One of the key principles of money is ‘opportunity cost.’ It means that when I buy something, I have to give up something else in return. We think we buy because we need something, but we often forget that we could buy something else instead. We rarely consider ‘opportunity cost’ when making a purchase. We do not compare other values against our needs. Buying something means giving up something else, but we often don’t realize it. When we spend money, we should also consider the ‘opportunity cost’; yet, in reality, we aren’t trained to do so. By making a purchase, we bypass the value comparison that may not offer any additional benefits. Maybe it’s because we lack knowledge, or perhaps the idea isn’t appealing. - Joseph’s “just my thoughts”
"Metacognition" refers to thinking about a thought. It is the ability to rethink one's thoughts. So if you are good at metacognition, you can objectify your thoughts. In the "Dunning-Kruger Effect," we can confirm the importance of metacognition. The two scientists proved that the more incompetent people were, the less they perceived their incompetence. Conversely, competent people recognized what they didn't know and were confident about the state of what they did know. All improvement begins with identifying what I don't know. - Joseph’s “just my thoughts”