It is a hard but accepted truth that money is the most important thing in life. Money is the medium of exchange for goods and services and has the general consent of the general public in the country. Money is the accepted medium of exchange for all commodities in the country. It is right to say that money is not everything in a person’s life, but it is the most essential part and plays an important part in the lives of people. This article provides a general overview of why money is important in an individual’s life.
The Functions of Money
Money is the legal tender for the exchange of goods and services in the country. Money performs various functions, like all transactions taking place through money. In short and concise form, money has three functions. For more information, click here for good at money lending in Singapore.
- The first and foremost function of money is as a medium of exchange. It means that money is generally accepted as a medium of payment for goods and services.
- The second function of money is that it has a store of value, which means that the value of money never diminishes. For instance, if a person works today and earns, say Rs. 30000, then he can hold the money because it has the same value today, tomorrow, next month, next year, etc.
- The third function of money is that it has a unit of account. It means that money is the yardstick against which goods and services are measured and payment is made in respect of that measurement.
The Significance of Money
It is correctly stated that a person cannot imagine their life without money. Money holds an important and irreplaceable place in an individual’s life. Money provides financial security to the individual. Money provides various choices to a person with respect to the opportunities and makes use of the best skills that a person possesses, thereby leading to financial security. Money can provide better goods and services to a person and help in maintaining a standard of living. Money reduces stress and anxiety for a person. It is evidenced by various reports that there is a link between money, depression, and anxiety, which indicates that money reduces financial stress for an individual.
Money is the most important part of a person’s life. Money is related to happiness because it provides a person with freedom, independence, and various opportunities in life. Without money, a person cannot imagine their lives because it would lead to difficulty in purchasing commodities, etc.