Money 101: What is Money?

Before you can understand "Wealth", you have to understand "Money."

Merriam Webster defines Money as:

"When it comes to money, ignorance is NOT bliss. What you don't know CAN hurt you.”

~ Sandra S. Simmons

"Something generally accepted as a medium of exchange, a measure of value, or a means of payment."

As a society, we all have come to accept money as something we work to earn, in order to turn around and use to pay obligations, such as bills, as well as for recreation and enjoyment.

A majority of Americans are familiar with the regular work/pay paradigm. They are use to the concept of exchanging labor for dollars.

What you aren't taught is that money is actually an aspect of time. In essence, you are exchanging TIME for dollars.

If an item costs $100 and you make $10 an hour, it actually costs you 10 hours of your life.

Once you learn how to properly reframe income generation, your entire approach shifts. Instead of focusing on how you can trade more of your time for money, the focus now becomes, how do you leverage the money you've already made to make more money?

This is where the concept of "Compound Interest" comes into play.