“Money is not God, but not less than God” became the phrase in Hindi, if before the money trade was done through barter, what did that society know that such a medium of barter would come in the future that in the society it would be equal to God. Will be considered. Whoever coined this phrase must have seen the attitude of people in bad times, who give importance to money more than man.
The truth of society also says the same, when capitalism was on the rise in the 18th century, the economist David Hume had told about morality and rejected many of Adam Smith’s ideas. Yet trade and capitalism grew with democracy and the modern system of today was created.
Our generation born in the 1970’s or 80’s saw the life of the village where if you ask this generation, how much money was used to live in the day, it used to be very little money and for a long time in the village people used to distribute the produce from agriculture in the village like this. Or used to distribute in very little money, very little money was spent throughout the day.If you look at today’s situation, it takes money to buy seeds, it takes money to buy fertilizers, meaning you cannot buy everything without money, so the importance of money has increased.
Next, we will see in detail how the money will be from history to the future and how it has traveled for society and life. Still, we will not go deep into history, but take only as much as is necessary for us.We will not look at the interpretation of money in a professional way here, we will see in very simple language which is known to practically everyone. When we write articles in such language, then we try to understand the common man and also the professional man in such a way.
What is money ?
Money is a means of barter exchange that provides an equivalent value of one commodity to a person who can use that money to buy another commodity for himself. Earlier this money was made of clay, later it was made of many metals and today we see it in the form of paper. In future it is going to be in digital form.
How does this money come to us? When we sell manual labor or provide services and say we sell goods, we get money in return. To earn money in modern language one has to do job or business.
History of Money –
Talking about India, some remains of clay money have been found in the Indus civilization, they are also found in the Mesopotamian civilization of Iraq, but no one could tell the exact history that who started the money first.Secondly, if we talk about globalization today, Europe and America have established dominance over the whole world on the strength of their language and technology, so the western countries are not ready to adopt the civilization which was progressed from Europe earlier.
The whole world believes that the beginning of maritime trade was spread by Europe, because by going all over the world, they spread their trade through sea and made modern ships at that time which made Europe prosperous.Barter system was introduced from Europe all over the world, but everyone’s means of barter was already in practice in his area. Western countries established their colonies or established their colonies through trade outside Europe and established their practice through this. This paper note is believed to have been introduced by Western traders and first in China.
Money It was a medium to exchange goods and services, so in the initial period, money started from clay money and started being used in different metals. In the monarchy, especially currencies were used, at the same time the practice of levying taxes also started.Which was stable for a long time in today’s paper trend, but now the era of digital money has started and in the coming time, in the next twenty thirty years, the trend of paper can go into history.
Difference between Money & Wealth –
Italian economist Wilfred Pareto analyzed the economy by separating wealth from money when explaining his 80–20 theory.The money that creates wealth attracts more money in the society or, you can say, attracts money. Money works to increase money for the one who has wealth creation. Those who cannot build wealth, earn so much money, they work for money throughout their life.
To say this in simple language, if you want to be financially independent then you have to build wealth. It is easy for people doing intellectual labor to create wealth because they lead the society.Intellectual society decides how the system of society will be. The more you do intellectual labor, the more you will create wealth and the more you depend on physical labor, the more you will work for money, this is the law of money.
Those who do intellectual labor, money works for them and those who depend on physical labor work for money. According to Wilfred Pareto’s theory, 20% of the people own 80% of the wealth, these people do intellectual labor. 80% of the society runs on the guidance of intellectual people above and is more dependent on physical labor, so they cannot build wealth. The phrase that we saw in the beginning has been made by these people.
If these things are finding it difficult to understand, then read once again because it is going to be useful to you for the rest of your life. I am telling such important things here, these things are not taught in any university, it comes from the modification of the society and from the experience which I am sharing with you here.
Magic of Compound Effect –
If I tell this word in Hindi, I will not be able to tell its meaning properly, so I will present it here by keeping it in English only. Compound effect is called the seventh wonder in economics, which continuously creates you money and wealth.Even if you are not working 24 hours a day, you continue to earn because you have made an investment in the past and it returns your investment with constant actions and strategies, this is called the compound effect.
It works like a seed, after the initial investment you do not have to work hard, your money does that hard work for you.Compound Effect This magical formula is known only to some people who know well and how to implement it, only these people know. This is the reason for creating dominance over their money and property.
Types of money –
Money is basically called money and you get to see the types of money in more detail.
1) Fiat money / paper currency –
Money which is a sovereign asset of a country is a paper instrument of exchange, which is controlled by the government of that country. Transactions for which government sovereignty is believed to be substantiated in trust.
2) Commodity Money –
This money was more in vogue than the monarchy, which was made of gold or silver metal and its value was considered equal to the Vastu given in the exchange.
The system of tax collection like today was not there at that time but barter system which was very prevalent in western countries and where he established his business and colony, he established this system there. In India also, gold or silver currencies were used in the polity.
3) Representative money –
Like paper money, it has no such value of its own, but it is a contract which is executed under government control, behind which gold is kept safely, which remains the government’s trust, hence more number of paper notes than that To exit means to put the economy in jeopardy, so a valuable thing like gold is kept for safety.
4) Fiduciary money / checks bank draft –
Documents like cheques, drafts also act as representative money, but the responsibility of that is taken by the bank instead of the government authority. in the banking system
There are many forms of fiduciary money / representative money.
5) Digital Money –
Due to the increase in the Internet sector and the loss of creation in making popular paper money, there was no option for this for a long time, but after the advent of computer and after the development of technology, digital money is still available all over the world in digital form. It is beginning to slowly transform.
6) Crypto Currency –
Recently, you must have heard about bitcoin, which gives a currency named bitcoin in exchange for any legal currency in the world, which is very secretive about who runs it. The rich people of the world keep their money by converting it, which is a very big financial organization which is not recognized by any government but no one opposes it.
This is the specialty of this currency, as the currency of every country remains in circulation with the recognition of that government. Documents of the banking world work as a trend, but no country or any recognized bank is the authority of this trend, yet this trend remains very much discussed. In a way, it is a digital money which is in digital form, in which a separate security is kept.
Importance of Money –
As the use of money made all the economies of the world very easy to do business and this modern form of money lasted for about two hundred years, which gave good convenience for business to grow, which would have been very difficult to collect the goods in the medium of money. was. Let us see the importance of money in further detail.
1) At the time of barter, it was very difficult to store or move with it, which has become very easy with the advent of the prevalent paper currency.
2) At the time of bartering, it became increasingly difficult to determine the value of one commodity in exchange for another, which became accessible with the advent of the prevailing trend.
3) The system of barter in repayment of one’s debt became very complicated and it became difficult to settle the loan which became easy after the introduction of paper money.
4) Paperwork proved to be very effective for annual budgeting for analysis such as GDP, making it much easier to evaluate.
5) It became very easy for the government to generate revenue in the form of taxes.
In this way we saw how money developed and how digital money is developing in today’s era. We have seen what is money and wealth, wealth gives us money day and night. We have to work day and night to earn money. We understood about how wealth is created. I think I cannot explain much about money by writing just in one article on this subject, so I will definitely try to write another part of it in the coming time.
To Grow in financially we have to understand the difference between money and wealth and also understand the money and wealth creation sources. Business culture families have their family secret formula of business development and wealth creation.