Economic Multipliers (141)
Do you know what these are?
They help CREATE wealth in systems.
Windows of opportunity are an economic multiplier.
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 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.
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.