October 10, 2016

Making change

The occasional need to make change is fascinating to me.

i.e., the need to exchange a particular denomination of currency (e.g., a ten dollar bill) for a different denomination (e.g., ten one dollar bills).

It is perhaps the most direct evidence that money on its own has no inherent value.

The value of money is in what we believe we can get with our money, NOT in the money itself.

e.g., a suitcase full of hundred dollar bills isn’t of much use on a desert island.

This is critical to keep in mind when you are setting a value price, especially one that you consider astronomically high.

The money that you’re asking for is worthless to the buyer if they can’t exchange it for something of value. And if what you offer is worth significantly more to the buyer than the money that you’re asking, then they’ll almost certainly exchange it with you without question.

Anything else would be against their self-interest.



P.S. Do you listen to podcasts? I’m going to be launching the “Ditch Hourly” podcast on Monday October 17th to help you learn how to break the cycle of trading time for money. Sign up here to be the first to know -> https://jonathanstark.com/podcast