Does Having Money Make Some Decisions Easier?

[Hamza2424]

This issue is also a matter of choices. Being poor or wealthy may entail making simple choices; however, these choices are not necessarily the defining elements of poverty or wealth. The key point is that individuals living in poverty need to exercise greater restraint in their behavior and manage their finances prudently. While wealthy individuals possess the resources to offset excessive spending—thereby enjoying flexibility in their expenditures—poor individuals lack such economic flexibility.

If poor individuals fail to act cautiously in areas where the wealthy can afford financial flexibility, they risk facing financial hardship resulting from overspending.

Poor people can't act cautiously because they don't get to choose. They have to accept whatever offer they get, and that's how they get stuck in a system that is already dirty. You being poor and they being dirty means you don't get to easily go out. They will exploit your financial situation, and they will put more burden on you, knowing you need the job. That's why never show how needy you are at your job. Always stay confident about your financial situation, and never complain to any seniors because if they know you need funds, they can give you more work for little money that won't even justify the work they have taken from you.

But poor people don't get to choose, as a beggar can't decide. This is a statement made by our president even. Anyway, poor people can choose only when they can bear hunger.

[Davidvictorson]

This is where I find the idea interesting. We often tell people to make better financial decisions but how much of that decision making actually depends on having financial freedom in the first place?
Does having money give people an advantage beyond the money itself because they have more options available for them?
And if that is true, could one of the hidden cost of being poor be that you have fewer opportunities to choose the easier option?

I’m curious how other see this. Is financial flexibility itself a form of wealth?

There is a saying that you an individual should use his tongue to count his teeth. This is the same situation.
Naturally if you do not have enough money, your decisions on spending will be based on how much you can spare, what is most urgent,basically the most important stuff.
You know that you are cooked if you spend extravagantly unlike when you have so much money and you immediately that to think that having an original artwork by Picasso for a million dollars is a must if not you will survive the next day just because you can afford to have it.

[davetremblay]

yeah i think this is one of the biggest advantages of having some savings. when you are not forced to solve everything immediately you can wait for a better price, a better job or a better option in general and that alone can save you a lot of money over time

[slapper]

Decisions require options. Options, real options, need cash.

In the labor economics literature there is a term called the reservation wage. The lowest salary you are willing to take a job for. And your reservation wage moves pretty much in tandem with your savings. More of a buffer, higher standards you can hold to. Which implies that the person who has savings will not only have more money. They have more leverage. They can refuse the poisonous employment, wait until the conditions are favorable, and haggle. If he is the one with no savings, he cannot turn it down, if it shows up on Tuesday. Eventually, Tuesday rent does not care about your career goals.



And it only gets better from there. Buying small quantities because that is all the cash allows. An increase in unit price each and every time. Then an overdraft fee when the math does not land. That is insane. An overdraft fee is a punishment for not having enough money.

Is money flexibility wealth? Yes. But that framing still undersells it. It is more like the base for all other decisions. Take it off and you are not making any worse choices. It is simply a matter of which bad outcome you get next.

[uneng]

I’m curious how other see this. Is financial flexibility itself a form of wealth?

I think so. I can relate this to my personal experience. Since the beginning, I had to work for pennies, and that was too time demanding for me, because in order to earn a decent amount of money, I had to work for longer and focus my energies in working. After some years, I got really anxious and easily distracted. Now I have some difficult paying attention to a single thing for long periods of time, because I keep thinking about another tasks I'm responsible for.

Meanwhile, someone earning a better wage don't have to worry about working further, because what he earns is already enough for his needs. So he can spend more time with leisure, entertainment, personal development. He can give himself the right to be calmer and more peaceful.

Definitely it can be considered a form of wealth. Peace of mind, that feeling you have accomplished everything for the day and that things are still going well after all is the wealthiest thing you can have.

[tabas]

This, I don't believe at all. Even if you are few, the opportunities can come at different ways. If you're talented person and you've got a lot of peers and connections despite your situation. I think that more opportunities will still come to you not looking at your financial status.

There’s is a difference between having access to an opportunity and actually being in a position to take advantage of it. Talent, connection and even luck can bring an opportunity to someone who does not have much money but the financial side can still determine what happens next. For instance, two people can get a job in a place. One can afford transport , accommodation and probably the waiting period before the first salary comes in while the other person might have the same talent and even the same opportunity but may have to turn it down simply because he can’t afford the transition.

So maybe money doesn’t necessarily create every opportunity but it can surely give you more room to actually act on one when it comes. Now do you think that’s where financial flexibility really matters or can talent and connections usually overcome that disadvantage?

