The Mysteries of Money
Here, have some highlights:
Highlights
Inertia in business comes from predictable cash flows. That’s not a particularly original thought, but you get to new insights once you start thinking about the age of a cash flow.
Let’s get two misconceptions out of the way. Money as a conceptual or theoretical construct (academic debates about fiat vs. gold-backed) or as a technical definition (the M0, M1… stuff) is mostly irrelevant to managing money at any level from big bailouts to a kid with a weekly allowance. So is advanced mathematics (in fact an interest in mathematics makes it harder to be interested in money, because money-math is among the dullest kind). You don’t need more than basic arithmetic and some trivial algebra to “get” money mathematically. Even all the statistics and optimization doesn’t get you to truly interesting math.
What trips us up is money metaphors. I began to realize this when I noticed that I was relating very differently to the completely trivial amounts of money this blog makes, compared to my paycheck.
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