If Cash is King, Trade is Queen – How to Trade For What You Want
Quitting Your 9-5
Trade Can Involve Skills, Products or Even Time
What is Cash?
Since the beginning of civilization there has been an abundance of unique ways that people have exchanged goods or services. Of course, this originally can be boiled down to the example of a wheat farmer and a cow rancher. We could go further back but let’s talk about that. You’re a farmer, growing wheat and it’s time for harvest. The problem is, you can only eat so much bread, crackers and tortillas before you’re ready for a glass of milk. But you have no cows. Your neighbor has cows and he’s grubbing on butter and cream and milk. You then think, I bet that rancher would give me a gallon of milk in exchange for a loaf of bread. Bingo! A local currency has now been establish. One loaf of bread now equals one gallon of milk. The problem with this is when another farmer moves in and starts selling a different product; say goats milk. Well, the wheat farmer decides he likes the goats milk better, the goat rancher wants cows milk, and the cow rancher still wants some bread, so neither of them can trade directly for what they desire. We are at somewhat of an impasse. This is an oversimplification of where fiat currency comes into play to provide for the means of exchange.
Fiat Currency and Trade
Cold hard cash has become a means of exchange because not all of us can trade directly with each other. We’ve instead created fiat currency, or a product with declared value, that allows all of us to value our goods or services to one generally acceptable item of trade. Of course, this is a solution to the problem above but it also causes other problems. Like the Dollar, the item has no intrinsic value beyond the paper it’s printed on and is only valued through the declaration of the issuing party; in this case the US government, and may lose value over time depending on the carefully managed supply and demand. Ok, so what are we getting at. How does this matter to my budget?
The Value of Time, Products, and Services
The point is, you don’t always need cash to get the product or service that you want. All of us have products, services or time to distribute and there are people out there who are willing to trade us for it. Your very job or career is the agreement that your time, work or knowledge is worthy of trade for a pre-determined number of dollars. The problem is, work typically ‘caps’ us on our earning potential based on the number of hours we work during the week. This is different if you produce a product and can increase your production or sales through different means, but let’s say we can’t and our only income is based on a standard work week. Money is tight but at the end of the week or workday, you still have some time to spare. Does the value you provide to your work end the moment you walk out the door? I hope not. Perhaps you can provide that same value to your community, friends or family in trade for other products and services.
Are not five sparrows sold for two pennies? And not one of them is forgotten before God. Why, even the hairs of your head are all numbered. Fear not; you are of more value than many sparrows.
Trading Can Also Help Develop Your Self Worth
Trading can not only make parts of your life easier, it will also improve your skills and abilities and increase your self worth.
You Are Valued
Budgeting isn’t just about putting numbers on a piece of paper and making sure it all ads up. Budgeting is a way of life where we can be frugal, understand our worth and use the resources we have available to us to balance our life because we know that we have value and we deserve to be better than just another line item in the largest banks balance sheet or credit card companies. We put money toward that which we value. If we want something, we can use our skills and knowledge to increase our income so we can save and/or trade for that which we seek. Look around and evaluate what you can provide and who needs your service. Do you do art? Hair? Web design? Cleaning? I bet there’s more you can trade with someone else than you think. Maybe someone else knows how to clean and service a pool and you know how to nurture a lawn and garden. You can save money by trading with friends and your community who already professionally do the work you desire. It also gives you a new perspective on what trade is and what trading your hours and services are really worth. When I worked for an hourly wage and I wanted to make a large purchase, I’d ask myself: “Is this purchase worth 40 hours of work?” Would I trade hours of my life for this? Put that into perspective when you’re making new purchases and you’ll think differently about the trades you’re making, the value of products, and your budget.
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