"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

The larger message being expressed, in my opinion, is the POWER of THOUGHT.

Years ago someone told me that "poverty is a state of mind!"

Now, since I knew bunches of poor folk, indeed, I was even thinking of MYSELF as one, I got kinda mad.

Later, I made to someone totally different a cutesy remark that "if I pay $300 for a suit, I'm leaving the tags on it!" This guy looked at me and quietly asked "Can't you afford a $300 suit?"

What blew me away was that I COULD! I had NEVER GIVEN UP THE POVERTY STATE OF MIND from which I'd risen.

> The larger message being expressed, in my
> opinion, is the POWER of THOUGHT.

Wow, thanks! I think you're probably right, that probably is the ESSENTIAL message....

Your state of mind sure makes a lot of difference. We tend to build fences in our mind, beyond which we believe we can't go. Although these fences only exist in our mind, because they stop us from trying to do certain things, they are just as powerful as REAL fences are.

> Years ago someone told me that "poverty
> is a state of mind!"

> Now, since I knew bunches of poor folk,
> indeed, I was even thinking of MYSELF as
> one, I got kinda mad.

> Later, I made to someone totally different a
> cutesy remark that "if I pay $300 for a
> suit, I'm leaving the tags on it!" This
> guy looked at me and quietly asked
> "Can't you afford a $300 suit?"

> What blew me away was that I COULD! I had
> NEVER GIVEN UP THE POVERTY STATE OF MIND
> from which I'd risen.

Wow, thanks, that was a very good (and illuminating) story....

I'll tell a quick one about me. I tend to live relatively inexpensivly, since I prefer to invest my extra money (mostly into stocks).... Though I do allow myself the occasional "luxury" as most of us probably do....

Anyhow, until recently, I had never worn anything more than a $10 watch. Now, I wear about a $50 watch. (With a $10 watch, it's hardly worth replacing the battery when it dies because you might as well just get another watch.)

BUT, recently, I've been looking at high selling, yet low weight items on ebay (since I might want to sell them).... This brought me to a variety of high priced watches. Rolex Oyster Date, Omega brand, Tag Heuer.... These watches sell for thousands of dollars each. Wow, that blew me away!

Personally, I prefer to spend that kind of money on something else (to me, watches are just for telling the time), but it sure gives you a different perspective on what some people spend their money on....

When I think about it, I certainly could afford to wear such a watch if I wanted to, and I think that's part of the key. I know I could. I just prefer not to. But knowing I could if I wanted to, it makes quite a bit of mental difference. :)

- Dien Rice


An example of a high priced men's watch....

Hi Dien,

You are right.... Money and the value we place on anything are all relative, kind of like Einstein's theory of relativity in a way.

For example, real estate is only worth what people are prepared to pay for it at the time, and not what most people believe... That your house is worth what the market value is.

A friend of mine bought a house 6 months ago at $355,000... At the time there was another buyer who was equally interested in buying it, but the owner accepted my friend's offer first.
2 months later, the well heeled other buyer approached my friend and offered him $495,000!!! because he wanted it so badly... Although the market value of the home compared to houses of a similar design in the area had only risen by 5% above what he had paid.

The perceived value of money also depends on HOW much you have or don't have AND how QUICKLY it takes you to EARN it.

If something costs $1000 and it only takes a person one-hour to earn that amount... Then the value of the $1000 is of course perceived differently to a person who takes a month to earn it.

I always remember the famous line John Paul Getty once said (I'm pretty sure it was him?)...
"A billion dollars ain't what it used to be!"

I also believe that most people make their buying decisions based upon the price they pay for OTHER goods and services in their lives, products that may not necessarily be similar to the goods in question.... Rather than the benefits, quality or market value of the product being bought.

Then there are people who hate wasting CENTS but will not think twice in spending extra dollars.

For example... People who turn lights off when they leave a room for five minutes to save a few cents of electricity... But then spend an extra dollar on a pack of smokes at a convenience store rather than buy the pack at a discount supermarket???

Each one of us has a built in "yardstick" depending on the value we place on money and our existing wealth or earning capacity.

In marketing, I always apply what I call the
"Within the realms of reason" factor... In other words, when you price a product, you take into consideration the psychological value the majority of your target customers would be willing to pay, and not just the price of competing products or market values.

Sure... Salesmanship comes into it... If you are good enough you can sell products for much more than what they are really worth... But if a product is priced outside "the realms of reason" in your customer's mind it's going to be a hard sell indeed!

A good way to find out the perceived value of money for a given person is to ask the question..
"If you were to go to a casino... How much would you be prepared to lose at the roulette table, black Jack or the slots before you walked away?"

The amount of money a person is prepared to gamble and lose is a good indication of a person's ability to take a risk... Money wise.

If a person is prepared to lose $100 at the casino and walk away without blinking an eyelid.. Then it's not hard to sell that person an ebook for example for that amount or less, if you can convenience them it will make them money, etc.

