Colour of the Money!
Money is any object or record that is generally accepted as payment for goods and services and repayment of debts in a given socio-economic context. It is one of the main medium of exchange. Money, in any form is an asset. Everybody is struggling hard to earn and save some money. Money has grown in its stature over a period of time. With factors like inflation and price hikes, it is all more important than any other time in the past.
History
Money as the exchange unit evolved from its predecessor barter system. Earlier goods, gifts or commodities of equal value were exchanged between different parties without any involvement of money. Soon the paradigm shifted towards use of some form of exchange medium. Thus, money was introduced as the medium of exchange.
At the start precious metals like gold and silver were used to exchange commodities in return. These metals were the first form of money. As the economies and civilization developed, coinage system replaced precious metals as money. Coins were minted by a government body driving the inflow and outflow of the economy. Soon paper money was also added to coins, so as to exchange large sums of money. Consistent economic development required Banks to be set up and thus was introduced the Bank notes such as draft and Cheque. Now is the era of plastic money, where credit is the key. One doesn’t need to carry any cash; plastic cards such as debit and credit cards are swiped for any exchange.
Currency
As geographies and countries were carved out, the competition began, to stay ahead from rest of the world. With industrialization reaching some parts of the world earlier, they developed at a fast pace. And thus were considered wealthier. Soon the notion of developed, developing and under-developed countries was framed. As each country differed in their development pace, so was their money power.
Every country developed their own money as per their requirement – colour, material and value. Soon different country money was being compared for their relative value. And the system of currency was introduced. Say a US dollar is worth 50 Indian Rupees. Foreign exchange market evolved around currency conversion. Today, relative currency value is one of the important factors to compare economic development of different countries.
Plastic and Electronic Money
Money has evolved in its form over a period of time. Today if you don’t have cash at hand, then also you can buy any commodity. This has been made possible by the so-called plastic money. Debit cards, credit cards, cash cards, reward cards; etc can be used as medium of exchange today. Money is directly debited from your bank account or you are given a certain amount as debt on card swipe.
Usage of money has changed. Now people carry more cards and less cash. It is easy and comfortable. Starting from barter system, money has reached the plastic form today. Electronic money is yet another form. Money can be directly transferred from your account to any other bank account via electronic transfer. With advent of Internet, it has become all so easy.
Assets
Assets in any form – investments, house, jewels or precious stones – are yet another form of static money. Asset is anything that can earn you money on exchange. Slowly people are shifting from saving money to investment paradigm. Only saving is not enough now-a-days, one needs to have assets. With inflation growing, purchasing power of money is decreasing, so one needs to build up assets that too increase in their value over a period of time.
Brain-drain
As money plays an important role in one’s life and economic development, people strive to save and invest more. And with globalization, it is possible for a person to work anywhere in world. With currency perception around, people are willing to earn a stronger currency. Say, if a person earns 1US dollar, it is equivalent to earning 50INR. Also, salaries and income is varied as per the economic status of a country – developed, developing and under-developed.
Brain-drain, people moving out to other countries in search of better earning opportunities. This is a phenomenon much prominent in developing and under-developed nations. People are moving out to developed countries in search of better lifestyle. The colour of money, i.e. currency, in this sense plays an important role. It is driving your status quo.
Money is the driving force
Money is power. It is driving economies, people and faiths. Also, competition to be ahead of your peers is driving people to earn more. In this light, colour of money you earn plays an important role. Your income may depend on your location – developed, developing and under-developed nations have different income status. With currency conversions, colour of money that you earn has become an important factor of one’s living.
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