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I like earning money. I like having it. I like giving it away. Still, it’s worth asking: How important is money?
Yes, money can pay for the necessities we all need—food, shelter, transport—and more of it has the potential to buy us a better life. The necessities are obviously (ahem) necessary. But what about the frills that more money can buy us?
That discretionary spending has the potential to bring big smiles. Still, it’s hard to imagine that these frills would do much to offset, say, the pain of persistent ill-health or that caused by the death of a loved one. Indeed, I assume—and hope—most folks would happily give up this extra spending in return for better health and more time with those they love. I also suspect that this extra money doesn’t do much to make chronically unhappy folks feel all that happier.
So, how important is money?
I’d argue that it ranks in importance below time, good health and companionship. But it’s also hard to separate money from these things. Instead, money is inextricably entwined with these other factors: It can potentially buy us special times with others, better health and relief from tasks we dislike.
But money has its limits, especially when it comes to health. Over the past year, I’ve benefited from the finest health care, and I’m only vaguely aware of what all this has cost. But that health care hasn’t extended my life by much, and throwing even more money at the problem wouldn’t—as best I can tell—have made any difference.
What would I pay to get an extra 12 months? Perhaps fortunately, that’s not an option—because then I really would be forced to decide how important money is.
I find that those who debate the importance of money, generally have it. Let’s hear the opinions of a panel of randomly selected poor folks discuss the subject.
Before answering how “the poor” perceives the importance of money, it might be necessary to ask: what does it mean to be poor? Is it mainly lacking of money, or is it lacking of security?
Some people have little money but feel secure – for example, Medicaid nursing home residents. Money would endanger their eligibility for the government’s assistance. Some people even spend down to be poor and secure, joining the Medicaid population.
Others may be wealthy but lack security, always anxious that the wealth is insufficient or vulnerable. Seneca the Stoic said “the man who craves more … is poor.”
And of course, many struggle with both insufficient money and security – perhaps the most acute form of poverty.
In my view, money is like oxygen: Without (enough of) it, we are in trouble; Having too much of it, it may not benefit us a lot. I like the priority ranking is: People first, then Money, then Things.
The Way It Is
William Stafford
There’s a thread you follow. It goes among
things that change. But it doesn’t change.
People wonder about what you are pursuing.
You have to explain about the thread.
But it is hard for others to see.
While you hold it you can’t get lost.
Tragedies happen; people get hurt
or die; and you suffer and get old.
Nothing you do can stop time’s unfolding.
You don’t ever let go of the thread.
Thanks again for a well thought out article. I fully agree with your ranking about money, “ranks in importance below time, good health and companionship.” My guess is you get it, one day at a time, concentrate on what YOU can do. Enjoy the time you have. Keep writing, we appreciate all your Wisdom.
Money in and of itself has no meaning. When one feels OK inside, as in “I am/I have enough”, money becomes an extension of that spiritual fullness. When there’s a bit too much of a hole in one’s soul, money can become just another false god used to fill the emptiness, akin to alcohol, workaholism, or sex. Jonathan, you have brought much meaning to a lot of people. I for one carry your gifts with me each day. May you feel your fullness now.
It is a useful tool and can be a means to an end. In my life it has been helpful, and a facilitator. At times it can be used as a manipulative device and a means to reward. Having sufficiency can free one up, but it requires self control and wisdom to achieve an elegant sufficiency.
Money is clearly important. Were it not so, Humble Dollar would have no readers, and no contributors. As others have pointed out, there is a great deal of variability in terms of how important money is to us. We don’t want to be like Scrooge McDuck, constantly counting our money. Because when we are counting money, we are not living life: spending time with family, friends, helping others, pursuing good health, etc.
We chase health and wealth as if they were ours to keep—but the only certainty in life is change.
After a serious illness, priorities often shift. What once seemed important—financial plans, career goals, retirement timelines—begins to fade in urgency.
Empirical studies show that many patients, when facing life’s fragility, come to value dignity, comfort, meaningful relationships, quality of life, and spiritual peace far above physical concerns. These are expressions of something deeper: hope. Even when the hope for a cure fades, hope itself endures. It transforms—from recovery to connection, from outcomes to presence. This quiet hope, rooted in deeply held values, often transcends physical concern.
Some may think of hope as simply wishing for a better future. But experienced physicians know that when a patient’s values are heard, honored, and held—especially at life’s edge—hope does not fade. It deepens.