Also people spend money based on "lots".
A "Lot" is an amount of money we "think in".

For example... I think in terms of "$100 lots", others may think in "units" of "$10" , "$1000 lots" or if you are Bill Gates "$10,000,000 lots".

What this means is that when I go to buy something, I "value" the product to the nearest "lot"... For instance, a $275 video player, in my mind in $300, a $8.75 pack of smokes is really $10, etc.

If I take a friend to lunch in a good restaurant...I think $100... Even though the bill might be $70.

Money.... It's really all about "units" of perceived measurement, earning capacity, status Quo, upbringing (our parents influence), economic times and value mix we equate to the spiritual and material world each of us have.

Then there is the ultimate definition of money...
"Money is TIME". Without TIME... There is no money, no matter how much you have.

Imagine winning a million dollars... With only a week left to live.

Then again... Imagine living lifetimes in a material world with no money at all as millions do.

Imagine a world with no money or where money is no longer is valued... The Celestine Prophecy, a book worth reading. Especially since the events of S11

Warmest Regards & $uccess

Ricky Higgs




1website1

Hi Ricky,

Thanks, that was a great post.... :)

A couple of other examples of the "relativity" of money came into my mind as I read your post....

One of the most common must be in the area of antiques. It's true that "one person's trash is another person's treasure".... An old telephone which one person thinks is only worth a dollar or two at the most, could be worth hundreds of dollars to someone else.... What it's worth is what people believe it is worth (and are willing to pay for it).

The other example was the high-tech stock market "bubble".... This really started with Netscape.

When Netscape floated, it was a company with no profits. However, Jim Clark had convinced everyone that the internet was the future (I think he was right), and that Netscape would be leading the way, which would turn into massive profits. People believed it, and the price of Netscape skyrocketed. Netscape was "worth" what people believed it was worth.

A lot of other high-tech companies then followed Netscape's example, where anything involved with the internet was thought to be worth a lot. The market valuation of these companies were what they were simply because that's what people believed.

Then last year, the market came crashing down. I think the "spark" seems to have been the court ruling against Microsoft. When that happened, it seemed to trigger the fall of all the high-tech stocks. Negative sentiment overcame the optimism, and what people thought high-tech stocks were "worth" changed dramatically. It was just a matter of change in belief.

However, the more evidence there is in favor of a "belief," the more likely it's going to spread and continue. And the less evidence there is in it's favor, the more likely that belief will probably collapse.... I think the high-valuation of high-tech stocks had a decreasing amount of evidence in favor or it, as internet companies struggled to make profits. And as more time went by without profits, the beliefs holding those prices up were gradually being eroded away....

I haven't read "The Celestine Prophecy" but I'll try to find a copy and check it out. Thanks Ricky, I really enjoyed your post! :)

- Dien

> But knowing I
> could if I wanted to, it makes quite a bit
> of mental difference. :)

I truly believe that it's less KNOWING, than it is BELIEVING! (Or maybe they're the same thing!)

Everything that is not a part of "nature" is something that began as an IDEA in someone's mind. An IDEA that that someone BELIEVED in.

On another board (I won't say where) I've challenged a "proselytizer" to consider the notion that the story of Jesus' life was perhaps an ILLUSTRATION of what we might accomplish, if we believe. Belief - the concept, the process.

(I ain't no bible thumper, but the notion that Peter walked on water 'til he got scared of the storm won't leave my mind! That, and the fact that no one of us uses much more than 10% of the grey matter we have leads my grey matter into some interesting waters)

I'm believing into existence the life, wealth, happiness I want. Have to. With all my 'so-called' credentials, I ain't lookin' fuh no job!

> Hi Dien,

My wife used to have an Antique Shoppe. When we'd go to an auction or estate sale to buy items for inventory she would first determine what she THOUGHT she could get for an item, at retail...then divide by 2...to arrive at a "reasonable indicator or what to PAY".

Some high priced items though she would figure if she could get $200 to $300 more than what she paid, she'd buy it.

And ALWAYS with the thought in back of her mind of, "Are there greater FOOLS than I am who would pay more for this item than I did?"

Sometimes...she'd not be able to find a greater "fool" than she was and she'd have to take a loss on the item to recover part of her money.

Fortunately though she was most always able to find someone who'd be willing to pay more for her stuff than she did.

This is the same with anything...whether you create an item (or service) or buy it; Are there people who are willing to pay MORE for it than it cost you?

Don Alm

> You are right.... Money and the value we
> place on anything are all relative, kind of
> like Einstein's theory of relativity in a
> way.

> For example, real estate is only worth what
> people are prepared to pay for it at the
> time, and not what most people believe...
> That your house is worth what the market
> value is.

> A friend of mine bought a house 6 months ago
> at $355,000... At the time there was another
> buyer who was equally interested in buying
> it, but the owner accepted my friend's offer
> first.
> 2 months later, the well heeled other buyer
> approached my friend and offered him
> $495,000!!! because he wanted it so badly...
> Although the market value of the home
> compared to houses of a similar design in
> the area had only risen by 5% above what he
> had paid.