I agree with that, having money gives the advantage but it's still up to us on how we're going to use that moment having money in getting that opportunity. As for the other which can be said that's less fortunate and have not that much money yet, I've been there and I know how it feels but being in that situation gives us lesser advantage but if you have the determination, you'll make ways for it. And that's why when opportunities come, you don't say that you're in a bad situation and have no money. At least do something in that moment and don't just allow it to slip without doing anything.

[Ayers]

The truth is when you have money,your decision becomes law and people around you will respect it.

During coronavirus pandemic I witnessed several wealthy people die in a state of utter neglect. Despite possessing vast wealth it was not even possible to conduct their funerals properly.

I have seen many such wealthy and corrupt individual in irl. They donate generously. Poor do accept their donation and show them respect to their faces. But behind their back everyone criticize them.

So, you might be able to buy material comfort & convenience with money. But is it possible to purchase genuine respect & love with money? It is not.

[hafiztalha]

This is where I find the idea interesting. We often tell people to make better financial decisions but how much of that decision making actually depends on having financial freedom in the first place?
Does having money give people an advantage beyond the money itself because they have more options available for them?
And if that is true, could one of the hidden cost of being poor be that you have fewer opportunities to choose the easier option?

I’m curious how other see this. Is financial flexibility itself a form of wealth?

Financial flexibility is very important and a form of wealth. If a person has a good amount of savings, he will wait for the right opportunity in the process of job hunting; whereas on the other hand, if person is looking for a job and he does not have enough saving he is living from pay check to pay check then definitely he will accept the first opportunity that he will get. Having financial freedom and flexibility gives you more options and choices being poor costs you a lot.

If someone is poor and he has to fix something today but just because of the lack of finances, he has to delay the process, it is possible that in future it will become a bigger problem and more expensive. But having money does not make person good at making financial decisions some people have a good amount of money but they waste all of it because of their poor financial management

[leonair]

I’m curious how other see this. Is financial flexibility itself a form of wealth?

All the points you mentioned are correct. In fact, those who have money can do better in all aspects. However, money does not come easily to a person, meaning that no one can become rich easily. They have to work hard and sacrifice a lot to get to that position. Those who do not have money may think that a rich person can take any decision very easily and they can get better output from different things in different ways with less cost or less effort. However, I believe that those who have become rich have had a very difficult history in their past. So, one has to build their financial situation from difficult times. Someone who has a good financial situation can earn more money no matter how much money they spend. And yes of course Financial flexibility is a form of wealth.

[Nothingtodo]

If you have money, you can take your time to make any kind of decision and in making a decision, you can definitely implement where you fit yourself. You have money, so you can make your own decision, you can eat at a good restaurant or you can go to a good shopping mall and buy expensive clothes, so in this case, you can make a decision by bringing diversity as you wish.
But if you do not have money, then there will be limitations in your decision-making and you will not be able to make your decision as you wish. With money, you cannot go to a good restaurant to eat or go to a good shopping mall to shop. You will be limited in all aspects.
That is, money will give you financial freedom and after making enough decisions, you can implement whether to accept it or not, but someone who does not have money will fall into a dilemma in every matter.

[Plutomanian]

OP was asking if having money makes some decisions easier and my answer is straight YES. Accumulating or been in possession of money, you will have to make the best choices because you're not under financial pressure and you're in your right state of mind, where you know exactly how to work and enable oneself to become very independent from others.

Making money and making decisions are not the same thing, one would need to be vigorously alert because any slight decisions that's taken without having to carefully second guess it, just know the system have caught up with you. As much as you have money, it also means you need to step up, become very disciplined and follow your principles, always think outside the box in other to be different from others, don't you know that even with your money, you can still end up making poor decisions?

[SPIDERMAN008]

There is no denying that money can solve many problems of people easily. If you have financial capacity and independence, then you can take any decision in a very short time and easily. You will not waste time thinking about many negativity . And to start any business or investment, financial capacity is the first thing you need is money. If you do not have financial capacity, then you will fail at the beginning. And if you have financial capacity, a person can choose correctly by taking time.

For example, if a person does not like his job, he can leave his job and start a business after doing some research. Because even if his salary stops at that time, he will be able to fulfill his responsibilities for those few months from his savings.

And the small emergency problem that you mentioned is really a very important issue. Many people in my country cannot get their treatment properly due to their poor financial condition. Then small medical problems turn into big and difficult diseases with time, which causes them more financial loss later. In this world, if you want to live a proper life in this society, if you want to live according to your own comfort, there is no alternative to money, you must earn money. Everyone should strive to earn money as their main goal in life.

[Renampun]

Not every decision can be solved with just money.. but almost all of your matters can become easier if you have money in your hands.. for example, when someone faces an unexpected problem, having enough money can give them more options, or when they buy more stuff and get discounts + cashback.. that's one of the reasons why someone with financial flexibility can often take advantage of opportunities that most people don't get. That's why it's important for someone to manage their finances wisely to achieve financial stability, so they can take advantage of good opportunities and make decisions without being affected by unnecessary things.

