Money and mathematics? - Understanding How "

Friday, January 14, 2011

If for any reason, someone gave you a check that nine $ 20 bills in stacks, I think it would be very happy. Would you just as happy if you have a check for $ 181.73? The control is actually worth more than nine $ 20 bills. But how do you look at this control? It 's just a bunch of numbers. And the money is good ... is "real money".

Many people have difficulty looking at a series of figures and represent the thinking of many of these numbers. The same problemoccurs when using the symbol of the dollar, see "$". We love money and what it can do for us, but we are slow, the importance of all the numbers that follow the process a dollar sign. As a result, we are reluctant to find our bank account or the amount of interest we pay for our purchases with credit. We just do the math.

We have difficulty understanding what a dollar is worth to us. The costs of electronic equipment declined in the last decade, due toAdvances in production technology efficiency. Meanwhile, the cost of energy (gas for your car, electricity for the home, etc.) went up and down, making it difficult to see how often you can afford to go visit your parents, or how much it costs truly a month to run your family.

There are two ways to understand "how" when you see the numbers and money in the same paragraph.

Money first walk in hours of work. Do not think about your expensesMoney. Money is still just an abstract number, but working hours are a part of your life. Think about how many hours you spend. If your net pay is $ 500 per week, and you work 40 hours a week, every time you spend $ 100 to spend the revenue from a long day at work. If you spend $ 50 you spend the income from half a day's work. Find out how much the net salary you get from a day's work, then down to net wages per hour worked to break. Every time you thinka purchase, use this information to decide how many hours of work represents the purchase.

If you buy something on credit, the seller will tell you how much interest you pay the first year. Think of that amount, in terms of how we must work to pay interest. How many hours do you need - just be able to buy something "NOW" instead of save and buy later without a credit card? Desire to wait to make fun of buying more than a full week of workduring the next year just to pay interest on the purchase?

Second, since money is a different picture. It's actually quite funny. I bet you already filled a picture in mind than a dollar a glass of 100 pence. Then when you see on the left to put each finger (and thumb) as a glass of pennies. This hand is worth $ 5 Two hands are worth $ 10 with all the money glasses. And if you are walking, you canare $ 20.

If you see this, you will see a big difference between a dollar bill and a twenty-dollar bill. If you do not see how to do this, you might think, is not much difference between a single dollar and twenty. Both are just a piece of paper - to "see" the number of glasses makes cents per invoice.

I can not imagine any of my fingers on a € 20 bill. Then, each hand is $ 100. This leads me through most of my efforts to raise money for a betDaily life. But sometimes you have to understand very large numbers. Here's how (do not laugh this is serious stuff.)

If you take ten of these glasses (100 pence each) and put them in a row on a table, you have ten dollars. Then take another nine lines of glasses next to them. Now you have ten lines of glasses for a total of $ 100. Then, the stack more jars on top of this, so ten layers, each with 100 €. Now you have $ 1,000. Now put the jars in a large box.A box with a value of $ 1,000. (More than 25 of these boxes you can buy a new car.)

How many of these cases you need when you retire? You can trade these boxes for things you need when you work is no longer possible. Therefore, it is important to save some of these boxes for later in life.

If you have hundreds Place one of these boxes in a freight car trucks would be a hundred thousand dollars in one. If you had ten of these wagons on a train,would be one million dollars. This is a train with just a few cents in small glasses in these fields that have been put into these cars, the train was full of form.

Soon to see what we are trying to figure out what to leave for a billion is ... well ... HUGE! These are ten of these trains, one after another, side by side on ten tracks, with ten layers of these ten tracks, with trains every ten. If you have a number that says, "billions" that he is a thousand lines of pennies to hear. It is not onlyThe three zeros, you see, when you add it to one million. A million is 1,000,000, and one billion is 1,000,000,000. And then a trillion sounds simple, even if it is in numbers. But it is a thousand times more than a billion, and we were just talking about how to make a billion more than the mind.

If I spend the money, I find it more effective, in terms of how long I have to work to take home to think about a hundred dollars. If I think in those terms, Isee how the reports I have heard of a government program will cost a billion dollars is actually the same amount of money of twenty people who work at home $ 500 a week every week to take from the time of Christ.

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