Money and attention affect how we experience pain and joy. People tend to feel worse when paying with cash compared to using a card. If a restaurant charges you $1 for a spoonful of food, your enjoyment diminishes because you focus more on the cost than the food itself. To reduce spending, you should make spending feel painful. For example, paying with cash rather than a credit card usually leads to less spending. Automatic debit can become a trap. A study shows electricity use increases by 4% when bills are paid via direct debit. Managing spending involves controlling how much importance you give to it. Ultimately, to reduce expenses, we need to change the system and how it’s structured. - Joseph’s “just my thoughts”
What if you could fulfill your transaction benefits (considerations) in various ways, including fiat money ? Have you ever wondered what the consequences for your business would be if you could fulfill your benefits in ways other than cash? For instance, let’s say you are a shoe manufacturer . To make shoes, you must purchase raw materials like leather and process them into finished products known as shoes. At this time, if you can pay for raw materials with the finished shoes you made instead of fiat currency , you wouldn’t need to take out a loan with interest from the bank. However, the world’s economic system has limited the standard of value exchange to ‘cash,’ commonly referred to as fiat money. We need to understand precisely why banking is so important to entrepreneurs. This is one of the reasons the industry does not surpass finance. After all, money is among the goods whose value is determined by supply and demand . - Joseph’s “just my thoughts”