economicmultipliers_141

Economic Multipliers (141)  
 
Do you know what these are?
They help CREATE wealth in systems.
Windows of opportunity are an economic multiplier.
         
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When the price of gasoline drops, individuals who do a lot of commuting who have the old price factored into their budgets have a unique window of opportunity.  Money that would have been spent on gasoline is freed up for other things.
 
Freed up money can be spent in a lot of ways:
  • more travel
  • more recreation
  • more things … clothes, jewelry, furniture, tools, equipment, etc.
  • less debt … personal, home, student, etc.
  • more car, home and business upgrades … better insulation, new tires, more efficient equipment, etc.
  • more retirement and educational savings and long-term personal investments,
  • more donations, etc.
People who budget (AND can budget because their income allows them to do so) tend to allocate extra money to specific things that have future connections … things that are more likely to create long-term wealth for them, their community and the broader world.
 
People who live day-to-day might not even notice that they have extra money in their pocket … or the money may have been spent last year (medical bills, credit card bills, etc.) so it could never be considered ‘extra.’
 
If you see freed up money as a window of opportunity that shouldn’t just frivolously be spent down, in some form or fashion, you’re helping create economic multipliers.
  • The vacation … may keep you and/or your family healthy.
  • The fun … may keep you sane.
  • The things … may free up time and/or help you make more money.
  • Less debt … helps you free up even more money.
  • Upgrades … can help save time and money while protecting investments.
  • Long-term investments … provide longer-term flexibility.
  • Donations … help keep communities functioning well.
If this window of opportunity belongs to you (I drive very few miles), I hope you take advantage of it.

Create a few extra economic multipliers.

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P.S.  Lower prices can hinder the creation of economic multipliers.  I’ve acquired a few things over the years that seemed too inexpensive not to buy (at ‘sales’).  If I had been selling the items afterward, they may have been good mini-investments.  Not in use (or even enjoyed), their value deteriorates if not adequately maintained (the ‘carrying cost’).  And that does not include the items I managed to purchase expecting to use them more.