ECO-2000 Lecture Notes - Opportunity Cost
Document Summary
Real disposable income per capita has increased continuously (income going up) Income increasing = spending increasing = saving decreasing. Only spend what you have now in your bank account. Use credit cards wisely (due to high interest rates to pay back) The importance of financial security: less conflict in marriage, better health: lower levels of stress, retirement, a greater ability to achieve personal goals. In order to become a millionaire it"s about cultivating wealth, risk taking, and being able to spend efficiently within your own budget. 12 key elements of personal finance: discover your comparative advantage. Discover what you can produce at a lower opportunity cost than other people. Don"t just think about money but also personal satisfaction: be entrepreneurial. Remember, in market economy, people get rich by helping others and discovering better ways of doing things. New products that are highly valued relative to their costs. Entrepreneurial talent involved the ability to discover: cost- reducing production methods.
