Experiential Knowledge In Personal Finance.
Sometimes last week, I was served a reminder that my rent would be due in 5 months and I'll have to pay a month before the expiration date of the existing rent. Before then, I'd been complaining to the house agents to fix the issues regarding the electricity and the wastage disposal system, but they wouldn't budge.
they've made endless promises, yet close to seven months, they haven't done anything, it leaves me considering the options to leave the house, but having to bear the stress of getting a new house, making a perfect choice, establishing an acceptance with the owners of the house and eventually paying the money involved.
Realtors Brings Experiential Finance To Your Doorstep
I had already paid some agreement and commission fee and if I wasn't considering leaving the house, the money I'd pay was going to be for the rent alone. This took me an endless thoughts of choice and opportunity cost. You see, no one can be completely right when it comes to making the perfect decisions for one's money.
Sometimes we spend money based on what we can presently perceive without being aware of any futuristic occurrences that might hamper the quality of that choice we've made. One thing that reduces the occurrences of previous money mistakes is the capacity that's being given to us by the experiences we've acquired.
Money Experience Are Invaluable
For example, when it comes to renting, this is actually the first time I'm renting a house, now I might have made better decisions regarding other personal finance aspects of life, but when it comes to housing and renting, I am a complete novice. This translates to the fact that there are hundreds of personal finance sectors in our lives, and every day we spend mastering these sectors brings us closer to being the refined personal finance master.
Experience is everything when it comes to decision-making. A person who might understand the onus of real estate might find it difficult to bargain for cheaper rates when it comes to price negotiation for consumable goods and services in the open market.
This is because money principles are not relatable to every sector of personal finance
.......and this isn't taught in schools because it'll be difficult to teach experiential when circumstances and personnel are constantly changing. Everyone learns how to spend money on a daily irrespective of the degrees or knowledge they've amassed.
For example, it's easy for an uneducated person who sells groceries on the streets to cheat a professor of economics, and this is because economic principles are static, they're never meant to be upgradeable, they're just there to guide as a pathway to understanding real-life economics.
Competing In The Transactional Market
This means that the trend of constant change in the market wouldn't succumb to economic principles because knowledge is static and one needs experiential knowledge to compete in a transactional market system where change happens every split second.
In life, making money is solely by the creative methods we've gotten from the static knowledge we've learned from school, while having degrees cannot make people money, sometimes they act as a core to tap from when creating a baseline for making money. In reality, the smartest of people are the ones who strive to build experiential knowledge. The downside is that it requires time and a lot of intentionalities, and perhaps money.
We all hate wasting money, but the truth is that wasting money in the process of achieving a set goal, shouldn't be considered a waste
I know that it can be expensive to make money mistakes especially when we do not have the luxury of adequate resources at our disposal for experimental purposes. While it's possible to reduce the number of money mistakes we can make, due to being more intentional, we might find out that we might end up making bigger mistakes while trying to prevent the smaller mistakes.
There's no shortcut to gaining experience, especially in money and business, and no matter the lessons we theoretically get exposed to, when it comes to the practical aspects of making money decisions, this is when we'll being to understand that there are sentiments and the psychological onus to making money decisions and this is where it's possible to make mistakes.
We can never cut corners to achieve experiential knowledge,
Why?
...... this is because mastery comes with intent and this is something that comes with the right kind of exposure. Money is ubiquitous, its manner and method of spending are endless and this is because our unique experiences about money are endless, and prospectively, they're still going to be endless, provided we showcase ingenuity in every of our spending endeavors.
Losing & Learning
While we do not want to lose before we learn, it's important to understand that we're losing and gaining every day, sometimes we do not notice this because of the balance we tend to achieve, also the pace at which we do this might be dependent on the speed of our learning process.
My experiences with housing, dealing with all kinds of realtors, and spending money in the process, have ensured that I'll never have to make similar mistakes again in the future. Nevertheless, this has come at a great cost, and even if I try to pass this knowledge to someone else, they might get the logic, but still fail to master it because it's experiential knowledge, it's individually meant to be learned to be applicable.
Interested in some more of my works?
Reviewing A $400 Samsung Galaxy A72 (photos Included)
Hive's Scalability & The Compromise Of Commitments
Money: The Consequences Of Making The Right & Wrong Decisions
The Nigerian Economy: Monopolizing Incompetence
The Experiential Process of Understanding Money
A Case Of Theft On Hive: Here's Why Some People Choose Scam.
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