The question of what is money worth to you is a topic that has come to the fore again recently with the release of the new £5 notes. For some strange reason, there has been a high level of interest and demand in the early runs of these new fivers in the United Kingdom. People like to get in on things at an early stage, that is understandable, but the value of these notes in the long term will be sentimental and of interest as opposed to being of cash value.

This is why the fact that people are paying over the odds for a fiver is a curious situation. There have been claims in the media that some new £5 notes have been changing hands for exorbitant sums of money. If you have been lucky enough to get your hands on one of these notes that are in high demand you have a chance to make a fantastic return on your investment. Whether you got the money from the bank or in your change after making a purchase, it is only worth £5. Then again, the true value of something is often what people are willing to pay for it. This is why there is a market for these notes and it brings to mind the question what is money worth to you?

Do you know what is money worth to you?

The only way that someone can get their monies worth after paying a lot of money for the new polymer £5 note is to sell it on to other people who also value the note at a high price and sell it on to them. Over time, there may be more people looking for this option but equally, there could be fewer buyers as the market eventually realises that at some point, the note is only going to be worth £5 to the buyer, which means that demand will likely fall.

Knowing what is money worth to you is also relevant when it comes to obtaining a loan. To get a sum of money, say £1,000 you actually have to pay more money than that in return. The interest charged on top of the loan amount suggests what you are willing to pay and what the money is actually worth to you.

You may not want to pay over the odds for a fiver but there will be times when paying over the odds for a loan amount of money makes perfect sense.