Monday, July 27, 2020

Deafened by Price

Price is not value. Salary is not worth. You are not your job. All markets do is shift things. Supply is the total amount of something that is available. Demand is the total amount of something that is wanted. A higher price attracts more people to make the thing, but also makes it less attractive. All price is, is a signal of what is being produced. Value is something else. Value is the reason we want to be here. The time we want to spend. The contribution we want to make. To do what we personally value, we need to dip into the supply and demand of resources. We need to learn to talk price. But not be defined by it. Building Capital allows you to do that. First, building a buffer means you have the resources for your value creation to not be distracted by the noise of changing prices (job loss, emergencies, lockdowns). Secondly, building an engine allows you to pay the costs of living without those costs making all your decisions for you. If you live hand-to-mouth in a pass-the-parcel economy, the volume of price can be deafening.


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