Money like water

December 19, 2006 by gbrown

The subject of money I find most interesting, because of the role that money plays in our lives. There are many fallacies and myths about money because one cannot separate money from the locus of control, power, politics or self interest.

Certain realizations have helped me better understand what money is, and therefore attract more of it.

The first realization about money is that money is the byproduct of value. The bamboo chair weaver in Bangladesh or the business owner in Europe both share the need to first create value before you can attract money.
The second realization about money is that if you are going to make a lot of money in your life you need to appreciate what it really is – and that is that money is not more than energy. In fact, the root of the word affluence comes from the verb “Aflluer” in French which means “to flow”. Without value, money is unsustainable, because it naturally flows out of your hands and all you there are no really effective ways of storing water without it spoiling.

Deepak Chopra probably best describes money as “blood” – an energy force that is compelled to flow or suffer from coagulation and spoiling. Ask any property investor about the value in keeping the money moving and the danger of “dead money” (i.e. large deposits).

I thought a lot about taxation in my younger years when I was very much into the study of government and economics. The same pound note, dollar bill or Euro could circulate a hundred times in a year and each time create a tax implication for the bearer (for example if it was wages, received income, sales etc). So vibrant financial systems whether on the macro (government) or micro (individuals) remain “vital” through the constant movement of money around the system. Government would earn more through taxation if the money held in a deposit account purchased a house which funded the wages of the real estate agent who then purchased a car with the commission.

Similarly, financial freedom cannot stem from owning the water. One cannot gain freedom from storing the water, for it will spoil or leak. Freedom comes from knowing how to source, not save it.