The money supply is the amount of money you have available for spending (money in your bank account and other financial accounts). You can spend money in any amount you like, but you can’t have more money than you have available.
The other day I was talking to a friend that had just lost his job. He was going to be out of work for a while, and his bank account was pretty empty. He said that if he had $100 to spend on something important he could buy a new car, or buy a new house instead. He was in the process of learning how to do that, at least.
Why would you want to use a bank account? You need a bank. It’s the easiest way to use the money you’re spending on it, but it’s also very expensive. The bank’s very well-known, but it’s not like the money that could be used by an amateur to go to the ATM to buy food, or a new car or a new house in this town. The main reason is that the money you want to buy doesn’t exist for you to use.
I would say that a new car would be the easiest to buy. I don’t think you ever need to be able to drive a car on a daily basis, so having a car to drive would be very convenient. If you were not able to use your car, then you would have to rent an SUV to get around. As it turns out though, the cars you buy can also be used to get you to the bank.
People who wish to have cash on hand can also use their credit cards to get them to the bank. However, you do need to have a minimum amount of money on hand to put on autopilot. I’d say it’s usually around $100,000, and that’s what most people have in the bank. If you don’t have that, then you would have to borrow the money from someone else or get the money from a bank.
The last one is the one that interests me the most. I am not sure which one has the best impact on your finances, but my guess is that it will be the second option. To see what would reduce the money supply, you need to look at different things: your income, your savings, your investment portfolio, and your debts. All three of these things can be affected by any of the other four options.
For example, the money supply can be reduced by decreasing an investment portfolio’s holdings of stocks and bonds. Of course, that would also affect your savings, but that’s a whole other topic.
While it would definitely affect your savings, it also affects your investment portfolio. In fact, the money supply can be reduced by decreasing the value of your investments portfolios. In other words, it would affect your investments portfolio by lowering its value.
Since the cost of a single investment portfolio is usually less than the total of your savings, you would expect the money supply to be reduced by decreasing the value of the portfolio. For example, if your investment portfolio value is currently $100,000, you would expect the money supply to be reduced by $100,000.
So if you are investing $1000 per month, then your money supply would be reduced by $1000 per month. This is because the cost per unit of investment is $1000, but your investment portfolio has value.