Where money comes from

Have you asked yourself where all your money comes from? Learn about the different ways to get money.

Money is a universal commodity, which is the equivalent of the value of goods and services. But where does money come from? The word “money” also refers to the coins or paper money, which is a measure of the cost of buying or selling.


The need for commercial equivalent comes from the ancient times. Back then people used to exchange objects instead of having actual money.

Later, the various metals like copper, silver and gold became the new money. Since the 19th century people started using the paper money, which were issued by the bank.

Currency is a kind of money which exists on the territory of the certain country. For instance, Algeria's currency is Algerian dinar; Guinea’s is Guinea Franc; Egypt’s - Egyptian pound; Kenya’s - Kenyan shilling; Nigeria’s - Nigerian naira.

Another concept closely related to the concept of money is income. Income is money that the company or people get for a certain period of time.

What are the sources of income for the person? Or, in other words, where does the money come from?

One of the main sources of income is wages that a person receives by doing some work in the enterprise or other organization.


There’s a special kind of income for the authors. The people, who write books or do some other creative things, get this kind of income.

Unemployed families with children and some other categories of citizens can receive a variety of benefits from the state.

People who have reached the so-called retirement age are entitled to a pension. The disabled people also receive a pension from the state.

In addition, money can be received as a gift or an inheritance.

For the young people enrolled in higher education, one of the scholarships can be a source of income.

If you own the property, you can receive the income from renting it out or from the sale. In addition, to get the money, you can sell any other property you own. It can be even clothes or expensive cars.  


People involved in the farm business receive income from the sale of their agricultural products.

You can also earn money by investing in securities and receiving interest on funds held in bank deposit accounts.

Winning money in the lottery is difficult, but it’s not impossible. In this way, about 30 South Africans have become millionaires thanks to the lottery «Powerball».

The source of the money is not always the revenues. You can also get money by taking them in debt from a private person or getting a bank loan. However, before taking such a step, it is better to evaluate the ability to pay both the loan and the related interest.

READ ALSO: What is money?

Nowadays the so-called electronic money is becoming more and more popular. The main type of electronic money is a bank payment card. Now workers get their wages not in cash but through their special bank account. A special plastic card is your access to the account. It provides multiple levels of protection.

With the help of this card you can withdraw cash from an ATM or the payment terminal, as well as buy goods in the store without giving out cash.

Where does the money that companies need to pay to their workers come from? Of course, the main source of income for the company is the sale of goods or services produced by it.

In order for a State to exist and function, as well as to provide citizens with pensions and benefits, it should have its own budget. The main sources of the budget of any state are taxes imposed on citizens and businesses, duties, fees, revenues from the foreign trade and foreign loans.


Where the money comes from? – Book

There is a great book “Where does the money come from” by Josh Ryan-Collins.

Book Description

"What is money? How is it created? How does it enter into circulation? These are simple and vital questions it might seem, but the answers remain contested and often muddled."

Foreword by Prof Charles A. E. Goodhart, Professor Emeritus of Banking and Finance, London School of Economics

“Refreshing and clear. The way monetary economics and banking is taught in many – maybe most – universities is very misleading and this book helps people explain how the mechanics of the system work.”

- Professor David Miles, Monetary Policy Committee, Bank of England

Where money comes from? Video


"to have the money, you hard and work hard", "money comes through the mind and ingenuity", "to make money, you need to pump the business skills and qualities — the so-called soft skills". The area of interests of people who are under the influence of passion, may be very different from any manual labor on the lower stages of the career ladder to intellectual work in managerial positions. The main thing that unites these people is the idea of their labor as a way of earning money, a decent amount which is able to fulfill basic material desires, and, hence, bring happiness. Money and the goodness of the External activity of people under the influence of forces of goodness, can be exactly the same as humans, which directs the power of passion. However, their internal perception of the work is fundamentally different. They perceive the activity as a service to people. Money is — they know will inevitably come, if they are to perform well their duties. The question "where does the money come from?" they answer: "money comes as a result of providing a valuable service to others". That is how they understand the nature of their activities. The work is easy and does not cause much anxiety.

Answered 1 year ago.
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