This video is based on Marshall Thurber’s theory of Network Science. If you don’t understand the principle of leverage, you work too hard.
Be sure to read this post on Key-Leverage Points.
The Big Mac Index is published by The Economist as an informal and light-hearted way of measuring the purchasing power parity (PPP) between two currencies and provides a rule of thumb to see the relative cost of the same item in different countries.
If you want to buy a Big Mac, look how much it is in Switzerland compared to Egypt. How to use this? Think of retirement. If you are in the US with $1 take it to Egypt and it goes 3.5 times as far ($1 in the US is like $3.5 in Egypt).
(this post has been updated for 2021)
If you were an architect or a doctor, you would know the nomenclature of architecture or medicine. If you are not a doctor, you would pick up some of the terminologies of medicine from your family doctor, the media or friends, however, you wouldn’t have a full command of it unless you were very interested and committed to years of study. Even within the field of medicine, there are specialties that have their own terminologies. Yikes!
One of my favorite subjects at school was economics.
Understanding how the economy works is the foundation of creating your own financial success because we operate in a subset of the world, regional, national and local economies.
Work hard, go to school, get a degree, find a job, save money for retirement, and enjoy your golden years. Many of us are trained, programmed, and conditioned to live this way.
The focus of this advice is on security and hard work. We are told to live below our means and to delay gratification until retirement. But what if we retire without enough resources, medical bills drain our savings, or god forbid we die before we retire? Who wants to work themselves to death?
For many people, the financial crisis has caused a paralyzing amount of fear. A question on many people’s minds is how to cope with this gripping emotional state at a time when action is necessary. Perhaps this is the most relevant conversation as our emotional state is what determines the speed at which we are able to take action. Also, it is our emotional state that determines the accuracy of our perception and the mind’s ability to solve complex problems. At this very moment, the pace of communication and information is accelerating at incomprehensible multiples.