Kinetic and potential energy.
“The kinetic energy of an object is the energy that it possesses due to its motion.”
“Potential energy is the energy held by an object because of its position relative to other objects, stresses within itself, its electric charge, or other factors.”
So using the two types of energy as an analogy with money…
- Kinetic use of money is spending it…money is moving from one place to another.
- Potential use of money is having it…you hold it or making it grow (it is still in your possession).
Bow and Arrow.
Potential use of money is much more powerful than kinetic use of money, because not only do I still have the power to use the money in any way, the money has the potential of becoming more money because it is still in my possession. The feeling that I have…the power to buy something, whatever it is…is much more powerful than actually buying that something.
It's kind of like pulling a bow back with an arrow on it. Before I shoot the arrow, I have the power to shoot it at anything that I'd like, but after I release the bow and the arrow flies away, I have no more arrow, so my power to shoot anything no longer exists.
Once I spend the money, and it turns into the kinetic use of money, I don't have that potential power of money anymore, somebody else does.
The power of having money.
Money will always have more power when I have possession of it. Because I always know that if I have that money to do something with it. Obviously I have to spend it on some stuff in order to survive, and be happy, like food, clothes, shelter, a vacation now and then, etc… So money is useful for that.
But with most of my money, I want to grow it. I want to save for a rainy day. And I want to have the power to use it in any way that I want…and I need to have money in the first place to do that.
Stay frosty people