thinking from a pov causes that lens to stay static. e.g. if u think in dollars, a rising dollar will be experienced as everything else getting cheaper since a dollar cannot by definition be worth more than itself
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similarly, thinking from the pov of a “self” causes the sense of self to stay static. progress feels non-existent unless it is explicitly tracked or reflected through the eyes of another “omg u’ve changed so much”
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thinking in dollars is likely a disadvantage for investing the same way thinking in notes (vs scales or chords) is a disadvantage in playing piano. it is too low level of an abstraction
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a denominator is chosen because it allows for useful comparison. it’s stable relative to whatever is being compared the issue is when apples and steaks are compared to houses and cars
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e.g. a house with property tax shouldn’t be thought of as denominated in dollars but in terms of percentage of cash flow or asset appreciation
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this is actually how housing prices are determined by the free market. each buyer(s) figures out a monthly payment based on interest that they’re willing to pay and then the loan calculation pumps out the price. it doesn’t START from price
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denominating the house in dollars doesn’t work b/c the price of getting it is actually ownership over some cash flow. like working at a tech company. learning piano w/o acknowledging chords or scales is a big disadvantage
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e.g. “how should i save money” or “what to invest in” are the wrong questions to ask. with the right denominator the question becomes “what skills do i need?” or “what are the hot new opportunities?”
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