Category: Financial Advice

How Scarcity Turns Rational Economic Thinking on Its Head Modest MoneyLeave a comment

economy

The following is a guest post. If interested in submitting a guest post please read my guest post policy and then contact me.

A poor family on welfare, a busy professional who keeps missing deadlines and a loner who struggles to make friends may share nothing in common at first glance. A closer look, however, shows that each of these people is grappling with not having enough: The family doesn’t have enough money, the professional doesn’t have enough time and the loner doesn’t have enough social connections.

The common condition that they share is scarcity, or the feeling that they don’t have as much as they need. Whenever scarcity becomes a part of life, it causes observable changes to the human brain.

Today’s most progressive economics programs, such as American University’s online MA in Economics, are blending traditional economics with what social scientists call “behavioral economics.” Traditional economics assumes that all people act according to rational self-interest. Scarcity tends to promote non-rational behavior, the type of behavior documented and analyzed by behavioral economists. Essentially, scarcity creates conditions in the brain that limit the way it functions. People who deal with scarcity may not have the capacity to act in…

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This entry was posted in Financial Advice, and tagged , Modest MoneyLeave a comment
By : Adam | 10 Jul 2014
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Modest Money
jobs

9 In-Demand Careers With Salaries Above $60K

By : Adam | 8 Jul 2014

The following is a guest post. If interested in submitting a guest post please read my guest post policy and then contact me. Whether you’re headed off to college for the first time or you’re debating a midlife career switch, it’s always good to know …

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credit-cards

Budgeting Carefully and Selecting the Perfect Credit Card so You Can Travel More

By : Adam | 8 Jul 2014

Budgeting carefully and selecting the Perfect Credit Card so You Can Travel More Some people travel all the time for free, and you may find yourself wondering how they do it. What it requires is careful analysis of your spending and travel patterns and then …

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cash-loans

What To Look For When You Need A Cash Loan

By : Josh Rodriguez | 1 Jul 2014

The following is a guest post about cash loans. If interested in submitting a guest post please read my guest post policy and then contact me. Although most of us do our best to go through life without ever needing a loan, in some cases, …

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family

5 Surefire Ways to Cut Down on Traveling Expenses on Your Next Vacation

By : Adam | 30 Jun 2014

Whether you want a quick, city getaway or you are looking for a couple of weeks in the sun and sand, there are multiple destinations within your price range. Here are five tips to cut the cost of traveling for your next trip!  1. Explore …

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