Equivalencies

Dan Gilbert gives an excellent presentation on the premise that our assumptions of what makes us happy are often wrong. He says we are horrible at judging probabilities and values.

He especially emphasizes the human tendency towards relativity and comparison. For example, $100 off a $100,000 car seems far less than $100 off a $200 jacket. Yet, $100 has the same purchasing power.

He argues at the same time that we are unable to put things into context and that we are unable to see past the context of a situation. Spherical arguments are the best.

I guess, as most, I have mixed feelings about his conclusions.

However, it did make me wonder about equivalencies. Personal time and money equivalencies. Most people do it all the time but inconsistently and somewhat selectively. Simply put, thinking of $20 no matter the context as something one really likes to buy; and thinking of fifteen minutes in any situation as an activity one really likes to do.

But of course, we all know time is money.

So that'd suggest finding a personal time to money equivalency as well. For example, $20 is equivalent to one hour which is equivalent to having coffee with a good friend.

Suddenly, $100 off an expensive car seems worth it.