Money is a medium of exchange, that allows one person to get goods or services in return of certain modes of payment. Money is not just a piece of paper with a face in the middle, nor is money a circular piece of metal with a number. That is actually currency. Barter system was itself a form of money, a favour in return of another is a form of money. Money is not just notes and coins, there is much more to money than that. Money can be categorized in three major categories – Commodity money, Fiat money and Fiduciary money. Commodity money is a type of money whose value comes from the commodity it is made of. For example – Gold Coin Fiat money is a type of currency issued by the government. For example – Indian Rupee Fiduciary money is a type of money that is based upon the trust between the payer and payee. For example – Cheques

1. Vedant Sehgal
701900009
BT-1
HOW IMPORTANT
IS MONEY

2. WELCOMETOTHEWORLD OF MONEY
• Money is a medium of exchange, that allows one person to get goods or
services in return of certain modes of payment.
• Money is not just a piece of paper with a face in the middle, nor is money a
circular piece of metal with a number.That is actually currency.
• Barter system was itself a form of money, a favour in return of another is a
form of money.
• Money is not just notes and coins, there is much more to money than that.

3. DIFFERENTTYPES OF MONEY
• Money can be categorized in three major categories – Commodity money, Fiat
money and Fiduciary money.
• Commodity money is a type of money whose value comes from the commodity it
is made of. For example – Gold Coin
• Fiat money is a type of currency issued by the government. For example – Indian
Rupee
• Fiduciary money is a type of money that is based upon the trust between the payer
and payee. For example – Cheques

4. HOWWELL DOWE KNOW MONEY
• There is a common saying “Half Knowledge is
Dangerous”. Unfortunately, nobody understands
money completely.
• Morgan Housel in his book “The Psychology of
Money” wrote that real decisions regarding
money are not made on a spreadsheet.They are
actually made on a dinner table.
• Money is not just about businesses, finances,
mathematical calculations, data or formulae, it is
about how you behave, your unique view of the
world, your pride, ego, decision making capacity,
everything influences money.

5. WHATWETHINK ABOUT MONEY
• What we think about money is highly influenced by the type of family we are born
in, the time at which we are born, the environment we are brought up in and a lot
more.
• The mindset matters a lot.
• A rich person is rich because he focuses on the rewards. A poor person stays poor
because he is afraid of the risks.
• In the book “Rich Dad, Poor Dad”, Robert Kiyosaki said that a poor person says ‘I
cannot afford it’, while a rich person thinks ‘How can I afford it?’

6. WHAT CAN MONEY BUY
• Money can buy you EVERYTHING
• Money can buy you every tangible object in this world
• If you ask a child what he will do with lots of money, he will say he will buy a
car, a house or any other materialistic thing.
• Ask a man this question, he will say he will buy power and fame.
• Money can buy you safety and security for you and your family.

7. WHAT CAN MONEY BUY
• Coming to the non-tangible things in our life, if we give it a deep thought,
we realize that our emotions like happiness, sadness, satisfaction, anger,
guilt, everything is highly influenced by money.
• And apart from that, in order to feel every emotion we need to be alive, and
money gives us the access to all the basic amenities of life like food, shelter
and clothes.

8. WHAT MONEY CANNOT BUY
• There are a lot of things money cannot buy directly, but indirectly money affects
everything in our lives.
• “Money cannot buy you happiness” –This is the most useless thought ever.Think
about it – Money may not buy you happiness, buy poverty can buy you nothing
• Relating your emotional and physical needs with money is a false concept.These
things come from a person’s own sense of life and their own perspective of the
world. If we sit to relate everything with money just to see what it can and cannot
buy, we will just be wasting our time to create a list that never ends. Happiness
should not be related to money. It is an inner feeling. Money is just an icing on the
cake.

9. WHY IS MONEY SO POWERFUL
• Money gives you the power to buy things.
• Money gives you the power to buy assets.
• Money gives you the power to buy more power.
• Money gives a lot of people a sense of self worth and that significantly
influences their emotional well being.
• Money gives you a sense of safety and security.

10. HOWTO USE MONEY
• One of the reason why rich get rich is that they invest the money in order to make
more money. Certainly it carries risks but also rewards.
• Of course money is something that comes and goes. But our focus should be on
making sure that more money comes and less of it goes.
• Investing money in stocks, real estate, mutual funds or start-ups is risky, but the
results are worth the risk.
• We should deepen our understanding of finance to make sure that we know how to
minimise the risks and handle them, and be profitable in the end.
• Saving money is always a beneficial approach.

11. ADDRESSINGTHE QUESTION
• So coming to our question “How important is money?”
• Our understanding of money is different than others, and that’s what makes
money a beautiful concept – everyone has a unique view. How important money is
to me may be different from how important it is to you.
• But money is certainly the MOST important aspect of human lives. Money is a
necessity and there is no living without it.
• Passion or profession, whatever it may be, we all need money to make it true, and
further use it to make more money.