THE EASIEST WAY TO UNDERSTAND FINANCES

 

 

Explained with eggs

This is the easiest way to understand how finances work imagine you have three hens and each one lays an egg a day those three eggs is all you can consume so on Monday you have three eggs on Tuesday three eggs on Wednesday three eggs and so on maybe one day you eat scrambled eggs another day you eat hard-boiled eggs until one day you decide you don't want to live like that you want anymore. something different you want to make a cake of 10 eggs but it does not have 10 eggs and you know that if you keep eating you the 3 eggs a day you can never accumulate the 10 eggs you need also do not want to wait you want to eat the cake now luckily near your house there is a farm where they give eggs fixed the credit the farmer tells you that if you want 10 eggs today you will have to return 12 eggs in The future but this does not discourage you The future seems distant What do you decide to take the 10 eggs and today enjoy the rich cake that you dreamed so much and you do it and that day you feel happy like a worm finally you have what you wanted everything continues its march until one day the farmer's people come to charge you the eggs you took trusted. Ask for an egg every week an egg does not seem like much Truth however while before you ate three eggs a day now one day a week you must settle for only two if thirteen seemed little imagine two now you are unhappy every time the egg collector comes the ten-egg cake no longer gives you happiness you ate it in a few days but you will pay for the next twelve weeks if today you have three hens and consume four eggs tomorrow You will have to survive only with two meanwhile your neighbor who also has three hens for a while eat only two eggs is expected to accumulate about 20 eggs to sell them and buy another hen thanks to this soon has 4 eggs a day is the same with money investors know that first they need to sacrifice today's money to have more tomorrow as you surely guessed the chickens represent the source of income employment the business etc. the eggs represent the money the farm represents the bank and the cake of 10 eggs represents anything we want to have but that currently we do not have enough to pay for it a car a bigger TV vacation you decide if you are okay with three eggs a day with your current.

Income then you do not need to change something but if you want a cake you have to take action you can lend the eggs money Someone else enjoy the present and suffer in the future you can temporarily reduce your egg consumption money to accumulate enough and buy the thing you want to sacrifice the present to have something in the future is difficult especially if you earn little you can get more chickens more sources of income to improve your lifestyle in the future maybe this is the best option so it's worth it. consider our possibilities.

 

 

 

 

In conclusion:

As we can see in the previous explanation he tells us that if we want something we must strive to achieve it, not go to the easy, since in the end in the future it will cost us more.

If we want to invest in something that we like, we must first think about the benefits and the counter-benefits in order to make a good investment and in the end we do not regret it.