Understanding The Concept : “MONEY”

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We all think that “Money” is:

  • The key to ultimate happiness.
  • It is the only thing that is binding us to do things which we do not want to do.
  • It is the only hurdle that needs to be overcome to start doing what we love to do.

              And this is one hundred percent correct with just a missing word and that is Enough.Enough word gives some sense of clarity towards our definition of our financial freedom.Enough money differs from person to person but it is the amount which is quite achievable by that person with some efforts. 
             Another thing that is quite applicable to all of us that we always think about becoming financially free and live without money-issue but don’t think critically about how can we achieve that.We keep crying over our poor financial health and blaming our situations. We are the batsman whose team needs a six on the last ball but instead of focusing on shot selection , he thinks only about hitting six.The point is, we don’t clearly think about ways to earn money through available or achievable resources.

            What is Money? Earlier in ancient times, transactions were made through Barter system.In barter system, people exchanges goods and services for the other goods and services like in villages , fruit sellers still sells fruits in exchange of wheat.This explains that same value of goods and services were being exchanged at that time.


At present, we exchange all the goods and services with money.So, that’s why money has become main center of our life. It provides value to us by which we can fulfill our needs.It defines our standard of living.


Concept of Money Tree:             


              Imagine a tree which grows coconut shaped fruits and if you break the shell of it , you will find real money in them. Isn’t it fascinating to have that tree in our backyard? We will be financially free forever. No anxiety of budgeting, no stress over limiting our needful expenses, work if you want , do what you love.It is giving the feel of heaven.And yes…., the tree exists!!! 

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Let’s understand the Money Tree and characteristics of it.

  • Money Tree requires Time & Energy as inputs.
  • It gives fruits depending on the Soil.     
  • It gives fruits at various time interval.
  • Fruit size depends on growth of a Tree.
  • You can plant multiple trees, the only limit is your time and energy. 

         On those trees some birds are living and you can’t let go of them because you are in love with them.Some of the birds came from somewhere and got mixed up with your loved ones.They seem quite similar to your birds and needs a close look to see the difference.Necessity to discriminate between them is because birds feed on fruits from our trees.

Translating all of this into our Finance:
Trees are sources of our Income or  in other words, ASSETS.


Soil is the type of assets like,

  • Job
  • Business
  • Real Estate
  • Stocks,Bonds.
  • Fixed Deposits, Provident Fund, Post-office Recurring Deposits.
  • Precious Metals like Gold,Silver,etc.
  • Intellectual Property like Patent, etc.
  • Own content like Videos, Blogs,etc.

There are so many other untouched soils also, that we should grow trees on them.    



  Birds you love are food, clothes, accommodation, school fees of your kids, electricity bill, mobile recharge, groceries, social gatherings, Taxes, etc. Basically ,they are your NEEDS.                  

The other group of birds are things which we buy out of our impulsive decisions or the expenses which do not fit into our credit limit. Example would be buying a car on large premium EMIs or Buying a house with large chunk of loan amount or buying expensive clothing, cool gadgets or expensive shoes just to show off or under peer pressure or as a status symbol. Basically, they are your DESIRES.

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                  Another bigger problem with them is as soon as you feed them, they start laying eggs regularly and sometimes without prior notice and now you must feed new-born baby birds too. Example would be like this:Let’s say You bought a car on EMIs. This bird will be laying eggs every month as an EMI and also after some time it will lay eggs such as service cost, breakdown cost egg will be laid without prior notice and fuel cost egg is mandatory and can’t be postponed. Your money tree will be populated in no time and its rate might be greater than India’s population growth rate.The downfall of this bird feeding is that birds you love will suffer.These Birds represents our LIABILITIES.

 How to see the difference between those two birds:

There is no prohibition on buying cars or expensive gadgets or fulfilling your desires, but the only thing you need to understand is the trees need to be first grown and according to its fruit bearing capacity we should feed this desire bird.                  One of the practical way to take decision on whether to feed or not the ‘desire bird’,is that we should find our income per work-hour and compare with the price of our desire.

Example:Jay earns 30,000 Rupees per month and he start preparing for going to work at 7 o’clock in the morning ,works all day long and gets totally free from work (including travelling from work to home) at 7 o’clock in the evening.He works 25 days per month.

Total time invested for work per month = 25*12= 300 work hour per month. Total Income generated per month         = 30,000  Rupees per month        Income generated per work-hour  =(30,000 Rupees per month)/ (300 work hour per month)                                                               = 100 rupees per work hour                                                                                                                                 
100 rupees/work-hour is the reference point. He has a desire of wearing 3500/- rupees smartwatch because of whatever reasons.Now he has reference point, from which he can see that in exchange of that cool looking smartwatch , he has to work for 35 hours. And if he is OK with that then buy it !!!

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We have two weapons to fight the battle of financial freedom :

  1. Create Assets (Grow more Trees)
  2. Understand Liabilities ( Feed less to Desire Birds)

Let’s explore the soils, make it fertile and grow our trees on them in upcoming Blogs.

Thank you for your support.

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Om Patel

Om Patel

Om Patel of The Wealth Blog writes about Personal Wealth, Investing, and every other aspect of Finance that makes people financially independent.
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