Understanding Money

My present financial issues have got me thinking quite a bit about money lately. And, as my modus operandi, I tend to delve into nuance. Money, as important as it is to all people around the globe, is a truly funny thing, if you think about it.

Money is composed of a mix of paper bills and coins. The paper bills aren't actually paper, per se, but a mix of cotton and linen (mostly). Coins are made from metals of various types, including nickel, zinc, steel, copper, etc.

Back in the olden days, the currency you held in your hand had true and real value. Coins were made of more precious metals, like gold and silver, and carried their worth with them, which allowed for full and immediate transfer of value. Paper currency used to represent real gold (or in some cases, silver) in vaults in the care of the federal government, each bill essentially being a certificate of ownership of that amount of gold (or silver) in said vaults. In 1971, however, the connection between the tangible commodities and the currency was permanently severed by Richard Nixon. Now, we are on what is called the fiat system, in which currency is intrinsically useless, however still serves as a medium of exchange.

In its true essence, currency, i.e. money, is useless. You can't eat it. You can't wear it (effectively, anyways). You can't use it for shelter. I suppose you could burn it to stay warm, but would need a great deal of it to do this effectively.

Money is simply a theoretical creation of humans. It only has value because society has collectively deemed it so. Money, in its bare utilitarian nature, is a means to an end. The sole benefit of money is that it can be used to obtain goods and services.

My wise Grandma used to tell us kids, "Money is the root of all evil." This common saying is actually a misquote from the Bible, from the book of Timothy (6:10):


For the love of money is the root of all evil: which while some coveted after, they have erred from the faith, and pierced themselves through with many sorrows.


It is not money that is the root of all evil, as this quote states, it is actually selfishness. Selfishness, such as monetary greed, is where all sin originates. [The Revelation from God (http://www.scribd.com/doc/18001638/Revelation-from-God) discusses selfishness and sin further.]

Being driven to accumulate significant amounts of money is not bad, in itself, provided it is not for selfish reasons. Some seek money to provide for loved ones. Some seek money to not stress about ones daily needs. Some seek money to share and help and provide for those who cannot do so for themselves or have needs they themselves cannot meet. Money, when used properly, is a good and beautiful thing.

As I have been going through a financial crunch since my roommate moved out, I have become much more acutely aware of the difference between "want" and "need." I have cut back and reduced my expenditures in many ways and realize I wasted a lot of money on frivolous things. God always has a reason, and I have learned that frugality is actually the way God would like us all to live. That is not to say not to have money, but just not to be so wasteful with what we do have. This lesson has truly been a blessing, as I am a better person now because of it.