The final question about how money works is the obvious and only question on most people's minds:
"How can I get rich?"
1. Understand what money is. Money is no more or less than a container of value, enabling you to store or exchange the value that you create. Don't have enough money? Simple: beginning today, start creating more value and making smarter exchanges.
2. Throw out those tired old superstitions. Money, being merely a container, is neither good nor evil. It is not dirty, nor is it corrupting. While power can corrupt, money has only the ability to make you more of what you already are. Being rich is great and being poor sucks. There is nothing honorable about burying your talent and staying poor. Rich people are for the most part caring, generous, wonderful and spiritual human beings. Ignore the occasional rare but loudly publicized "airplane crashes."
3. Get the Big Secret: Use money to acquire the sort of assets that make making money easy. Never spend that sort of money on anything except productive assets. Your goal should be to use more and more assets and less and less of your personal labor to create a living.
4. Acquire the following books. Read, study and re-read them. Make them an integral part of your thinking. "Oh, I can't afford all those books!" Can you afford a free library card? Rich people are resourceful. Start being rich (resourceful) right now and stop looking for excuses.
The Richest Man in Babylon
Think and Grow Rich
How Rich People Think
Rich Dad Poor Dad: What The Rich Teach Their Kids About Money That the Poor and Middle Class Do Not!
The Magician's Way: What It Really Takes to Find Your Treasure
Now, Discover Your Strengths
The E-Myth Revisited: Why Most Small Businesses Don't Work and What to Do About It
Getting Things Done: The Art of Stress-Free Productivity
Secrets of the Millionaire Mind: Mastering the Inner Game of Wealth
5. Begin managing your money in the following way:
a) Take your weekly take-home pay (welfare check, or whatever), and divide it into 10 parts.
b) Take 10% (one tenth) off the top of your income and give it away. I prefer to give mine to organizations with a proven track-record of doing the maximum good with it, but it is your choice whom or what to give it to. Almost every wealth "expert" I've ever studied has this step as their #1 action for getting rich. Surprised?
c) Take another 10% of your pay and put it in an interest-bearing account or a CD term deposit. Never touch this money. When there is enough of it, start investing it in sure income-producing assets (stocks, bonds, rental property). If you have a viable, thriving small business, you might invest this money in proven income-producing assets for the business, but not on any speculative ventures.
d) Take another 10% of your income and save it in a special, separate bank account for something you determine ahead of time like a new fridge, a second-hand car, a vacation or a down payment on a house. Spend this money only when your pre-determined goal is achieved.
e) With the rest of your income (70% or seven tenths): find a way to meet all your regular expenses with this amount. This includes rent, food, gas, electricity, water, and clothing. Cut out all non-essentials, but include a small celebration, outing or special treat each month. It is valuable to set aside a few percent of your household budget as a "contingency" fund in case the kitchen blows up or something. If this isn't enough money to live on, start looking for immediate ways of increasing your income: a better job, overtime, a sideline business, window washing, taking in laundry, dog-walking or grooming, handyman work, etc. The possibilities of things you can do evenings or weekends are unlimited.
If you do this for the rest of your life, there is no possible way that you can remain a slave to poverty. This works 100% of the time when it is used consistently. When your income goes up and you are able, you might decrease your living expenses percentage from 70% down to 60% or even to 50% of your take-home pay. This allows you to take an additional 10% and invest in yourself through education, books or courses, and to invest even more into income-producing assets.
Of course all this and more you will learn from the books on the recommended reading list, and from others besides that you will doubtless find. Rich people never stop learning, as you will also discover. Your brain is always your best investment.