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You Should Understand What Money Really Means

You Should Understand What Money Really Means

“When I was young I thought that money was the most important thing in life; now that I am old I know that it is.” Oscar Wilde.

Money is a strange concept: those who do not have it aim for it and those who do have it are full of apprehensions. But really, what is money? It is hard to define money, and agree on one single definition of it. We can make our lives easier if we understood what money really is:

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Money: It’s a need

To be honest, there is little left that you cannot buy with money. Money is essential for survival if not for comfort. The comfort and luxury come only when you have more money than you need for surviving. Who doesn’t want a new car; an air-conditioned well-furnished house; trendy clothes and all the new gadgets and gizmos in town?  Therefore, it is not the cause of everything wrong in our society, but it is a means of staying in society.

Money is all about control

It is easy to lose control whenever and wherever money is involved. Damaging factors such as greed, money lust, power can take control over the sanest of humans; especially, when the line between these factors and factors such as survival, expenses and comfort is thin. People want to match up, or to stay a step ahead of, the current lifestyle of their peers. This makes them lose their focus to fulfilling their hedonistic needs. What they don’t realize is that fulfilling hedonistic need is a trap of consumerism.

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Dreams come true: because of money

Those who dream to make a fuss of money, fame and power need to realize that you can make money only if you have money. You need to be smart about money to reach a certain benchmark, and when you have attained that benchmark you can make your dream into a reality. It is not necessary, though that you dream only of dollars and cents, your dream can be internally rewarding rather than being financially beneficial, such as that of being a writer, artist, blogger and so forth. What you can do is not starve and enjoy such endeavors if you plan them out smartly and have a supplementary income balancing your primary income.

Easy to be a slave to money

It is easy to be a slave to money, especially when it can open gates of luxury and comfort for you. Consumerism is a tricky spider, which can trap you in its web. As I said earlier, money is all about being in control and using that control to make your dreams come true.

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Budget: Track your expenses

You should be aware of how much you make and how much you are spending. You should also be making more than you can spend. Track down your expenses to see where you are spending the most and to cut that expense down, if necessary. The reason behind this is to make sure you have enough cash left over to invest in a nest and/or that you remain debt free.

Create a vision of yourself for yourself

Of course dreams are just dreams, you need them to be realistic enough so that they can be incorporated into a vision that you have built for yourself. The vision will help you set a timer on your activities, so that you can move on to the next step until you ultimately reach a desired state you have been aiming for from the beginning.

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Money or Self-worth: difficult choice to make

If you ask any wise man in your circle, and anyone who has had experience with making money they will claim it is a mutually exclusive decision regarding self-worth and money. You cannot have them both at the same time, but making money is empowering, and therefore, if you make little money, you can be happy because the source of it increases your self-worth.

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Tayyab Babar

Tayyab is a PR/Marketing consultant. He writes about work, productivity and tech tips at Lifehack.

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Last Updated on March 29, 2021

Life Insurance: A Secure Way To Protect Your Future.

Life Insurance: A Secure Way To Protect Your Future.

Life is a journey full of ups and downs. No one can actually predict what might happen the next moment; there are times where the happiest moments do not even take a second to turn into the gravest. Planning for your future can help you face such unwelcomed but irrepressible situations with much ease. We all want to make every memorable event of our life more special and to cherish all those moments happily and worry less, you must financially plan your future. But no one has control over life and death. Who would wish to see his family suffer in his absence? Insurance hands over the financial jeopardy of life’s happenings to an insurance company.

Importance of getting a life insurance

No one has control over life and death. Nobody would like to see their family suffering in an absence, and that’s why many people recommend life insurance. A life insurance plan is one of the best ways to secure the future of your family, even against those financial troubles after an untimely demise. These plans are safe and credible, and you could trust them for your family’s better future.

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On the other hand, a life insurance policy is a contract between a company (insurance provider) and policyholder in which the insurance provider ensures to pay a certain amount of money to the nominated beneficiary in case of the policyholder’s death during the term of the agreement. There are different types of insurance plans, and it is important for you to know the benefits of those plans such as a funeral, medical or some life expenses provided they are mentioned in the agreement.

Choosing the right insurance plan

If you’re about to select an insurance plan, you should consider some important factors:

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  • The time at which you start investing in a program and the number of family members you want to get insured. Obviously, a married man with two children has different needs compared to a single one. The number of persons who are dependent on an individual also varies from person to person.
  • The next thing you need to consider is you and your family needs. What are your child’s dream, your retirement plans, for how long would your dependents need financial support, any personal injury, etc. And do not forget those events or situations that will surely demand a huge sum of money.
  • The next thing one must consider is your current income. You should preferably choose a plan which you can afford.

Now you must be having a pretty clear idea of how to choose the best plan for you. Further, you should also compare various plans offered by different companies and numerous sites available online that help will you to compare them.

Differences between life insurance plans

Here’s a short brief of some plan categories you can choose according to your needs:

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  • Term Insurance Plan – You have to pay once, and your nominee gets the paid money under your misfortune demise. It ensures a person for a fixed time. If you survive the policy period, you do not get your premiums back.
  • Whole Life Policy – This plan continues for your lifetime. Under this, the policyholder has to pay regular premiums, until their death.
  • Endowment Policy –  In case the individual dies during the tenure, the beneficiary gets the amount assured. If the person survives the policy tenure, they gets back the premiums paid with other investment returns along with several other benefits.
  • Money Back Policy – In this a portion of the money invested is returned to the investor at regular intervals. If you survive the insurance term you get the entire amount back; else the beneficiary receives the entire sum assured.
  • ULIPs – These are the life insurance plans that offer you future security plus wealth creation options.

Many people do not opt for whole life policy and endowment policy because of the high amount of money you need to pay, while others may prefer to opt for these if they have a high life expectancy. Surely you will find the best one for you.

So what are you waiting for? Plan for your future and live a happier and carefree life today.

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Featured photo credit: aryehsampson.com via aryehsampson.com

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