Dan Ariely sheds some great insights into what drives our irrationally rational behavior. Mr. Money Moustache links to this article from the good professor. If you have the time or inclination, I highly recommend this course, titled Introduction to Behavioral Economics
Francois Gouillart explains why he’s literally put his money where his mouth is – he’s backing a a kitchen incubator project that helps local youth become food entrepreneurs through education and financing.
Simple advice. Advice that is usually forgotten in the race for more. Read on.
Brett Scott’s article, “So you want to invent your own currency” makes for fascinating reading.
If money is an object, it must be an enchanted one, charged up with value by a subtle cultural process. Why else would anyone exchange a box of coffee for a rectangle of paper? Shopkeepers accept the paper because they believe that it has abstract value — because, in turn, they believe that others believe it, too. The value is circular, predicated on each person believing that others believe in it. You hand over your money and claim something from the shopkeeper, almost as if the coffee were owed to you. Then they take the claim that was previously yours and use it to claim something from someone else. We all trust each other to value money — but this still means that every monetary transaction is a leap of faith. And faith has to be carefully maintained.
Ctrl-Shift has a very good article that explains why data is the currency that is poised to overshadow money, not for the sellers but for consumers.
A huge amount of data today – the data collected by companies’ web sites, Google search terms, Facebook postings etc – are provided by individuals for free. If something is ‘free’ does that mean it has no economic value?
Another post from Mr. Money Moustache – you might see why he is one of my favourite financial bloggers from this one called “Getting enough & then some“:
…every expense profile is unique, and every person will eventually need to find a way to make expenses and income match when retirement comes – whether retiring at 25 or 85.
The exact same world can seem like an evil or beautiful place, based purely on how you choose to think about it. And paradoxically enough, changing the perspective (and thus the behavior) of enough people can even change the physical reality of the world for the better. That makes “just changing your perspective” into a pretty powerful tool.
I have opinions about what money does to people because I have been lucky enough to have money do it to me. Having money is nice, but not nearly as nice as poor people (which I have also been) imagine it is. But then I wondered how other people deal with money, and I wondered if they all reach this conclusion.
Now, I’m sure I’m right that money doesn’t buy happiness, but when you first get that message, what’s your response? I think perhaps some people go into denial, and insist that it must.
There are some exceptional links in that post – enjoy yourself.
Scott Adams predicts a stock market correction in 2013, & explains his reasoning.
Cornell University law professor Lynn Stout’s new book, The Shareholder Value Myth, examines how the maniacal quest to raise share prices is bad for everyone. Even Jank Welch, who was a proponent has called it “the dumbest idea in the world“. A HBR review of the book here & if you can read a few chapters for free here