2.2.3: Value is more important than price
Using the objectivity of price as a guide to subjective value is all-too-common, but all-too-foolish
This chapter is about how our self-deceptions distort our calculations of what’s important and consequently the wise amount of resources to trade for them. Contorted calculations are showcased in the misdirection provided by price signals. We’ve so far looked at seeing spending as a shaper of our stories and embracing the expression of enough rather than being misled by the myopia of more. Now it’s time to get practical. Money reflects a mindset, but it’s spent on the streets. On the streets, everything has a price, but street value isn’t subjective value. Understanding the distinction between price to the world and value to you, such that it acts like a pair of vision-correcting contact lenses, is perhaps the most crucial ingredient for a successful allocation of your resources.