> The perceived value of money also depends on
> HOW much you have or don't have AND how
> QUICKLY it takes you to EARN it.

> If something costs $1000 and it only takes a
> person one-hour to earn that amount... Then
> the value of the $1000 is of course
> perceived differently to a person who takes
> a month to earn it.

> I always remember the famous line John Paul
> Getty once said (I'm pretty sure it was
> him?)...
> "A billion dollars ain't what it used
> to be!"

> I also believe that most people make their
> buying decisions based upon the price they
> pay for OTHER goods and services in their
> lives, products that may not necessarily be
> similar to the goods in question.... Rather
> than the benefits, quality or market value
> of the product being bought.

> Then there are people who hate wasting CENTS
> but will not think twice in spending extra
> dollars.

> For example... People who turn lights off
> when they leave a room for five minutes to
> save a few cents of electricity... But then
> spend an extra dollar on a pack of smokes at
> a convenience store rather than buy the pack
> at a discount supermarket???

> Each one of us has a built in
> "yardstick" depending on the value
> we place on money and our existing wealth or
> earning capacity.

> In marketing, I always apply what I call the
> "Within the realms of reason"
> factor... In other words, when you price a
> product, you take into consideration the
> psychological value the majority of your
> target customers would be willing to pay,
> and not just the price of competing products
> or market values.

> Sure... Salesmanship comes into it... If you
> are good enough you can sell products for
> much more than what they are really worth...
> But if a product is priced outside "the
> realms of reason" in your customer's
> mind it's going to be a hard sell indeed!

> A good way to find out the perceived value
> of money for a given person is to ask the
> question..
> "If you were to go to a casino... How
> much would you be prepared to lose at the
> roulette table, black Jack or the slots
> before you walked away?"

> The amount of money a person is prepared to
> gamble and lose is a good indication of a
> person's ability to take a risk... Money
> wise.

> If a person is prepared to lose $100 at the
> casino and walk away without blinking an
> eyelid.. Then it's not hard to sell that
> person an ebook for example for that amount
> or less, if you can convenience them it will
> make them money, etc.

> Also people spend money based on
> "lots".
> A "Lot" is an amount of money we
> "think in".

> For example... I think in terms of
> "$100 lots", others may think in
> "units" of "$10" ,
> "$1000 lots" or if you are Bill
> Gates "$10,000,000 lots".

> What this means is that when I go to buy
> something, I "value" the product
> to the nearest "lot"... For
> instance, a $275 video player, in my mind in
> $300, a $8.75 pack of smokes is really $10,
> etc.

> If I take a friend to lunch in a good
> restaurant...I think $100... Even though the
> bill might be $70.

> Money.... It's really all about
> "units" of perceived measurement,
> earning capacity, status Quo, upbringing
> (our parents influence), economic times and
> value mix we equate to the spiritual and
> material world each of us have.

> Then there is the ultimate definition of
> money...
> "Money is TIME". Without TIME...
> There is no money, no matter how much you
> have.

> Imagine winning a million dollars... With
> only a week left to live.

> Then again... Imagine living lifetimes in a
> material world with no money at all as
> millions do.

> Imagine a world with no money or where money
> is no longer is valued... The Celestine
> Prophecy, a book worth reading. Especially
> since the events of S11

> Warmest Regards & $uccess

> Ricky Higgs




22 Ways To Make $50,000 Starting with $50

I like this topic Dien...
I've always felt "everything I see belongs
to me" if "I desire it"...

Some people don't think they own anything
until they actually "possess it"(meaning
have it in their personal space)
I never felt that way; this is an abundant
universe and "money" just allows you to
move something from "one place" to another...

If I give you what you perceive as valuable;
then I can move what you have to the space
I want...

When I started looking at the space between
objects: I stopped feeling like I was lacking
anything...

Hi Don,

Thanks for mentioning that.... As you know, I've done a bit of buying and selling myself (though not with antiques, mostly with computers and electronics). I found the thought process is similar to what you described.... How much can I sell it for? And after that, you can figure out the MOST you're willing to pay for it. And then, stick to that limit!

It's really a matter of knowledge, and becoming an "expert" in the resale values of items. Because of this, it's good to specialize....

You can make a living doing this, and it can be fun if you enjoy the kind of things you are dealing in.... With second-hand stuff, another bonus is that you can use it for a while before you resell it, if you choose to. (But the danger is you might grow too attached to it and never resell it. :) )

Online auctions have increased the possibilities too. I've found that selling over the online auctions is much easier than through the trader papers, at least for small, mailable items.... (When you do it this way, you also have to be sure you factor in the cost of shipping as well.)

Thanks again Don!

- Dien Rice

great post Dien :)

To me, money symbolises one thing: CHOICES.

And in our society, you get a lot more of them with it, than without it :)