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The Great Energy Swap

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All of our financial transactions can be reduced to an exchange of energy. We freely exchange our money for the energy of others when we feel they have something of value to offer us. When we use someone else’s energy to get work done, we pay them money. Consider the simple example of getting the lawn mowed. We can reduce our own physical efforts by changing the way we do the work - say using a gas or electric lawnmower to lighten the workload of cutting the lawn. We can also exchange the workload for money with the kid down the street, who will be delighted to trade his physical energy (which he likely has plenty of ) for the potential energy of cash to spend (which he likely wants more of ). This results in a trade of energy: each person trades what they have (the kid has physical energy and time, the adult has money) for what they need (the kid needs money, the adult needs physical energy and time). This is a simple example. However, all money transactions follow the same logic: all are an exchange of one form of energy for another. Thus we believe the very best definition of money, the one with the most meaning and possibility, is that money is a form of energy: the ability to get work done.

Inspired Wealth

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