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”
As Ernst Gombrich stated, humans do not draw what they see, but rather what they know. They identify differences and interpret them as new based on the patterns embedded in their existing knowledge systems. Therefore, prior knowledge plays a crucial role in accepting new information. Humans do not truly feel or understand what they observe; instead, they feel and perceive only to the extent of their knowledge. - Joseph’s “just my thoughts”