Some of the laws of economics are pretty simple to understand.
It can get VERY complicated, but it doesn’t have to.
And on a personal level, economics is inseparable from basic human behavior.
The crux of interest rates, a pretty complex subject, has to do with how humans think about desires and time.
We’d rather have something NOW than later, all else equal.
Because we want it more NOW than later, something “later” has to be worth MORE if we were to not get it now.
In terms of dollars and cents, we’d like to have a hundred bucks today, OR if we had to wait a week, we might accept a hundred a ten bucks.
This is the reason why we have things like interest rates.
Why when you borrow money, you have to give back more than what you got.
Theoretically, the person loaning you the money wants to keep his money.
And the only way he’ll loan it to you is you give him back slightly MORE in the future.
In a sense, the difference is the “cost” of money.
Like you have to pay ten bucks to rent somebody’s money for a year.
Of course, when you involve central banks and debt based money, it gets pretty complicated.
But the idea of thinking about things in the FUTURE is very compelling.
Things that we don’t have, but we want.
Unfortunately, we rarely get an opportunity to talk about those things.
Even if you were hanging out with your friends, and started talking about your ideal future, they wouldn’t support you a hundred percent.
Even family members tend to get a bit sketchy when talking about ideal futures.
Most people have a very vague idea of their ideal future.
But at the same time they have a ton of anxiety.
This is why few people ever set real goals.
The idea of achieving a goal is pretty cool.
But the idea of trying and failing is pretty real, so people tend to not think about it.
Which is why if YOU started to talk about your ideal future, they would start to feel uneasy.
A lot of times, this is where all their judgement comes from.
When they start telling you WHY you shouldn’t dream big like that.
But here’s the thing.
You can flip the switch.
Meaning don’t talk about YOUR ideal future, talk about theirs.
Carefully elicit it, and get them talking about the absolute BEST thing they hope will happen.
Most people don’t even think in such specific terms about their own future.
Let alone be asked about it by somebody else.
Why do this?
Because after that simple conversation with you, they will see YOU as different from every other human on Earth.
And when they think of you, they’ll subconsciously associate their biggest dreams and fantasies.
Think that would be useful?