We all know the saying “money makes the world go round”; however, no one ever mentions the function that gives money its abilities. Math is the magic behind it all. Math doesn’t make a piece of paper worth $100.00, but it gives the holder of that $100.00 bill the ability to purchase a bag of groceries as oppose to just an apple. It also limits the holder of a $1.00 bill to only be able to purchase an apple as oppose to a bag of groceries.
Math is very important in a lot of industries, i.e. science, engineering, insurance, and many others. But all of us aren’t scientists, engineers or actuaries so I wouldn’t classify that level as “life math”. I’m referring to a level of math involved in an area of life that everyone is directly affected by (no exceptions), like personal finances, more specifically purchasing things. Side note, I’d also classify cooking as an area of life involving a level of math that falls into the “life math” category, but that’s not what this blog is about .
I know some of you are thinking “Oooh no, I hate math. I barely graduated because of that crap.” Don’t worry, I’m not going to throw a bunch of numbers and letters at you and ask you to figure it out. But I will ask that you keep an open mind, because unlike a lot of classes I took in school, this one has actually helped me out in life, and I want it to help you out too.
First life math lesson, there are two sides to math:
1. Performing the function
2. Understanding what the answer means to you (This is where the gold is buried! This is also what I will focus on.)
When you understand what the answer means to you, you understand the options (and, hopefully, opportunities) that are available to you. Then you can make moves with a little more confidence.
End of lesson. See, no numbers, no letters.