“Why does everything cost money?” is a question on many people’s minds right now. By the way, why won’t they ask when the price of everything keeps increasing?
To succinctly put it, not everything costs money. However, the things that don’t cost money in this world are less.
So, yes, the good things in life are available free of charge. We don’t pay a dime for the air we breathe and the solar energy that brightens the day. Imagine if we had to turn on our lights all through the day. Our electricity bills will be up the roof.
Continue reading to know why things cost money.
Reasons Everything Cost Money
You can’t use your car without fuel. You can’t get fuel without money. You also can’t eat in a restaurant without money unless you’re the owner or have some immunity to eat there for a given period.
The list goes on and on. You can’t do many things without money. But the question is, why are things this way?
1. Money is a means of exchange:
If you want something you don’t have, you have to get it by exchanging some money for it. If you’re hungry, you can exchange food for money.
It’s the same thing between a yoga teacher and a student. The yoga teacher has the experience and expertise. They can also devote their time to teaching you.
However, if you want their time, you have to exchange it for money. If you want to buy clothes to wear, you have to exchange them for money.
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2. Money can match the worth of things:
In football, players have a specific value. If a club wants a player in another club, they must agree to pay the market value of that player. The expertise, experience, and potential of the player would determine his or her market value.
It’s not only in football, though. Everything that costs money has a specific value. If something doesn’t cost money, you can say it’s worthless.
People value gold and can put their lives on the line to mine it because of its worth. Today, an ounce of gold cost over 1,800 U.S. dollars.
So, if you want an ounce of gold, you have to bring something worth the gold. By paying $1,800, you can walk home with an ounce of gold.
So, keep in mind those things that have value cost money. Let’s put it this way. Anything produced or made by human beings costs money. These include your shoes, clothes, wigs, jewelry, house, cars, private jets, etc.
How do people estimate the worth of things and cost them? It’s simple. They consider the material used in making it, time, energy, market demand, and risk involved.
Gold, for instance, isn’t a common commodity. It takes time, energy, a huge risk, and resources to mine it.
3. We value things we splash money on:
Most don’t appreciate free things. If you attended free training and a paid one, which will you take more seriously? Of course, you’ll take the paid one more seriously.
Why is it so? It’s because you paid for it. It’s your money, and you know how difficult it is to make money.
If someone gifts you a pair of shoes and you still have the ones you got from the market, which will you treat with more care? Of course, you’ll value the one you bought with your hard-earned money.
So, if things don’t cost money, most people don’t value them. If education were entirely free, many people wouldn’t put so much effort into acquiring a degree.
4. Money gives you the power to own things legally:
Walk into any store, pick up the least expensive item from the shelf, and attempt to walk away without paying. The security guards and management of that store might mess you up.
They might even tag the person as a criminal. Why? The store is still the owner of the item. You haven’t made it yours legally.
When you pay for an item, you’ll automatically become the rightful owner of that item. You can make your way out of the store without anyone embarrassing you.
You can’t move into a house listed for sale if you haven’t paid the amount the owner requests to let the property go.
The moment you pay the amount, you’ll receive all the documents of the house, including the keys to the property. At that point, the house is yours. No one would call the cops on you whenever you move in.
So, money gives you the power to own things legally. If you pay the worth or requested amount of things, the owner can relinquish them to you.
5. Money is a motivating factor:
The food items you find sold in a grocery store or the clothes you’re wearing were cultivated or designed by someone.
Crop cultivation takes time, energy and requires some investment. The farmer has to buy seeds, weed the farm, and do other agronomic practices that cost money.
It’s the same thing for fashion designers; they buy materials to build dresses. Building a dress isn’t an easy task. You also have to devote time and energy to build the dress from scratch.
So, imagine getting such agricultural produce without paying. What will the farmer get in return? Perhaps, the farmer would receive a thank you and a hug.
But the question is, can a “thank you” help farmers to purchase seeds and other materials to cultivate in the next farming season? That’s not possible. The farmer may even lose the motivation to keep farming.
By the way, nobody sets up a business to run at a loss. The sole aim is to make an impact and make a profit in the process of doing that.
So, the reason everything costs money is that producing them costs money too. You have to purchase materials, buy or hire machinery and laborers. All these would also guide you in fixing the product’s selling price.
Money can motivate employees to give their all. It can also motivate a company to increase production to meet the increased demand of a product.
6. To encourage steady production:
If a manufacturer spends money to create a product and gives them out free, don’t expect that person to produce the same product repeatedly.
The person will either run out of cash to purchase materials or pay the workers. With that, you won’t be getting your favorite products any longer.
However, if the item has a price and the producer makes a profit from its sale, chances are production will continue.
So, now you know why everything costs money. And as we earlier said, not everything costs money. You don’t pay for the air you breathe. However, you pay for the food you eat. Even if you are the one that cultivated the crop, you still need to spend money to acquire seeds and do other things.
There are reasons most things cost money. We have taken out time to highlight them here. So, if you’re looking for the reasons things cost money, we suggest you read this post from start to finish.
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