The Concept of Money (Implications and common mistakes)

The history of money dates back to the Stone Age. The time where humans have not evolved yet and were prey to the situations of unfavorable climates and natural predators. Man would always need things, and where what they need is not within the environment, man would find a way to bring it close.

The world operates on value. The economy is all about finding, giving and receiving value. The figures we see daily are only the physical manifest of the concept surrounding the world today. Which is value for value. Economics teaches us that we make money by being worth it. The law around it is simple. Give me something worth my money.

With the increasing population, centuries ago and the increase in demand for different kind of things came a price on everything. From physical goods to intangible like energy, time, and knowledge, the idea of trade went through different forms of change. Money took on different forms from natural stones to manufactured notes. Now, we have the digital coins that set the motion for greater things to come.

The Necessity of Money

I like money. I like people that like money. Money is the most liked commodity in the world. We know that without money, many things would not be possible. Again, back to the law of economics. Money is the physical attribute of value and you purchase value with money. From trades-by-batter using fine linen, durable swords and kilos of gold, we now find that value (thanks to the evolution of man) is also inside man.

Therefore, many public speakers, authors, filmmakers, musicians, harness the power of economics and create value from intangible things like sound, sight, words, etc. All this made possible by the growing need for different things in our society. The Maslow hierarchy of needs depicts the image where we go from needing basic things to wanting things because we can. So, money is necessary even when trying to create value.

The Implications of Money

What happens when there is a lack of money? I will use my country as an example. As I pointed out in my first blog, Nigeria does not lack money. What we lack are true leaders. The extent of poverty in the country is because of the improper distribution of wealth. Today, we have so called leaders monopolizing the market and using the country as a platform to fill their pockets.

This leads to the majority of the masses subjected to hard labor to make ends meet. The country is so rich in resources that it could climb out of its ‘third country’ identity. However, we have the bad eggs that use it as a bargaining chip, thereby leaving it with its soiled reputation because they need Nigeria to be poor. Amazing! Someone told me that when you fight to keep your relevance you are not relevant. That is what the government of today are doing. Trying so hard to ‘be needed’. Nevertheless, I digress…


The lack of money and the love of it is one fine line. One thing leads to another. Which is why the saying, “Becoming rich is not hard, staying rich is where the challenge lies” is so true in this case. After looking at the evolution of money, and how far it has come in trade and exchange, we see the necessity of money. Value will continue to be created. In addition, at some point, people either change with the times or let themselves rot.

The Implications of Money II: Saving

What is the idea behind savings? To have something to fall on in desperate times. I cannot count how many times savings has ‘saved’ me. I was taught to save from a very young age. At eighteen, I made my first N100,000 from an investment I made with my savings. Before that, my mom had trusted me with N50,000. That was her way of testing me and I did not disappoint. I made back N80,000 in three months.

At the age of sixteen, I already understood the importance of savings and saved as much as I could. It always came in handy especially when I least expected. Today, in my early twenties, I have adopted the habit of saving and not just saving, but saving in both fiat and crypto.

The Implications of Money III: Saving (Mismanagement)

The beauty of life is diversity and conflict. I have made so many mistakes when it comes to money and those mistakes taught me lessons. Three years ago, I came across the Hive Backed Dollar with 20% APR in savings. I did not understand what it was then, until I began to make use of it. I also locked up money in some fiat accounts, letting my money be used in trades by banks and being paid a certain amount of money monthly. Coupled with my writing gigs, I was comfortable for a while until inflation hit like tsunami and the naira crashed like the London Bridge. I knew I needed to get a job. However, my savings kept me afloat for over six months even if by the time I was twenty-one, I was more or less broke. Looking back now, I can clearly see the common mistakes I made that seemed insignificant. These mistakes steeled me into making the right decisions now.

Repurposing

One common mistake I made with money was repurposing. That thing where you use the money for something else with the hopes you can make the money back within a certain period. Do not do that. That is another way to go broke in a year or two. It is easy to give into temptation especially when the need is great but fact, you have a beautiful mind made to provide solutions. Like Brian Tracy highlighted in his book ‘Goals’, deep thinking is very necessary in the art of money making.

Inconsistent planning

Sometimes, planning can be a hassle but the truth is you need a road map when trying to make money. The plan does not have to cover a whiteboard, simple sentences on a notepad helps a lot. As you plan, you may hit a wall when it comes to calculations. I hit that wall all the time. I am so bad with numbers that I get stressed just looking my bank statement. However, this must be done.

Indiscipline

You cannot save or use money right without discipline. So many times, I have said, ‘well fuck it. There is always tomorrow’. There is always tomorrow, but the future will only come when you work for it. I have had to beat down on my spending habits a lot to minimize costs and maximize my earnings. It is working.

Hastiness

Money is not just an object for exchange. Money is a living thing and just like every living thing, it operates by a law. Money comes when you use it right. I understand the urgency that comes with making an investment or buying that asset before it moons still, make your research. I have lost money I was not able to make back thanks to this common mistake. The greed for money is in more than one form and the art of making money includes a formula without it.

Final words

I will not talk about other mistakes here because they are personal but these lessons live with me. Someone told me I am a ‘scaredy cat’ when it comes to buying in and I was okay with that. Let them think what they want. I may not be strong enough now to dip my feet in the murky waters of finance and stocks yet, but I have just the amount of courage and open mindedness to begin a profitable venture when I see one.

ALL IMAGES ARE MINE