[Etranger]

Meanwhile, someone earning a better wage don't have to worry about working further, because what he earns is already enough for his needs. So he can spend more time with leisure, entertainment, personal development. He can give himself the right to be calmer and more peaceful.

Definitely it can be considered a form of wealth. Peace of mind, that feeling you have accomplished everything for the day and that things are still going well after all is the wealthiest thing you can have.

In my view, the opportunity to afford taking time for rest, hobbies, and stepping away from work arises not just when your job lets you earn enough money, but also when you are confident enough in it not to worry about losing it and having to find at least something on short notice accepting whatever is offered rather than what you actually want. And this situation is extremely rare in our realities, even for those who earn quite well. Because you never know when it might end; you live in hanging state and cannot be sure of what you will have to do in the near future.

[Asuspawer09]

I mean, it might be a mindset problem as well, right? Since rich people usually are smart and think outside the box, just like what you have said, poor people are just buying the smaller quantities and not buying the higher quantities thing where they could probably save a lot of amount, it might be like poor people just don't think it that way they probably aren't thinking of a way to save in the first place, opposite to a rich guy's mindset, where they would surely go for a higher price, but they could save long term.

I personally did experience this because, at first, I wasn't thinking of buying in bulk because in the first place, it was already expensive, but after I experienced a lot of cycles and learned a lot from it, I learned to manage my finances, and this decision started in my mind if it is really going to be save me money if I bought bulk orders. Same income I just need to save a little bit for it, but it doesn't matter since I'm saving money on it. Take note that my income was still the same, so for me, having money doesn't make the decision easier. This is just a mindset thing.

I do make a lot of wrong decisions as well, especially if I know I have the money. Usually, you would probably get lazy on things if you know you could just pay it, it was more like for convenience.

[Cointxz]

In my view, the opportunity to afford taking time for rest, hobbies, and stepping away from work arises not just when your job lets you earn enough money, but also when you are confident enough in it not to worry about losing it and having to find at least something on short notice accepting whatever is offered rather than what you actually want. And this situation is extremely rare in our realities, even for those who earn quite well. Because you never know when it might end; you live in hanging state and cannot be sure of what you will have to do in the near future.

Indeed very for commoner like us but for those rich circle like businessman owner family this shouldn’t be a problem regardless how bad their skills are since their always a company that will accept them through family connection.

This is the harsh reality and it’s true that having enough money will make our decision much easier.

I achieved the point that my company doesn’t want me to quit my job since I handle the vital part on our production and I earn significant amount. My decision making to quit during pandemic is easy since I have enough resources to do business on my own and so far the best decision in my life since I’m earning more than my boss with much less work load. 

[Mpamaegbu]

Sometimes having little money can actually make certain things more expensive. For example someone with enough funds can buy something in bulk when the price is better and someone who is low in funds may have to keep buying smaller quantities at a higher cost.

If you've ever heard that expression that the rich pay less for things (spend less) than the poor, that's the application you've there. And that's right. If it's not in the quantity of what they buy at once at wholesale prices, it's in the quality of durable products and services they get that last longer than low-cost ones which get repeatedly replaced within short periods. I learned this a long time ago as part of basic economics and stuck to it. To be candid, one doesn't have to own that appellation of "rich" or "wealthy" to be able to act that way. It's a mindset thing.

Does having money give people an advantage beyond the money itself because they have more options available for them?

Obvious fact! A lot of people kowtow to wealth. Those who do that will always worship and adore those they think have more than they've. The way a known rich person is treated at an event is always different from the way regular folks are attended to at the same event.

And if that is true, could one of the hidden cost of being poor be that you have fewer opportunities to choose the easier option?

Nope, it's not often about opportunities. It's more about mindset. Poor people are often scared of taking risk, even when opportunities present themselves before them.

[atookz]

Yes, that's a reality many people aren't aware of. When cash is tight, people often have to pay the highest price for everything; it's much more expensive to purchase small quantities compared to bulk; and the interest rates on loans during a crisis are brutal. But poverty isn't just about the lack of money; it's also about having to deal with that additional 'tax' everywhere, simply because you don't have other options.

Same goes for jobs. If a person has some savings, he or she can reject a job with low pay until a better one is available, but if a person has none, he or she must take whatever job is available just to earn some income. Eventually, it is difficult to level up since you are forced to make hasty choices for whatever you can find.

IMO, flexibility is a highly underrated quality, and it is itself a form of wealth. The rich appear to be cool when they have to make decisions because they have a safety buffer if they make a bad choice. Those who just make ends meet can be dealt a severe blow by a single wrong step and must continue to play it safe. In short, money is not only for purchases, it's for time and options and those are what really make the difference in the long run decisions an individual makes.