‘The economic walk’ with reporter, ‘Joo Money,’ from RGO 24… He picked up a pen and began to write to testify for God’s Providence history through economics by becoming a living book of economics. Would you like to walk with the Lord on Heaven’s beautiful, mysterious economic walking trail?
The wisdom to raise the value of the money that you earn
Even for the same amount of money, its value is felt differently depending on the individual. For example, $1000 that is received as a bribe is money that can be spent easily. However, $1000 that has been saved up from a part-time job that pays $5 an hour is ‘money [that is as valuable] as blood,’ and has greater value than $1000 from a bribe. In addition, $10,000 [gained] from installment savings of $300 a month must be much more precious than $10,000 [gained] as a year-end bonus. For this reason, there are people who become rich 20 years later even though they start from the bottom, while there are others who become destitute even after they receive a great inheritance.
Therefore, the wisdom of raising the value of money that is earned is necessary. That is, even if it is money that just easily fell into your hands, you should have the ability to change its value significantly. For example, instead of thinking that inherited money is ‘free money,’ [you have to] believe that it is ‘my father’s blood, sweat, and tears.’ There are many cases of people who are now rich, but who used to live the life of a day laborer. Because they considered the value of every moment [of their hard work] preciously, they were able to succeed.
In the past, when Daum, an internet portal website, changed their email service from a free to paid service, they faced great hardships. Perhaps, the company thought that customers spending a couple of dollars for a service every month was not a big deal. However, when customers had to pay for the service that used to be free, the loss of value that they felt was not just a couple of dollars, instead they strongly felt that they were wasting [a lot of] money. Therefore, the company lost more than expected. The company failed to read the customers’ psychology and underestimated the value of ‘a dollar’ from the customers’ point of view. They just saw the face value of the money.
You should realize the value of the small things in life...
As soon as you disregard the value of a small sum, the money in your hands will disappear in the twinkling of an eye. There is ‘the law of diminishing marginal utility’ in economic theory. It means that as people increase their consumption of a product--while keeping their consumption of other products constant--there is a decline in the marginal utility that people derive from consuming each additional unit of that product. Money is also a sort of product, so as [the amount of] money increases, its value can drop and people can become indifferent to money. For this reason, the world’s richest person, Warren Buffett, emphasized, “Instead of trying to make $100, try to save a dollar.” For instance, if we recognize that one meal could be bought with only $5, $100,000 is a big amount [of money] that can feed us for 30 years. If Lee Kun-hee, the chairman of Samsung Group, had the mentality that “the money it takes to buy one TV is as little as the money it takes to buy one [piece of] gum,” Samsung would already have become bankrupt.
Many times, we spend even a small sum of money without budgeting it so it feels as if money were just slipping out of our wallet. If you have had this kind of experience, even if you have a great amount of money, there is a high possibility that the money [you have] will disappear in a similar way. The water that fills a bathtub full does not have to be drained only through a big hole. The moment when you neglect a small hole, that is when all the water in the bathtub will disappear. Realizing the significance of even a small amount and considering it as valuable is how one can raise the value of money. In the same way, when we consider the value of even a small part of our life as precious, the value of our life will be raised.