Why David Slater

Why Money Is Like An Orange

Why money is more like an orange, than it is like math or numbers. Most people perceive money as a mathematical concept
where 1+1+1 always equals 3.

But...money does not work that way.

Although interest as a function of mathematics can be used to calculate or project the growth of a number that represents dollars and cents, the value that results, does not necessarily equate to its' purchasing power.  

For this reason...money acts more like an orange...

Here's why...

1 Orange + 1 Orange + 1 Orange = 3 Oranges

However, if left on a table in a room for 1 day, there would be 3 oranges.
         .....for 10 days, there would be 3 mushy oranges.
         .....for 1 year, there would be dust.
         .....for 5 years, there would be NOTHING.

So, what does this have to do with money?

Money, if used, buys good and services, which are consumed and enjoyed like oranges.  If money is used today, then $1 +$1 + $1 = $3 worth of purchasing power.

However, if left on a table like the oranges, the purchasing power of those $3 will wither away over time and if not used, the $3 will become virtually worthless.