The YNAB Podcast

Inherent Value Doesn't Exist

Mar 18, 2024

06:52

Snipd AI

Discussing the concept of inherent and subjective value in financial decision making. Highlighting the subjectivity of value assessment and how it varies based on individual needs and preferences. Emphasizing the ever-changing nature of value and the importance of making trade-offs in financial planning.

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Quick takeaways

Value is not inherent but variable, constantly shifting based on personal circumstances and desires.

Rule 3 in financial planning involves adapting to changing needs and desires, acknowledging the fluctuating nature of value.

Deep dives

Habit of Trading and Financial Decisions

The podcast discusses the importance of making deliberate financial decisions by assigning each dollar a specific purpose, leading to more conscious trading. It emphasizes the need to consider future expenses and readiness to adapt to new information affecting financial choices. By aging money, individuals are encouraged to carefully contemplate their trades to maximize wealth creation and enjoyment.

Exploring the Concept of Value in Financial Decision Making

4min

Exploring the Subjectivity of Value Assessment

2min

Jesse argues that the common refrain of a thing having "inherent value" or "intrinsic value" is not actually a thing. As Jesse explains, value is a moving target, constantly shifting along with our desires and material circumstances. To a starving man, food is worth more than gold. To that same man well-fed, it can be worth little. We see this with our own money -- as our circumstances change, the categories we prioritze shift. Rule 3, roll with the punches, acknowledges the ever-shifting nature of our needs and desires, and challenges us to make trade-offs to materialize those changes in our financial plans. To that end, nothing has an inherent value, but rather a variable value, the only certainty being that it will fluctuate over time.

Beginning Balance Podcast -- the show Jesse mentions has not aired yet, but will be coming soon! In the meantime, check out more of Jesse's musings about money here:

Apple: https://podcasts.apple.com/us/podcast/beginning-balance/id1569423517

Spotify: https://open.spotify.com/show/7APubdzXN2eeeMdNpCLkiy?si=19e8c25d5b104494

Got a question for Jesse? Send him an email:

askjesse@ynab.com

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