Importance of money varies with life stages. During peak earning years, money offers many choices: Best schools for children, vacation homes, exotic travel, etc and the list is endless. However, for many retirees in their eighties, money is no longer a driver. They are satisfied with simple pleasures. For them, maintaining good health is most important, assuming they have adequately provided for their current and future expenses.
As Rick says, the answer is complicated. But I suspect personality carries a lot of weight. To flip your phrase around, some people are :”chronically happy”. It seems that circumstances of birth or misfortune don’t affect their basic attitude toward life. Storms of emotion may pass through them, but they return to their original calm state. And, as you say, some people can’t buy lasting happiness with any amount of money.
Mankind emerged 200,000 years ago, but only in the last 1000 or so has the concept of “money” impacted human life. For most of its existence, our species has walked the earth without having any idea what money was, as all other species still do.
Yet today it is the key determinant in the length, quality and enjoyment of our lives. Money, or the lack of it, has become the core influence in most human lives, and our concern about money extends even beyond the end of those lives. On some level, that amazes me.
My take is that the elemental benefit of having money is the removal of stress — the more we have, the less we worry about covering our basic human needs. And if used properly, it can help us achieve a longer and better life.
Everything else is details.
I agree completely.
Its sad that “wealth” and “worth” are synonymous with financial accumulation when one can be wealthy and worthy in so many other ways.
That’s not accurate. Money, in some form, has been used for at least 5,000 years. Early forms included commodities like cowrie shells, salt, and livestock.
The first known physical forms of money, like metal coins, emerged around 650-600 BC so that at a minimum is 2600 years of money use.
I was speaking of mankind in general. Most of human civilization was still on a barter economy, as with your examples of cattle and salt, until the last 1000 years or so.
Money will allow us to move into a new house next week. My wife will be happier she tells me, but me, probably not happier than I am in the existing home. At 82 it seems to me not to matter much. We could not make the move without the funds. Thank you conservative living for 60+ years for allowing us to have a choice. Having choices seems to be the key to what this money is all about for me. Lesser bucks, fewer choices, but the money makes your choices expand and multiply. If I were living off just SS, there would remain lots of choices, but on a different level. I would not be thinking about what cruise I wish to take in 2026, rather will the current heat wave make my electricity bill go up.
I would trade lots of dollars to regain the ability to stand up straight and walk properly. With good health and funds the choices are amazing. With comprised health and funds the choices change and the funds make lesser difference. But the American way is to find a work around no matter what the situation and then continue the march as long as you can take a breath.
I enjoy HD for its thoughtful content.
Hello James:
I turned 80 in March of this year and progressively have developed the same problem and would also love “to regain the ability to stand up straight and walk properly.” (sigh)
Frugal Dave
Jonathan, thanks once again for a thought-provoking post. My observation is that our views on money’s importance is a complicated function of a number of individual factors – our personality, our economic circumstances, our environment, our upbringing, and more. I guess we will never really know until we are put to the test.
“Don’t tell me where your priorities are. Show me where you spend your money and I’ll tell you what they are” James W. Frick
There are many things more important than money, health being at the top, and family and friends as well, but let’s not kid ourselves, as Jonathan noted money is part of all that as well.
Even the Bible recognizes that in the story of the Good Samaritan where he helped a person on the road, took him to an inn and then gave silver coins to the innkeeper to aid the beaten man – with the promise of more silver if needed for the care provided.
Interesting – I thought from the title this might be a discussion on cash money vs digital money which is a potential digression of its own when it comes to resilience and cyber vulnerability.
On the broader concept of money or wealth more generally I think it depends on the individual’s perspective.
I tend to view it as a store of potential energy – not having that takeout coffee 5 days a week means I’ve banked at least $1000 more in the year for that vacation . The difficult thing that I see I have to tackle in retirement is flipping over to being comfortable releasing a lot of that potential energy (decumulating).
Obviously it is human nature for those that have money to want to retain it as a buffer for comfort. But as you identify it can only do so much. It can’t stop a grandchild being diagnosed with leukemia, it can’t stop you being T boned by a distracted driver, it can’t fight off a bear attack or repel a rogue shooter at the shopping mall. So I think we all need to get to grips with the purpose of what it is for and use it wisely and occasionally frivolously once we’ve hit “enough”.
Thanks Jonathan. I think your post captures and acknowledges the complexity of this question. Health, time & relationships are all vital, but some degree of financial freedom can promote all of these things.
I feel like I don’t have a good answer, but at least can make a conscious effort each day to get the balance right.
This quote from Mahatma Gandhi comes to mind. “It is health that is real wealth and not pieces of gold and silver”