Why is Money Important in Our Life?
Whether you are working or self-employed, you are striving to earn more money. Why is money important in life? Money helps us meet basic needs, explore different experiences and live a comfortable life. Money plays an important role in our lives in one way or the other.
However, an obsession with money can have detrimental effects on your life. 1st Timothy 6:10; “For the love of money is the root of all evil.” You must have heard the saying that money can’t buy happiness. Money is important but it can’t solve all your problems.
Why is Money Important in Life?
In this article, we are going to look at the reasons why money is important in life.
1. Money Helps You Explore Life Experiences
We all want to experience good life experiences. To do so, you need money. That is why money is important. For instance, if you want to go on a vacation, buy a home, or enjoy the best things in life, there is a cost to pay for them.
When you have money, you can do whatever you want within the confines of the law. As such, it allows you to try different things and drive more happiness into your life.
2. Money Helps You Invest and Make More Money
Money is necessary because it helps you make more money. When you have money, you are in a position to take risks like investments. It is because even if your investments fail, they are not your last resort.
When you invest, your investments generate returns. You can then reinvest these returns and make more money. You start having an active income and a passive income at the same time. Consequently, you don’t have to rely on your salary to live a comfortable life.
3. Money Gives You Freedom
Money is important in life in that it gives you financial freedom. One of the ways to achieve financial freedom is to have enough bank balance, investments, and savings that can help you live the kind of life you want.
For instance, when you don’t have enough money, you can avoid debts. You can't be free if you have a debt until you completely repay it in full. Money also helps you not to be very frugal about your spending.
4. Money Gives You Options
The other reason why money is important in our life is that it gives us options. When you don’t have money, you get stuck and your options are limited. Many times, you have to go only for the things you can afford.
When you have money, you choose what you want. You even have a choice over the career you want and where to live. You are not limited by budget. Without money, you spend most of the time working and even after, you still can’t get enough.
Also read: Important things money cannot buy.
5. Money Gives You Financial Security
Money gives you financial security and you don’t have to worry about meeting your needs and wants. Money gives you security such that you are not even worried about losing your job. You can continue paying your bills and living a comfortable life even if you lost your job.
Financial stress strains relationships and marriages and can lead to divorce. In contrast, when you have money, you are in a position to give your family a better life.
6. Money Lets You Give Back
The other reason why money is important in our life is that it allows us to help others. When you have money, you are not worried about giving back to society, friends, or even your business customers. You are able to contribute to charitable work and also help the poor.
Although there are tax incentives when you give, it is not your main cause to give. At this point, you have achieved financial freedom and you know even when you give, you still have other ways to generate more money.
7. Money Reduces Financial Stress
Many people are having financial stress because they don’t have enough money. People are struggling to meet basic needs or pay for their children’s education and many other needs. As a result, they keep working to get money to meet these needs.
When you have money, you don’t have to worry about how to meet various needs and wants. You can afford most of the good things in life. As a result, you live a peaceful life without financial stress.
Related: What is financial literacy and why it is important.
8. Money Helps You Make Quality Purchases
Money is important in our life that it helps us purchase quality products and services in the market. Whether it is clothing, furniture, or even cars. When you don’t have enough money, you settle for cheap products which in most cases are usually of lower quality. They don’t last long. In the long run, cheap purchases end up costing more since you have to replace them constantly.
Summary of Why Money is Important in Our Life
Money is associated with happiness and having it reduces financial stress. When you earn and spend your money well, it can lead to happiness. As a result, you can get the best things in life. Although money is important in life, its obsessiveness can have negative effects on your life. Make sure to look for money through legitimate ways to live a fulfilling life.