Today’s Trick Question: What is Profit?

The Profit Motive

What is profit? It’s often described as a financial gain, especially the difference between the amount earned and the amount spent in buying, operating, or producing something. For example if the mint makes 25 cent coins, then it should expect quarterly profits. ? But here on Freedom 35 we like to think outside the box. So here’s another definition.

Profit: Any type of advantage or benefit that’s gained from an investment.

This means that profit doesn’t have to be measured in currency. In fact, we all have different profit motives that drive us to get out of bed each morning, and most of those motives aren’t related to money intrinsically. If we attend school and hope to gain more than the time and effort we invest into our education then our profit is more knowledge. If we cook a meal then our profit is the food we get to eat.? If we invest in a marriage then we expect to profit from being in a stable and committed relationship. If we decide to hangout with some pals, then everyone is investing their time hoping to profit from mutual friendship, fun experiences, and companionship. If we invest in working out then we profit by becoming healthier, or living longer.


Profit in regards to actual money, as in a financial profit, is only a small part of our overall desire to profit in general. Since money isn’t useful in and of itself we can only use it as a proxy to hold value so that we can exchange it for something else later. 🙂 This is why it’s important to not get emotionally attached to money. Money is the form of profit that is not personalized. If our friend offers to drive us to the airport, we would feel very grateful of course. But if they tell us it would cost $30, then we would feel offended. How dare they undermine our friendship and disrespect us. ? That’s because there’s a personal relationship at stake. But if we take a taxi to the airport it’s then conventional to use money to measure the value of that service. So cash is what we use to gauge profit if there’s not a personal relationship involved with a transaction.

Profit can come in many different shapes and forms. We’re always hoping to profit, or gain more, than we’re investing into something. Otherwise there’s no point in doing it. It’s not selfish to think of life as this way because it’s just part of nature. The entire animal kingdom is driven by profit motives. 🙂

Random Useless Fact: 

Thousand Island dressing is called American Sauce in Germany.


Author: Liquid Independence

Editor in Chief at Freedom 35 Blog.

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09/21/2015 5:45 am

Profit: Any type of advantage or benefit that’s gained from an investment.

You also need to define “investment”.

Buying a stock is not an investment because it does not lead to any future production. It might lead to profit, but not production.

All your examples are a mix of time, money, and direct personal effort…kind of like the investment a business owner would incur. Thus, production and profit occur.


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