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”
Rather than building more houses to catch skyrocketing real estate prices, investing in transportation infrastructure is more effective. An office worker unable to afford London’s murderous rent moved to Barcelona, Spain, to live in a three-room house. He commuted to low-cost airline Ryanair for about £ 300 less than commuting from London (as of 2017: £ 580 house rent + £ 778 transportation fee = £ 1,358). The transportation environment changes our lives. Thoughts can’t keep up with the change. - Joseph’s “just my thoughts”