RE: Time Value of Money

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RE: Time Value of Money

hurtlocker in TradFi • 6 days ago

Clearly not everyone is "A Rational Economic Man" as we've learnt in Econs 101.

There are different schools of thought. Some economists will "die on that hill" and are convinced people do the "right" things subconsciously. I don't think that is true even if you have a high education.

I do think most people are impulsive when it comes to spending money. Some people have a really hard time not spending and I get it. I love spending money hehe

Thanks for the real world example. It makes the conversation way more interesting!

Cheers!

6 days ago in TradFi by hurtlocker

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blitzzzz 6 days ago

Oh I definitely do not think there is any one completely "correct" answer.

Taking everything right now, if there aren't any benefits of a delayed pay out, is the correct move TO ME.

It did come as a surprise that a lot of people saw it as a form of "enforced disciplined savings". In that sense, if their uncontrollable impulses would have squandered it all away, leaving nothing for their end of year financial commitments, I could see why that would be the preferred option instead.

I just find it interesting that a big group of people, even in the same working environment, can come up with very different answers. It helps to open one's mind instead of being stuck in our own echo chambers within our own social groups. 🤔

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hurtlocker 6 days ago

Yea echo chambers are usually pretty bad. Never heard of a good echo chamber 😆

It is interesting they use it as a forced form of savings. Seems risky if they plan to retire one day without being able to control their spend 😅

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