Money is a tool to measure value.
It seems ridiculously simple but it is surprisingly a struggle for most people to define what exactly money is. Often, when asked this question, people tend to say “it’s used to pay for stuff”. The problem with that answer is that it often invites the next obvious question, “Why use money specifically?”
But a bit more about money as a tool.
As stated earlier, money is nothing more than a tool to measure the value of something. Here’s the context:
- We measure lengths with a ruler. We can know how long or short something is.
- We measure weight with a scale. We can know how heavy or light something is.
- We measure temperature with a thermometer. We can know how hot or cold something is.
- We measure volumes our recipes with teaspoons, tablespoons and cups. We can know how much or how little something is.
Just like the above, we can also measure value. We know an item is more valuable or less valuable by how much we are willing to pay for a particular item, or how much we are willing to sell it for.
DEFINING VALUE’S UNIT OF MEASUREMENT
In order to make the comparative between higher and lower, there is always a unit of measure in place:
- The unit of measure for length include millimetres, centimetres, metres, inches, foot etc.
- The unit of measure for weight in grams, kilograms, pounds etc
- The unit of measure for temperature is Celcius or Fahrenheit.
- Volumes are measured in millimetres, litres, or cubic millimetres or centimetres.
For value, the unit of measure is dollars and cents, though there are different variations to this (Ringgit in Malaysia, Pesos in Mexico and Philippines, Yen in Japan, Yuan in China etc.)
WHY IS VALUE SO HARD TO DETERMINE
Unlike lengths, weights, temperature and volume (which already have a set standard that is universal eg 1 cm, 1 g and 1 degrees Celcius is the same, no matter where you go), value is completely independent of standards.
The value of a piece of bread is different between the rich and the poor. To the rich, it is a mere snack. To the poor, it may be a day’s worth of meal. The saying “One man’s treasure is another man’s trash” befits the definition of value: its set of standards is dependent on the individual, and no one can be absolutely wrong in setting the price.
PUTTING THIS KNOWLEDGE TO YOUR ADVANTAGE
Knowing the nature of value and money can mean several things:
- Build empathy and understand how other people value things. Then be the provider of value to them. When you are perceived as a source of value, your own value increases. That’s how you get a high paying job, or be successful in business, or be loved by your people.
- One of the ways that you increase your value is to gain a valuable skill or education. Which is why it is so important to do your best when you are still young and studying. I know that the grades means nothing in the future. I am a living example of a good student with a horrible career. Grades are measures of your understanding of a subject. But it is not a measure of future success.
- Always try to get into a place in life where you can afford everything that is of value to you, no matter what the price is. That is why financial literacy and discipline is important.
- But not everything that you value is good for you. This only Allah can guide you. So seek Him for Guidance always.
