This morning, I came across the latest Freakonomics Radio episode titled What Is Money? which piqued my interest. Upon listening, I learned that Pulitzer Prize-winning composer David Lang has turned Adam Smith’s The Wealth of Nations into an oratorio. Fun!
What is money? It’s a question that I’ve thought about throughout my career and life. An outcome? A medium of exchange? The goal? An enabler? A store of value? The root of trouble? The answer? A collective illusion?
For my money (ha!), I would submit that money is captured time and energy. It is an account of past hustle, used to unlock the next experience, and can be shared as needed. I’m not going to wade into the religious debates about different forms. As long as it is an accurate representation of what has been done, and it allows for what will be, the method is up to the market.
So, how does all of this tie into the Greatest Wealth Transfer in Human History? Anchored in the definition above, “captured time and energy” becomes pretty evident. Mom and Dad have $84T+ of wealth with $18T+ in housing alone. That’s quite the sum and why I often quip that Mom and Dad have Won at the Game of Life. Mazel!
Also implied in my simple definition is that if time and energy is captured, it can be released. We can celebrate Mom and Dad as they ride off into the sunset, knowing they have provided well for their family. We can also use money to help the Next Generation buy their first home, be debt free, or start a business.
Despite being obviously helpful, I would submit that money is not the goal. It is necessary but not sufficient to thrive. It is an enabler of the next action. It gives the time and space to do something new. It provides a platform or support, but not an outcome.
We are all trying to do right by our families. We are raising our Parents and our Children these days. Life is hard. But, with proper planning, paperwork, and process, we can protect our families, preserve our legacies, and help use our stored energy to move our families forward…