Apart from being 75% cotton coated in special ink …
A dollar is a representation of value
Before you roll your eyes and step away I promise you there is a point to my question. A dollar is a small loaf of cheaply made bread, it is also a few slices of ham or a candy bar. At least a dollar is these things in Florida at the time of writing this post. Elsewhere a dollar may easily be three loaves of bread or half a loaf of bread, if someone puts a slice in a toaster and puts a speck of butter on it a dollar may, in fact, be one slice of bread.
A dollar derives its value by being a tiny representation of all things of value that it represents. In a perfect world, we would be able to take a complete stocktake of all things of value in existence and then we would come up with a number of dollars that represents all things of value. This, of course, is not possible which is why the dollar fluctuates as things are created, as demand moves to things owned by holders of other currencies such as the Euro and the Yen. Currency exchange is also controlled by the respective countries or block of countries in the case of the European Union.
So what is a dollar worth?
This is what I want you to give a little thought about especially if you are in business. A dollar may be worth one minute of my time, whilst it may be worth a millisecond of Daymond John’s time and it may be worth five minutes of a call center representatives time working at $12 an hour, to a call center representative in India that dollar may, be thirty minutes of their time. However, you must consider that whilst a dollar could be thirty minutes of their time it is also 65 rupees which could buy you two loaves of bread and leave you some change. Of course, time is one of the most valuable things to an individual however when it comes to economies intellectual property, commodities like oil, military equipment, and many other things hold much more stable value. A dollar when it represents a fraction of a rental property, for example, may, in fact, earn an income of its own.
The profitable dollar.
Generally speaking, a dollar that is uninvested is a depreciating dollar, it loses value over time due to inflation. However, a well-invested dollar gains value as the thing it represents gains value. A dollar can be used to earn another dollar taking the loaf of bread as a simple example, simply adding an ingredient placing it in between two slices of bread you can easily sell it to a colleague that forgot their lunch. The main message here, of course, is that you should give some thought as to how to make your dollar profitable.
The point of thinking about what a dollar is.
A dollar is simply a representation of value and as a business person that sets prices and puts dollars to work, it is important to consider what that dollar truly represents. A dollar is nothing but a piece of cotton and linen covered in ink but it also represents in some way or another everything you could ever desire. A dollar is a tiny piece of that newly released I-phone you want, that dollar may be your next loaf of bread or it may be an hour of parking. A dollar however truly is nothing and you should keep that in mind, a dollar is simply a tool.
When thinking about money always think about how to increase your value, how to put your money to work and how you can maximize the value of that dollar. A dollar in the right hands used the right way is simply a dollar waiting to multiply.