What Is the Point of Money?

Many spend their lives acquiring money, but what really is money? 

For many scholars, money is the ability to do something – whether that is to eat a sandwich, own a nice necklace, have someone provide a service for you – turned into a quantified unit. By this definition, money has incredible value. It literally is the ability to do or have things, but there are still some limitations to that value. 

First, the capacity to do what? At the end of the day, money is a tool, a way to meet other goals. Capacity makes a very poor goal or purpose in itself. People who pursue money for money’s sake are attaining the ability to do things without a sense of what they want to do in life in the first place. 

Second, as quantified capacity, money becomes less valuable the more you attain it. Everyone has the capacity to do things with their time and energy. Your salary has a certain amount of capacity as well. When you work, you trade the ability to do whatever it is you could do with your time and energy during that time for the capacity latent in your salary. 

Often, this trade may give us even greater capacity, allowing us to do things we otherwise could not do with the time we have. You can use that capacity to meet your needs and pay for the things that you want, and thus help you live a better life. Such a trade may be worth it for you. 

But after you have so much stored, gaining more may no longer add much value to your life and in some cases, may decrease it. Billionaires, for example, have enough to meet an entire life’s worth of needs and wants (and often the needs and wants of dozens or hundreds of more lives after that). 

In such a situation, they do not have enough time left in their life to enjoy the capacity that they would gain from making more money through work. Each day they work, they lose one more day they have spent doing anything else (spending time with family, relaxing on a beach, or whatever makes one happy). Some ultra wealthy still work because they feel their job gives them a sense of meaning in their lives, but from a certain perspective, they are sacrificing their capacity to keep working. 

Billionaires are an extreme example, but this applies to a certain degree to everyone. There is a time to build a base of capacity for ourselves by earning money, but the more one builds up, the less useful any new money we gain becomes. Eventually, that can switch and trying to attain more money after that is actually counterproductive. 

You should evaluate for yourself how much of this thing called money you truly need and when the money you would gain is no longer worth what you would have to do to get it.