How Many Hotdogs Can You Eat?
Four hotdogs, chips, and a milkshake in a single sitting? Pick a meal you plan to eat today and multiply it by 10. Most people would never consume that much food in a single sitting. Couldn’t physically handle it, and the money spent to finish it is no longer available to sustain life in the near future. When it comes to food, the norm is to stop when sated. The satiation effect explains a human reaction helpful to understanding why individuals save and borrow. The effect is part of the spine of sound financial planning. Enjoy this short-story post on the topic.
To mix the metaphors, serial installment 4 builds the six-pack abs underlying economics-based financial planning. Mostly words in this installment, readers get to play with a model next week.
Today: How economists measure happiness and how it forms the basis for a standard of living objective for personal finance decision-making
Excerpt:
