Money is an economic tool used to measure transactions. Such transactions can involve tangible property (Land, Building, Equipment, Furniture & Fixtures and Inventory Products) or intangible property (Royalties, Intellectual and other legally documented agreements). Put very simply, money measures market forces (supply and demand). If supply is low, plenty money is demanded but if there is a high supply very little money is demanded. If one considers Returns on Investment (ROI), which is a mix of Interest Income, Dividend Income and Gain or Loss on Share and Property Value, as a tradable product such as tomatoes or gold, which is affected by supply and demand pricing, then one understands the value of money.With less then two (2%) percent of the world’s population controlling over ninty (90%) percent of the world’s wealth, the only balancing factor controlled by the majority of people is consumer confidence. Most of us know that having too little money, not able to pay for your basic needs, is bad but too few of us know that having to much money can be worst. Money is only as valuable as the ROI it can generate. For example, many modern living complexs with all the essentials and some luxury facilities, built at a cost of billions, sits as ghost towns with very few inquires while the developer has to pay investors large ROI.
Money is traditionally earned through its investment in productive activities that generate profits. The person who sells honest work or professional skills for a wage or salary invests their time and effort and after paying expenses, hopes to generate a reasonable ROI otherwise referred to as savings. Such savings are lumped together in mutual funds, insurance policies and other investment instruments to generate further ROI by investing money in Agriculture, Mining, Construction, Transportation, Telecommunications, Manufacturing, Trade, Finance and Service-based business. Noting; that investing in the finance sector refers to buying shares in a bank, insurance company or such others, not depositing money in any of their financial products.
Money can and has also been made by speculative activities. Gambling, gaming or betting on the likely change or movement of share or commodity prices based on intelligent analysis, the award of a large contract, the discovery of new revenue streams or the movement of executive management. The driving force in speculative business is knowledge and all products designed and sold by the finance sector is speculative. Insurance policies bet on how many vehicular or other type of accidents a group of you will have, how much healthcare a group of you will need and how long a group of you will live. Calculated risk guides financial spreads and ROI rates.
Money has and for the foreseeable future, will move from an uninformed entity to a person or organization willing to take risk. No amount of regulations can fully protect against an unwillingness to undergo the necessary education and due diligence. If you have money you must understand money or this maybe too much money for you.
Rationale
T.A.J & Associates Company Limited uses this occasion to comment on topics that have been covered, both academically and by the mainstream media, to add its opinion and point out investment opportunity, not to invoke any social action.
