Why your money is not really yours

In 2003, professional boxer and heavyweight champion Mike Tyson declared bankruptcy with 30 million dollars in debt despite amassing over 300 million dollars over the course of his career, posing a great question about money itself because a great deal of our actions or motivations in life have an underlying desire or need to acquire it, but what's the point of acquiring it if the big issue appears to be our ability to manage it?

Americans now have the highest credit card debt in history. Debt is an invisible burden carried by the country's most vulnerable citizens.

Of course, these statistics apply to the United Kingdom and the United States, but consider your situation for a moment.

Does money seem to enter your life and then leave? Has it ever put you in a vulnerable position, one that drew you closer to a get-rich-quick scheme or a guru telling you that you can get rich if you just bought their course? While my entire channel aims to tackle these topics to some degree or another, I recognize that our perceptions of money are sometimes more important than our ability to generate it, especially when our very brains are wiggling?

Does it really matter if you make more than six figures a year if you have nothing to show for it at the end of the year?

Where is the gap? It's time to solve that mystery, as well as investigate a better framework for understanding money, which is commonly taught in personal finance but often overlooked in formal education.

a question about education What is money, or rather, what does money represent when you buy something from Amazon or get paid for your time working a job? What role does money play in these transactions? Money is commonly defined as a medium of exchange, an instrument that facilitates the sale, purchase, or trade of goods between parties, but I don't think this says much about what money actually represents. I believe a better way of looking at money is as an expression of value that you hand over a certain amount of money in exchange for a certain amount of money.

You hand over a certain amount of money to purchase something because you perceive its value to be equivalent to the amount of money that you handed over. Of course, the price is often determined by the market as a whole rather than you as an individual, but focus on this one point money equals value why is that so important because often we give money a moral significance a quote that I'm sure you've heard money is the root of our evil we look at someone who appears to have a lot of money.

Understanding that money is simply value is the best way to understand that money is not necessarily evil nor does it make a person evil. Sure, there are things like scammers who convince you that what they have to sell is worth value, but that says more about their own morals than it does about money.

Money simply broadens and expands your options.

Money is an expression of value, and the decisions you make with it reflect your own moral dispositions.

So how does this change the reality of someone living paycheck to paycheck or someone who is consumed by credit card debt?

The mere mention of money results in value changes.

Nothing, it may change my perspective on money, but what part of that is actionable advice? To answer that question, I'll post another question.

What is your financial relationship like?

Money will enter and leave your life. This is a relationship that is often expressed by your income and expenses. Another practical way of expressing this that I particularly like is your production versus your consumption. For the most part, money will enter your life because you have produced some form of value, and for most of us, this value will come in the form of labor a job. Money will leave your life when you have consumed something, such as Netflix.

In many ways, we can look at an individual's net worth as a metric for determining their relationship between consumption and production now. Consider the statistics I mentioned at the beginning of this video. Which aspect of the consumption versus production relationship do you believe is at fault here? Consider yourself for a moment, think about all the money that has entered and left your life, how much of that do you still have in your possession today or invested in some sort of asset, and which part of this relationship do you feel is unbalanced or needs to be improved, the likelihood is both, but for most of us, the biggest issue lies in our consumption.

A study found that 78 percent of American workers were living paycheck to paycheck. It also found that one-tenth of workers earning $100,000 or more a year were living paycheck to paycheck. Now, you could argue that someone earning six figures a year would like to earn more, but when you are paid a figure that is well above the average wage and the cost of living and yet you still find a way to spend it all. As any wealthy celebrity who has declared bankruptcy can demonstrate, production means nothing if you have a consumption problem.