3 ms·
Maybe I am alone but I disagree and agree here. I agree that rich people know how to spend less but one does not become rich on savings alone. It takes the abil
by xphos 6y ago
Maybe I am alone but I disagree and agree here. I agree that rich people know how to spend less but one does not become rich on savings alone. It takes the ability to make value out of nothing whether it be your the lord of feudal lands which you rented out to peasants or online book company that made buying and selling slightly easier. Those people made money because they made value. Not just saved value.
I think this well intentioned advice can actually act as a hindrance to escaping poverty. If you spend a ton of your time walking through the grocery story saving a couple bucks buying cheaper eggs you really lost a lot of your potential earns in that time you spent. Because this is a behavior you will repeat and repeat and the accumulation of this time is a net minus on what you could have saved if you spent that time learning a valuable skill. I think that's why any major uptick in peoples wealth is usually (not always) correlated by education. Places with smarter people tend to have more money because smart people generally speaking know how to create value.
- Joof 6y agoYou missed it. He was saying that amortized costs are cheaper, but poor people can't pay the upfront costs.
- Viliam1234 6y agoYeah, good money-saving tricks are the ones where you only spend a lot of time thinking once, and that helps you switch from one type of auto-pilot to another type of auto-pilot. If you have to think every time, then you pay with your time, and you quickly run out of available time. For example, if you notice that X is equivalent to Y and costs less, it may take some time to notice, but afterwards buying Y is just as simple as buying X, once you develop the new habit. Or if there are two shops in the same distance, and you spend some time researching which one sells more cheaply the stuff you usually buy. (Or a more distant shop, that is so much cheaper that you can afford to pay for having the stuff delivered to your home, and still save money.)
- stainforth 6y agoI don't think the feudal lord made the land or the value from it. And what his son, and the son's son, who inherited the status and the land?