Wednesday, October 26, 2005


Wallet Talk Wednesday

I'm sick, stuff to finish too so I'll just throw in a monetary related term.

"Hedonistic Treadmill"
1. People acquiring/earning extra or additional "cash" also increases their spending thus negating the possible investment opportunity effect of the additional income. Instead they purchase things they "always wanted" and the same thing happens evertime they get a raise or a bonus.

2. People tend to let money drive their lives and value material things as the meaning of life. These folks strive to be "rich" because that's what they believe defines them but it nevervstops because they are never satisfied.

3. People think more money will make them happy. Getting more money to buy the newest bag, car, jewelry do provide initial satisfaction but the effect does not last for a long period of time. The material things merely put the bar higher for the next product to buy, they see as more money is suppose to make them happy but this is not the case. Money won't make you happy, comfortable maybe but not happy.



Blogger Saint Eroica said...

the reason why i overspend because i'm not happy... i guess that's my unhealthy outlet. do you know that there is already a medication for overspending people? i can attest to that cuz i'm taking it right now... and it's working! hahahaha!

8:42 AM  

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