Money is any item or verifiable record that
is generally accepted as payment for goods and services and repayment of debts in a particular country or
socio-economic context, or is
easily converted to such a form. The main functions of money are distinguished
as: a medium of exchange; a unit of account; a store of value; and, sometimes, a standard of deferred payment.
Any item or verifiable record that fulfills these functions can be considered
as money.
Money is historically an emergent market phenomenon establishing
a commodity money, but nearly all contemporary money systems are
based on fiat money. Fiat
money, like any check or note of debt, is without use value as a
physical commodity. It derives its value by being declared by a government to
be legal tender; that is, it must be accepted as a form of
payment within the boundaries of the country, for "all debts, public and
private". Such laws in
practice cause fiat money to acquire the value of any of the goods and services
that it may be traded for within the nation that issues it.
The money supply of
a country consists of currency (banknotes
and coins) and, depending on the particular definition used, one or more types
of bank money (the
balances held in checking accounts, savings accounts, and other types of bank accounts). Bank money, which consists only of records
(mostly computerized in modern banking), forms by far the largest part of broad money in
developed countries.
Happiness
is a mental or emotional state of well-being defined by positive or pleasant
emotions ranging from contentment to intense joy. A variety of biological,
psychological, religious and philosophical approaches have striven to define
happiness and identify its sources. Various research groups, including positive
psychology, are employing the scientific method to research questions about
what "happiness" is, and how it might be attained.
The United Nations declared 20 March the International Day of Happiness
to recognise the relevance of happiness and well-being as universal goals.
So,
based on the scientific, sociological and psychological research, regarding the relationship between money and
happiness doesn’t seem far off.
Every step
along the path to financial freedom leads to a little step up in your happiness
as the financial stresses that can impede your life become less significant for
you.
However, how
you think about money and wealth is absolutely integral in improved wealth
leading to improved happiness. Wealth is NOT how you are doing compared to your
neighbours, it’s not indicated by your income and it’s certainly not
demonstrated by how nice your car or your house.
Wealth instead
is having a strong net worth that allows you more freedom from the financial
stresses in life and allows you to spend time and focus on the things in life
which actually make you happy. That’s pretty obvious in my opinion!
Quotes : “While money can't buy happiness, it
certainly lets you choose your own form of misery.” (Groucho Marx).
