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Learn About the Origin of Money to Make Extra Money

Learn About the Origin of Money to Make Extra Money

By   |   Submitted On January 02, 2010
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Many people want to make extra money by different ways. By the term 'extra money' one means extra income and extra effort. Without these two factors earning extra money is tough. Money is the most suitable mode of transaction which has made today's business very effortless.
Right from the days of barter system to that time when money actually came into existence, doing business was not an easy matter. There are varied opinions about the origin of money. Some say that the first money came into view in the year 7-8 BC. Before that goods were exchanged between traders. To make extra money one must first understand about the origin of money, that is, from where money actually originated.
Carl Menger, the originator of the Austrian School of economics, has shared his views on the origin of money. In the early days, trade was very slow. People tried to make extra money by selling goods for those goods which will be of their use. Therefore, there was no definite value for a good. The value for every good depended on the utility of the good to the particular trader. Hence the transactions of trade were restricted to situations. For example, A is a person whose sword might have a lesser use value to him than B's plough. But for B, the sword has a greater use value to him than his plough. Hence, when A and B exchange their sword and plough between each other, both make extra money.
The exchanges which take place under these condition seldom happens because it is rare that the possession of a person has a lesser use worth to him than the possession of another person to whom the worth of the good is higher at the same time. Due to this rare occurrence trading in the earlier days were also rare. Therefore, people had to meet traders and create a position to perform the exchange to make extra money.
This barter system was creating confusion among traders as the value of a certain commodity was different for different individuals. It is then that a fixed mode of transaction was thought about. A particular good which was acceptable to every person in trade was considered as the value which could be given as a substitute for any other product. The goods were referred as "Geld" by the people of those times. The word "gelten" means to reimburse or pay.
Gradually "Geld" was replaced by other goods like shells, sugar, fish or something else. In the northern countries fur was accepted as money. Therefore, it not only depended from place to place, country to country, but also varied from an individual to individual. This was the way people used to make extra money in those days.
Gradually, with the increase of trade, people felt the need of a more suitable mode of transaction. Hence, money came into existence. Now, money has made business dealings very easy. Universally accepted, money has a fixed value in each country. Therefore, trading is more convenient with the existence of money.
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