We have all heard the sayings, “money can’t buy happiness,” “money is the root of evil,” “no money, no honey,” and there are more where those came from. The fact of the matter is our economy churns from money. Goods and services, taxes, and the like, make the world go around. If we used fruit to purchase goods and services and pay taxes, then we could insert fruit in the place of money in the quotes listed above. We just happen to use currency. Before currency existed people used goats, mules, bread, beans, chicken and other items for trading. Thereafter came gold and silver which lead to money.
It’s never really about the money, it’s about the purchasing power of the money. The economic value of money decreases through the increase in value of the things we purchase it with. Homes, cars, clothing, jewelry, land, and furniture are tangible items which provide immediate gratification. We pay for services for tasks we can’t or prefer not to complete like, legal assistance and house or car cleaning. The fact of the matter is, we are contributors and recipients of our economy through money.
Considering both scenarios it would be wise to understand how to benefit from each.
As a consumer it is important to understand how to maximize your purchasing power. Avoid paying retail prices for goods and services. Learn how to negotiate and or barter. Bartering is the exchange of goods and services for other goods and services. If you are good at a skill that is in high demand, offer that service in exchange for something that you need. This is an antiquated way of doing business, but here are some examples of where it could work:
- Babysitting services in exchange for tutoring.
- Cooking services in exchange for cleaning services.
- Marketing services in exchange for tax services.
- Car repairs in exchange for home repairs.
- Plumbing services in exchange for electrical services.
As it relates to being a recipient of our economy, you have to know how money works. You must receive enough interest on savings to outpace taxes and inflation. If you purchase through credit you must be aware of the cost of that item including interest. The price tag is always higher for being impatient and not having a budget. Plan for what you want, when you want it, and how much you want to pay for it. Are you winning or losing in the money game? Contact us today at firstname.lastname@example.org and allow us to help you develop a winning game plan.
About the Author: LaShonda Johnson is a licensed certified financial educator. She is also a founder of Hou$ton Hou$ewives of Finance where, “Our clients mean the world to us! To be able to change a life financially is a very rewarding mission. Each principle here at HHF started like everyone else, letting our finances manage our lives. We all knew how to work hard for money and how to spend money. As we embraced the powerful impact of learning how to manage our finances, we each realized that we wanted to teach others how to accomplish what we have – a solid financial foundation!” Please visit our website at: Hou$ton Hou$ewives of Finance.