To be literate about personal finance one needs to know a bit of economics.
1st to the big question!
Tick Tock……Tick Tock……….Tick Tock……….
If they were we wouldn’t need to worry. We could get anything we wanted any time we wanted it. But they’re not because the last time I looked in the mirror I was getting older and so was everyone around me. And when it comes to money no one disagrees that there’s never enough to go around.
So I get the time thing and I’ll come back to that. But this shortage of money thing let’s deal with that now. In economics speak we’d say money just like everything else is scarce. In my lexicon economics is the “law of scarcity”.
So given things are scarce what do we need to do?
Scarcity forces us to choose between this or that, now or later. The vital point is that we have no choice but to choose.
In Basic Financial Literacy – Part 2 I’ll discuss Creativity and the paradox of Scarcity.
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