What Is Money?

TL;DR

• Consider money as tool that you are the master of, not the other way round

• Money is a store of your time and productivity

• Inflation is a silent thief of this that needs to be combatted

• Your mindset is everything

Get your free Track & Win Toolkit below

*Coming January 2025

Money = Time

Money is your time but in disguise. You spend your time at work and in return for your time and productivity, you get money.

Think about how salaries are expressed as £ per year or per hour. Your time is being valued in £ so spend both your time & money wisely.

The 3 Jobs of Money

Economists generally agree that money has 3 roles:

• "Store of value" - in the form of savings or investments for the long term

• "Medium of exchange" - so that you can exchange it for goods and services

• "Unit of account" - for example, your salary is denoted in £ as we are in the UK

Inflation

Inflation is the silent thief that we all need to be wary of. It is the rate of increase in price of goods and services.

This means that the money you earn today will buy you less next year unless you can keep up with or exceed the rate of inflation.

For example, £100 in today's value will be able to buy you £98 worth of goods next year if the inflation rate is 2%.

This is why people invest for the long term with the aim to outpace the inflation rate and keep hold of more of their money, which in essence is their time.

Mindset Shift

Consider a scarcity versus an abundance mindset, which one do you identify with?

• Scarcity - for example, you think there is never enough and end up hoarding

• Abundance - for example, you think there is plenty of opportunity out there to earn, grow and give back

The scarcity mindset is limiting and you end up giving yourself an impenetrable and self-restricting glass ceiling.

On the other hand, the abundance mindset is freedom. There are no limits, only the imagination and you can see opportunity in everything.