Money is a matter of functions of four, which is as follows;
– a medium,
– a measure,
– a standard,
– and a store.
It functions as a medium of exchange, a unit of account, a standard of deferred payment and a store of value. When money is used in the exchange of goods and services, it is performing a function as a medium of exchange. A unit of account is a set standard of measurement for the market value of goods, services and other transactions. To act as a store of value, a commodity, money or financial capital needs to be reliably saved, stored and retrieved and still be useful when it is retrieved. Finally, money as a “standard of deffered payment” is an accepted way to settle a debt.
But before we can multiply money we need to earn it and manage it as well. Money is earned when somebody provides a solution to a problem that exists in the family, community or society that individual finds himself. People can earn money by owning a job that is created by government, private corporation or individual. People also sell what they create, cultivate or build and exchange it with money.
The management of money is the most difficult aspect of life. The needs of humans are great and insatiable. This has resulted in economic crises witnessed as depressions or recessions. A lot of people live in abject poverty, where a huge number of people lack money or the means to earn it.
To manage money, that individual should determine their assets/income or know their means of earning money. They should also know their liabilities/expenses or learn the means they loose money through taxes, rent, health bills and other bills. They then subtract the total amount of their assets from the total amount of their liabilities which would result to their net income.
The money that you save from the income and expenses you make, which is the net income can be put away in banks or be multiplied through the following means;
– real estate,
– shares or stocks,
– mutual funds,
– fixed deposits,
– insurance/pension funds,
– the internet,
– daily contributions,
– network marketing.
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