiful cake, the cake of life.
That quote was brought to you by nevermindthatshit-itsmongo.com

Can We Agree That Money Is Important?

by Vered DeLeeuw · 65 comments

“Money does not buy happiness.”

How many times have you heard this? Lots of times, I am willing to bet. Our culture sends us two very conflicting messages about money. The first, a message that tells us money is everything. Celebrity culture, the rich and famous, Wall Street greediness, the twinge of jealousy we feel when we see a house bigger than ours, a car newer than our car.

Then, there’s the completely opposite message, the one that treats wealth – and the wealthy – with suspicion, that works hard to teach us NOT to envy them, to see the limitations that wealth has and the potential trouble it can cause. In some families, it gets to the point of feeling that money is somehow dirty, that it’s not a proper topic for conversation, that flaunting what you’ve got is tacky and that being poor is almost a virtue.

Can We Agree That Money Is Important?

But money IS important, and here, today, I’d like to get all of us to agree on this one basic assumption. Whatever we feel about money, people with money, or the pursuit of money, can we at least agree that money IS important? Very important, even? We can go into more detail later on, try to define what exactly it means, to say that money is important, or what kind of money is important. But for now, will you agree with me that dismissing money as unnecessary is a mistake?

It’s Not Having What You Want. It’s Wanting What You’ve Got

“Wealth consists not in having great possessions but in having few wants” is one of my favorite quotes. Having few wants is probably the best insurance against greediness because it’s human nature to keep wanting more, and the more you have, the more you want.

It’s a simple psychological process: you have the basics (shelter, food, clothes) and are fairly happy, although you do worry about dealing with emergency situations; you become wealthier, and you enjoy the extra luxuries very much for a few months, but then it becomes your new “normal.” Now, surrounded by wealthier people, you look around, and you feel unhappy. They have more than you. You want more. But when you get more, you’re unhappy again.

It’s a never-ending cycle and this is what explains why so many ultra-wealthy celebrities keep doing commercials. They have so much, but they always want more. They never get to a point where, if offered a million dollars for doing a commercial, they simply say, “You know what? No, thank you. I have enough.”

Money is an Important Tool

Another quote that I like: “Money on its own is neither good nor bad. It is a means to an end.” Again, this is not to say that money is not important. It is to say that money is not “dirty,” but money is also not everything. Money is a tool that enables you to protect yourself, to build yourself and your family a better life, and to give back to your community.

Money is important because having money means that you will not be destitute. It means that you are not dependent on being employed, living paycheck to paycheck, and having to put up with abuse by your boss because you badly need your job.

Money is important because it enables you to have more control over your life, more freedom to carve out your own path, and fewer constraints on your choices. How many of us are stuck in a career or in a job we hate, but cannot afford to lose because losing our job would mean losing our house and our health insurance? My own mother, a brilliant young woman with a bright future and scholarships to the best universities, back in the sixties, had to give up her dreams, forget about college and start working as a clerk because her parents were so poor and needed her to support them. It’s a sad story of unrealized potential, and the only reason she did not realize her potential was that her parents were poor.

Money is important because it means being able to give your children the best – the best education, the best health care, the best start in life. Of course, when it comes to kids, money can also greatly spoil them, so it’s up to wealthy parents to find a way to give their kids the best, while still teaching them the value of money and not giving them so much excess that their view on life is forever skewed.

Money is important because it means less financial worries. Sure, the wealthy worry too – they worry about losing their fortune, for example. But this is not the same as worrying about being able to put food on the table.

Money is important because it enables you to give back to your community, to pick the charities and causes you to believe in and support them.

Money is important because having money means that life is not a constant effort at keeping your head above the water. Having money enables you to live life to the fullest, enjoy adventures and textures and tastes, make the most of the

80 years you’ve got. This paragraph, more than any of the above paragraphs, is about luxuries – money buys you a more comfortable lifestyle – but is that such a bad thing? Humans are hardwired to seek warmth, safety, and comfort, and having money is a great way to get those.

I Rest My Case

What do you think? Can we agree that money is important, or do you object to any of the points I’ve raised?