3 simple lessons that will make you wealthier and wiser with your money

We earn it, spend it, and hopefully save it, but what truly is money? Let’s shift our perspective. Consider your work effort as energy (because it is). When you get paid, you’re transforming that energy into financial power.

Just like other forms of energy, this financial power can be used to acquire goods or saved for later use. How we use (or spend) this financial energy can be either productive or wasteful. This concept, while not flawless, is powerful. Here are 3 ways to build on it and unlock the wealth each of us can generate.

1. Money as a Social Tool

Money is more than just bills and coins. It’s a social tool that simplifies exchange. Imagine bartering a cow for a house — money makes these transactions much smoother. Money isn’t just earned, it represents the value we hold in our possessions.

In essence, you are born with a different form of “preloaded money” — your potential. Your upbringing, education, and exposure all affect your ability to tap into this inherent wealth.

2. Invest in Learning: It’s Priceless

Author Ryan Holiday highlights education as a way to unlock the potential of your financial energy. He once worked for a successful author without pay because the knowledge gained was far more valuable than a short-term paycheck.

A few years later, when Ryan published his own books, he was an instant sucess.

The years he had spent working for free had paid off handsomely.

Don’t get caught up in the immediate gratification of earning a lot quickly, doing whatever comes your way. Instead, be intentional. Invest in skills that will increase your earning potential in the long run.

3. True Wealth Lies in Contentment

Here’s a powerful formula for happiness: Happiness = What you have / What you want. The key is to reduce your desires (the “want” side of the equation). Poverty isn’t just about having little, it’s about constantly craving more. Define what a fulfilling life means to you beforehand, or you’ll be perpetually chasing fleeting desires. Once your basic needs are met, true wealth is within reach.

Bonus: Automate Your Savings

Sticking to a budget can be challenging. David Bach, author of “The Automatic Millionaire,” suggests automating your savings and investments. Setting up automatic transfers removes excuses and keeps you living within your means.

By viewing money as a form of energy, you can build a healthier relationship with your finances. This new perspective will empower you to make smarter choices and use your financial energy to create a more fulfilling life.