Your value system plays a sensitive role in determining the value you get out of money.
Money works with a value system and your value system decides the value you get for what you pay for. You spend money on what you value, regardless of your degree of value on that thing. While we talk about prices inflating and deflating, we tend to forget that value is not always stable. A product of $50 can be $55 tomorrow. The price has increased but the value is still the same. Tomorrow, you can decide to go for another product of $100, not because of the price but because of the value. Why? It’s a popular norm that the higher the price, the higher the value.
Money responds to a value system
Value proposition happens when you haven’t gotten around that product/service, either because it’s pretty expensive or cheap or it’s not necessary at that point in time. The same way a person will prefer travelling by train to a car is the same way a person will prefer flying an economy class to a business class. What is the difference? Value. The beautiful thing about value is that it is as dynamic as life itself – regardless of the price. Because of how adventurous humans can be, their value for things will change, positively or negatively, depending on their value system.
Always ensure that you get value for what you pay for, whether products or services. That is the essence of money – getting value for what you pay for. There are times when you’re not really concerned about the value of what you’re paying for. Situations like life-death experiences are some of them. If a sick friend or relative is at the point of death and he is in urgent need of water, will you be bothered about the temperature of the water?
Getting value for what you pay for is an essential factor that everyone should consider as a habit and a lifestyle. It opens your eyes to the value of what you’re paying for and the various options you can choose from, based on your value system. It also serves as a guide when taking any financial decision. Also, remember that your value system plays a huge role in determining what you get. To achieve this, ensure that you’re paying the price for something that represents sound valuation.
If I order a black 2018 Toyota Camry and a red 2018 Toyota Camry is delivered to me, I will reject it. I will do the same thing if I order a black 2018 Toyota Camry and a black 2917 Toyota Camry is delivered to me. Yes, I will. But it is just a colour? Yes. That’s the more reason why I will reject it. This is because the colour of the car is the value to me. Maybe I have never owned a black car before and I need it for a change. Maybe it’s my wife’s favourite car and colour and I want to give it to her as a gift on her birthday.
In order to enjoy the best that money has to offer. We should develop and improve our value. Wealth is all about value. What we place value on is our wealthy place.
Some people place value on luxuries like jewelries, smartphones, clothes and shoes and vacations. When they are asked how wealthy they are, they remind you of the various jewelries, smartphones, clothes and shoes that they possess. That is their definition of wealth.
Some people are very intelligent. They are not so buoyant financially but their intellects can produce oceans of wealth. They have identified their channels of wealth and they place so much value and focus on that. They work on their skills and intellectual faculty to produce that idea into something tangible. If you ask them how wealthy they are, they remind you of the various ideas they have reproduced into something tangible. That is their definition of wealth.
Some people are knowledge-hungry. Their quest for knowledge is unimaginable. They can spend their last $20 on an online course, a book or a conference. Their pursuit of knowledge is contagious. They understand that the secret to wealth is knowledge and the extent of a man’s wealth is the extent of his knowledge. Hence, the quest for knowledge as a mechanism for wealth creation. If they are asked how wealthy they are, they’ll remind you of the various books, online courses, degrees and conferences they’ve attended. That is their definition of wealth.
Some people are adventurous. They love activities. They enjoy working and trying new things. Because of who they are, they can spend so much money on anything that will make them try something new or something that will always make them active. They are willing to try new jobs, accept new roles, relocate to a different city and country, and embark on new journeys and meet new people. They believe that these things help in refining one’s thought and until your thought is refined, you won’t get the best of money. They believe that your environment plays a huge factor in wealth creation. They believe in risk as a factor that unlocks self-discovery and wealth creation. Ask them how wealthy they are and they’ll tell you about the various things they have tried, the mistakes and accomplishments these things have turned out to be for them. That is their definition of wealth.
Some people are so passionate about education. They want the best of education for themselves and their children. They can go naked and broke for their children. Most times, they want the best and other times, they want the best their money can offer – because it is part of their value system. It takes a lot of sacrifices for them to do this and they don’t mind – they’re willing to sweat in pain and tears and deprive themselves of the best things of life – just for their children. They believe that all they have ever worked for belongs to their children and they must give them the best, out of their hard work and sacrifice. They believe that if their children are established, the burden and dependence will reduce on them as parents and they will enjoy retirement. They believe that if their children become too dependent on them, they have failed as parents and they will do anything to change that narrative. They go as far as motivating their children to get the best of any form of education their money can buy. They inspire them to always stand out in all that they do, regardless of how tough it might be. When you ask them how intelligent they are, they remind you of their children, their various schools, their disciplines and how proud they are of their children. That is their definition of wealth.
A wrong value system makes you think that there is nothing in money. A wrong value system makes money look cheap and overrated. With a solid value system, you’ll get to realize that there is more to money than just paper and coins. It all depends on our value system and what we tag “value” and “more valuable”. People that don’t understand your value system will always find a problem with your financial decisions. People that understand your value system will always support and encourage your financial decisions. Most times, they advise you on your financial decisions because they want you to get the best that your value system has to offer. People that don’t understand your value system and are eager to know will ask questions, learn from you and refurbish their value system.
Wealth is all about value. What we place value on is our wealthy place.
Wealth means a lot to a lot of people and it is all determined by our value system and what we have chosen to become our value system. Getting the best of wealth solely depends on your value system and how much value you have decided to get.
Apparently, Warren Buffet was not wrong when he said “Price is what you pay for. Value is what you get”.