That is a question which has bothered me for quite some time. I have watched as clients packed money into savings and investment accounts, mattresses and coffee cans well in excess of what they might need to achieve their goals. In many cases, this saving was to the detriment of a lifestyle the client hoped to live by making sacrifices they often regretted. As I watched this, I wondered if the saved money itself had value?

My answer is that money does not have any value. Money is only a representation of some other value. A $20 bill is not worth anything, but it could represent taking out a friend to lunch which is of great value to me. A million dollar investment account has no value itself, but some purpose (e.g. retirement fund) can be assigned to that money so that it will represent value.

My belief is that every penny earned and saved should be immediately and consciously “spent." Value should be assigned to each dollar. This need not be a tangible item, however. You might choose to save heavily because it represents security to you and you wish to have a large emergency fund.  What is important is that you determine what you value greatly, how you most want your money to be used and then assign your money to those items identified.

Be conscious about the value your money represents, it will help you become more financially aware and help you use your money how you most hope to. Budgeting is easy when you have already set aside money for things you truly value.

My purpose with this post is to share my thoughts, but more importantly to pose the question. I would love to hear if you think money has value?