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.