a friend wants to give me a large sum of money. aside from taxes, what should i do?
Money is an essential attribute of life that we can't have for granted in the society we live in today. Money tin can enrich our lives and put us into a position to enrich others. If we utilize our coin smartly and intentionally, it has the power to bring about our hopes, dreams, desires and goals.
By exploring why we use coin, why we demand coin and the benefits of coin, we tin also recognize the disadvantages of earning and having money. Only when we learn what money is and how to treat information technology similar a tool tin nosotros understand why it's so of import.
Why Do We Use Coin?
The reasons we use money are a little more complicated than the fact that it allows united states to buy things. Money represents exchanges within the economy, and nearly every gild uses some form of currency as a means to pay for goods and services. Merriam-Webster defines money every bit "something by and large accepted as a medium of exchange, a measure of value, or a means of payment" in the class of coins, paper notes or different types of accounts. The Oxford English Lexicon explains it equally "Current coin; metal stamped in pieces of portable form as a medium of exchange and measure out of value." Put only, if y'all want to purchase something, then y'all'll accept to give some form of money in return.
At a national level, countries assign a central banking company control over the product and distribution of coin. For example, the United States went from the gold standard to the Federal Reserve Organisation with the passing of the Federal Reserve Act of 1913, explaining that information technology gives the country "a safer, more flexible, and more stable monetary and financial organisation."
Why Do We Need Money?
On a large scale, we need coin as a means to regulate and stimulate the economic system. On a more personal level, coin helps us achieve our goals. Many people accept a want to heighten children. Others are defended to a life of service, giving to those in need of various resources. All of us have some desire to maintain good health. And y'all might exist hard-pressed to find someone who doesn't want to travel the world to experience different countries and cultures. All of these activities and goals require a considerable amount of money. And regulating money, whether by a national government or central banking company, is the near attainable ways to determine what is valid currency and what is non.
Robert Kiyosaki of Rich Dad writes, "That's why money is important to me. Coin is of import, simply I don't desire to spend my life working for it." Essentially, it'south helpful to take a balanced outlook on and attitude about money to be successful with information technology. Kiyosaki says, "The truth is that money isn't everything, merely it does assist us do everything we love."
Benefits of Having Money
There are numerous benefits to having money. Not only does it help us do everything we love, but it also helps us assist others. Some very generous people contribute their accumulated wealth to others in need. Money tin can lift spirits, and information technology can realize dreams. Money is also the pathway to gamble and security in retirement.
Y'all might agree with those who say that money is the root of all evil and cannot make united states happy. But you might also have a dream to beginning a small business that you lot hope to go out to your children or expand into a larger venture to serve multiple communities. Money from investors, a large inheritance or even the lottery is oftentimes required for entrepreneurs to compete in a capitalistic society. This leads u.s.a. to the downsides of having money.
Downsides of Having Coin
Coin can crusade happiness, in large part because it makes people experience secure. But money can also cause plenty of stress and feet. Existence in debt is a significant concern amongst near people. In May 2019, a Gallup poll plant that 56% of Americans generally feel pretty proficient almost their financial situation. But, 45% of Americans believed their financial situation was between "only off-white" and "poor." A staggering 25% of people who are "worried almost money all of the fourth dimension" are primarily afraid of retirement and unforeseen medical expenses.
Another downside to money is the damage that it can crusade. Money is used to commutation arms that oppress millions of people around the world. It tin cause greed or a strong desire to accumulate resources simply to possess them, keeping those resources from beingness put to use to aid people. When people think about the negative consequences of coin, they often wonder how much of it is necessary to satisfy someone.
How Much Money Is Plenty?
Some people might say too much money is never enough, while others believe in limiting how much wealth individuals and businesses should accumulate. It's been a fence within governments and ruling bodies for years. The answer is complicated and probably lies somewhere in between. There'south but so much wealth a person can spend within their lifetime, and it may not exist necessary for them to continue accumulating wealth beyond that — keeping it from others in the procedure.
On the opposite, someone may want to accumulate plenty wealth for time to come generations to alive comfortably. Taking care of family and leaving a legacy is important to some people. It's a decision each individual has to make for themselves. How much do you and your family need to live a comfortable life through retirement? And how much do y'all demand to help others?
Why Is Coin Necessary?
Money is necessary to further the cause of commerce. A healthy global economy means more opportunities for developing nations and people in need. Money is essential, but too much wealth in one area or in one person's hands can lead to an unbalanced course organization.
Money is necessary to attain objectives we've laid out on our personal life paths, and global markets require coin to function. You can think of money equally a tool to apply to navigate these paths. Ultimately, because of the capitalistic economies of the countries we live in, money is necessary to improve our lives and the lives of those around us.
Source: https://www.askmoney.com/budgeting/money-important?utm_content=params%3Ao%3D1465803%26ad%3DdirN%26qo%3DserpIndex
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