Money Never Disappears. It Only Changes Form.
The Natural Laws of Money – Part 1: The Law of Conservation of Energy
Money Does Not Disappear – It Transforms
“Money disappears faster than it comes.”
“This was a waste.”
“If I make more, I’ll lose it anyway.”
Have you ever caught yourself thinking something like this?
While these could feel like the truth, they are just part of the story.
Before we go further, I invite you to reflect on your own understanding and perception of money.
Think about your last paycheque.
Let’s assume it was for $2,000. Do you still have the money sitting in your bank account or as cash in an envelope? Or you already spent some or all of it?
Do you think and feel like the money is gone?
Something in the line of thought of “I had $2,000 a week ago, and now, the money is gone. I have nothing left…”
If this is very close to your reality, how about your fear that you are simply not good with money? You cannot manage it. You feel like losing your money rather than saving and growing it.
Well… First of all, I want to say that you are not alone in this. Many of us, all over the world, are taught these simple half-truths about money.
The good news? Reality works differently.
The same laws that govern everything in nature govern the energy of money as well. Money never disappears; it simply changes form. The substance of it remains with you whether you realize it or not. When you understand this, you stop panicking every time your bank balance goes down.
The Law of Conservation of Energy – The 1st Law of Thermodynamics
This is governed by the Law of Conservation of Energy, also known as the 1st Law of Thermodynamics.
A quick refresher: first observed and documented simultaneously by Julius Robert Mayer and James Prescott Joule in the 1840’s, the law states that
“Energy cannot be created or destroyed – it can only transform from one form to another.”
Applying the Law to Your Paycheque
Let’s examine this and apply it to money and our everyday lives.
Take the $2,000 paycheque example.
Let’s say you are employed by a large corporation. You go to work, and that’s how you earn your money.
Assume that for the past two weeks, you earned $3,000. Out of these, you paid $1,000 for taxes and received a net $2,000.
Out of the $2,000, you invested $200 in a TFSA (tax-free savings account) and $300 in an RRSP (registered retirement savings plan). With the remaining $1,500, you paid your hydro bill, the gas bill, the mobile phone bill, the Internet bill (assume altogether $600) and bought food and household supplies (assume you spent $900).
All $3,000 is gone. Or, is it?
If you change your focus from the lack of money to the way you transformed your money, you will notice that:
Well, you have electricity in your home, which is vital for your survival. The same is the case with the gas, mobile phone and Internet.
Remember the last time there was a power outage? Or when the battery of your phone died? Or the Internet went down for all 10 minutes?
That’s when you realize how much your survival and well-being depend on these utilities. In other words, you took $600 and transformed it into utilities worth $600 – the energy of the $600 is still with you.
Exactly the same is the case with the food and household supplies you bought with the $900 – the cash is not with you, but you do have food and other supplies in your fridge, freezer and storage room worth $900.
Let’s take a few steps further.
You ate some of the food (let’s say it’s worth $200). The energy of the $200 is no longer in the form of food in your fridge. By eating it, you transform it into vital energy that your body and mind need. Thanks to this energy (worth $200), now, you have the power, motivation and health to go to work. Through the activities you perform, you transform the energy into benefits for your employer. In return, your employer pays you a salary.
The cycle goes on and on. Nothing is lost, just changes form.
What About Taxes?
You might be convinced that the cash you spend for utilities, food, supplies, etc., indeed is the transformation of the energy of money; but, I could almost hear some of you arguing back, “Ha! How about taxes! This is pure loss of money!”
I know that taxes, especially if you live in Canada, could be a sensitive topic for many people. I assure you, however, that money paid as taxes follows the same law of conservation of energy. After all, what are taxes? Taxes are the fee we pay to maintain our rights (and responsibilities) to live and work in a certain country and province.
Let’s take our example where we paid $1,000 for taxes. By paying this money, you transform the energy of the $1,000 to the right to live and work here (wherever here for you is). By exercising your right, you transform that energy into a salary of $3,000 (or net $2,000).
Not only that. Taxes fund infrastructure, healthcare, legal systems, roads, and public services. All of which benefits you as well.
Do you see it now? Even the energy of the money you spend for taxes is not lost. On this topic, more to follow in a special series about taxes.
How come we did not study that money never disappears?
Ok, let’s face it – we did study the law of conservation of energy at school. Yes, it is true that it was explained in the context of thermodynamics, but who was to say that this was its only application?
I want to invite you to start observing and noticing how this simple law applies to all other aspects in your life – health, relationships, happiness, and everything in between.
Only because a concept was explained by using one single aspect or matter, it does not mean it’s limited to it.
Use your critical thinking, and you will notice how your perceptions will start changing.
Where Attention Goes, Energy Flows
With your changed perceptions and expanded understanding, you will start noticing the shift in your reality.
When you focus on what that money became, you reinforce value and circulation.
When you focus only on the shrinking bank balance, you reinforce the feeling of loss.
So, if money never truly disappears…
Why Does Money Sometimes Stop Flowing?
Why does it sometimes feel stuck?
Why does it stop flowing?
Why does abundance feel blocked?
That’s where the 2nd Law of Thermodynamics changes everything.
- Money Never Disappears. It Only Changes Form.
- Money Is Energy: The 7 Universal Laws Governing Financial Flow
