2018.04.28 What is money?

At its most basic level money is just a tool that is created to facilitate exchanges among highly socialized animals—a social tool that acts as an intermediary in transactions. So now we can arrive at our first understanding of money.

Modern civilization has developed a system of using items of particular value that represent the right to claim a certain amount of goods and services. It is, in essence, a way of recording a deferred promise.

Money, while important, should never be confused with true wealth. Remember, money is merely the medium of exchange. It is a tool like many other tools humans create, and it provides us with a means to an end. While the ticket gets you into the theater, what you want is not the ticket. The ticket simply gives you access to the show, which is the true end. Money is merely the means to that end.

At its most basic purpose, money is simply a medium of exchange, the tool that gains us access to goods and services.

Now, true wealth has different meanings to different people, but in most cases it involves the addition of companionship, good friends, good family, good health, access to food, access to water, security, et cetera.

Clinical poverty is the absence of these things. Clinical affluence is having them, but not necessarily having a certain amount of money.