"Money is an idea"....

That's a quote from one of Robert Kiyosaki's books, I believe. I remember reading that, and wondering what it meant. I didn't quite figure it out.

But just last night, I had dinner with a friend, and he brought along one of his friends, John, too. All three of us are interested in these topics and we each read different books, go along to different seminars, etc., so we got together to share what we've learned....

John said something which struck a chord with me. He said....

"If one person thinks that something is worth a particular amount, and if he convinces everyone else that it is worth that amount, then it IS worth that amount."

This seems to be the essence of the thought that "money is an idea." What something is "worth" is what people THINK it is worth.

What people think something is worth can, of course, go up and down. (We've seen that with tech stock prices in the stock market during the past year, for example....) And because these thoughts can change, that's why "money is an idea"....

What do you think of this? Is this how you understand this thought too? I'd be interested in your feedback....

If you have an alternative understanding, I'd love to hear that as well.... :)

- Dien Rice