Future Wealth Builders
Mike’s Nominal Confusion: The Truth About Real Value
Hello and welcome to today’s insightful story.
Last week, we talked about the cost of owning. Find out more by clicking the tab below.
Today, we talk ‘the truth about real value’.
I Kings 21:2 NKJV
[2] So Ahab spoke to Naboth, saying, “Give me your vineyard, that I may have it for a vegetable garden, because it is near, next to my house; and for it I will give you a vineyard better than it. Or, if it seems good to you, I will give you its worth in money.”
https://bible.com/bible/114/1ki.21.2.NKJV
Mike was thrilled when his uncle gifted him $500 on his 14th birthday. “This is a lot of money!” he said to himself. His mind raced with ideas—new sneakers, the latest video game, and a few fast-food treats with his friends. He proudly told his classmates about his cash, feeling like the richest teenager in town. What Mike didn’t realize was that he had fallen into nominal confusion—focusing only on the amount of money he had, without thinking about what it could actually buy over time.
Instead of investing, Mike spent every dollar within a few weeks. He didn’t notice that prices were slowly creeping up. The sneakers he bought for $100 were $120 the next year. The game that cost $60 was now $75. Even his favorite meal at his go-to fast-food spot was getting pricier. But Mike wasn’t paying attention—he still thought $500 was a lot of money because it sounded big. What he didn’t realize was that money loses its power over time if you don’t use it wisely.
By the time Mike turned 18, he got his first part-time job. His paycheck was $200 a week, and at first, he felt rich again. But then, he started noticing something frustrating. His money didn’t go as far as he expected. His favorite sneakers were now $150, and a simple meal at a restaurant took a big chunk out of his earnings. He had more money in numbers, but in reality, he couldn’t buy as much as before. He started wondering: "Why does it feel like I have more money, but less spending power?"
Mike’s older cousin, Lisa, finally explained it to him: "It's called inflation, Mike. Prices go up over time, so the same amount of money buys you less. If you don’t invest, your money won’t grow, but everything else will get more expensive.” That hit Mike hard. He realized that while he had been excited about having big numbers, he never thought about what they actually meant in the real value. If he had invested part of his money wisely, it could have grown instead of losing value.
The sneakers soared, the meals did too,
Yet Mike still thought his cash would do.
Until one day, he stopped to see,
His money held no guarantee.
From that day forward, Mike changed his approach. He started learning about investing and making his money work for him instead of just spending it. He understood that financial intelligence wasn’t about how much money you had—it was about how much value you could get from it. If only he had known this earlier, he would have made smarter choices. But it wasn’t too late. He was ready to take control of his financial future, and this time, he was thinking beyond just numbers.