on value
A few months ago, I had a conversation with my cousin about money. He has a pet interest in economics, and he made a statement to the effect of “People often forget that money is a mechanism for procurring things you value. The accumulation of currency is a way to minimize risk or create opportunities to procure things you value at a later time. There is no inherent value in money.”
This reminded me of a conversation I had with a classmate in college; she was a student returning to her degree in her late twenties, after some stumbles in the traditional time frame. She spoke about how her and her boyfriend held very different beliefs about how to manage their money. “I see no problem with running my checking account down to $25; he freaks out if it goes under $250.” I asked her if she also had savings. “Well, of course. That’s why I don’t mind running my checking account down so low - to me, leaving more than the minimum needed for the account not to default feels silly.”
Value and risk tolerance within the financial space is a highly personal thing. Each of us have had experiences which informs how we choose to spend; as an example - contrast someone who has been blessed with perfect health with someone who struggles with an autoimmune disease. We also have lifestyle preferences; I happen to enjoy a clutter free home and tend to weigh carefully what permanent objects I bring into it for purpose as well as aethestic. However, I will easily spend $20 a week on high quality, freshly roasted coffee because I love starting my day with the sensory pleasure that making pourover coffee from those beans gives me.
We often want to judge what people choose to invest in - both with their money and their time/attention. This feels like wasted energy to me; what do you achieve? I think the more interesting question is, “What does this investment tell me about what they value?”
Is there someone that you often find yourself frustrated with their choices for how they spend their time or money? Can you ask the questions to uncover the underlying value?
Be well, beautiful people.
