Increasing Income > Budgeting
Increasing Income > Budgeting
3.22 | “There is a difference between a thing and talking about a thing.” ― Kurt Godël
News and Numbers
Markets this Week:
S&P 500 is up 0.56%
NASDAQ 100 is up 1.73%
Bitcoin-USD is up 1.67%
Ethereum-USD is down 1.43%
Headlines from this Week:
The 2030 World Cup is set to be played in Spain, Portugal, Morocco, as well as, Argentina, Paraguay, and Uruguay.
BMW used Fortnite's virtual gaming worlds to tease its upcoming iX2 EV model.
Google Cloud is now a validator on the Polygon network.
Amazon launches test satellites for planned internet service.
Israel Prime Minister Benjamin netanyahu declares that the country is “at war” after Gaza rockets attack.
Finance
By Vlad Estoup, B.Comm. (Finance); working in Ethereum cybersecurity
Why Increasing Your Income Trumps Budgeting
In the world of personal finance, conventional wisdom often emphasizes the importance of budgeting, cutting expenses, and living within your means. While these practices are undeniably crucial for achieving financial stability, they have one significant limitation: expenses have a ceiling. On the other hand, the potential for increasing your income is virtually limitless.
Budgeting and controlling expenses are undeniably essential components of sound financial planning. They help you manage your current resources efficiently, avoid unnecessary debt, and establish a foundation for saving and investing. However, there's a fundamental limit to how much you can reduce your spending. Once you've cut out the superfluous expenses and optimized your budget, there's often little room for further reductions. You can only tighten your belt so much before it becomes uncomfortable.
In contrast to expenses, your income potential is virtually limitless. While you may have a steady job with a fixed salary, there are numerous ways to supplement your earnings and even strike out on your own as an entrepreneur or freelancer. Here's why focusing on increasing your income should take precedence:
The job market and the world of entrepreneurship offer a plethora of opportunities for you to explore. Whether it's pursuing higher education, learning new skills, networking, or simply looking for higher-paying job opportunities, the potential to increase your income is constantly evolving.
Diversifying your sources of income can significantly boost your financial prospects. Besides your primary job, you have to find ways to get to the next level. If you think a 9-5 will lead you to win financially - you are wrong. Incomes only increase by about a fraction of what assets and other costs of living do every year, and this trend is likely to only get worse. No politician is able to change this - it’s just the nature of our economic system.
Investing in yourself through education, training, or personal development can lead to higher-paying jobs or entrepreneurial success. Continuous learning and self-improvement not only enhance your marketability but can also open doors to more lucrative opportunities.
While budgeting helps you save and preserve your existing wealth, earning more money allows you to create wealth. Building wealth enables you to achieve financial independence, retire comfortably, and secure your financial future.
Inflation erodes the purchasing power of your money over time. Earning more income can help you combat the effects of inflation and maintain your standard of living, even as costs rise.
It's crucial to strike a balance between increasing your income and managing your expenses. Indeed, budgeting and expense control are essential for maintaining financial discipline and ensuring that you don't squander your newfound income. However, the point of this article is to highlight that making more money should not be overlooked in favor of strict penny-pinching.
Ultimately, your financial journey is unique, and your priorities will vary based on your circumstances. For some, focusing on earning more income may require taking calculated risks or making significant career changes. For others, it may involve gradual skill development or entrepreneurial endeavours. The key is to recognize that the potential for increasing your income far exceeds the limitations of budgeting and expense reduction.
This is not financial advice and you should always do your own research before investing in any securities or cryptocurrencies.
Sci-Tech
By Keyann, Software Engineer in Web3
Incompleteness
If a liar were to say, “I am lying”, is that statement true or a false? If the liar is indeed lying, then the liar is telling the truth, which means the liar just lied. But if the liar lied, then they’re telling the truth.
What if Pinocchio were to say, “My nose will grow now”? His nose only grows when he lies. But if it doesn’t grow, then he’s lying and his nose will grow. But if his nose grows, then he’s not lying.
Along with the Mc Escher painting, these creative expressions illustrate paradoxes, something that’s valid but self-contradicting. These paradoxes, known as the “Liar paradox’ and “Pinocchio paradox” respectively, are much more than just logical loops. Beneath the surface of these philosophical puzzles lies a lesson that revolutionized math and the world as we know it.
To understand how, we need to briefly go through the rich history of how mathematical ideas evolved, beginning with the ancient Greeks.
The ancient Greeks, particularly Euclid, presented the world with a set of simple rules or 'axioms' to describe geometry. Axioms are self-evident statement of truth. One of the most famous of these axioms is the idea that the shortest distance between two points is a straight line. For centuries, these axioms served as the foundation for geometry and were accepted without question.
But, as time went on, new mathematical ideas emerged that required more complex foundations. Enter David Hilbert, a mathematician from the late 19th and early 20th centuries. Hilbert introduced the concept of a 'Hilbert space', a vast mathematical playground where abstract concepts could be explored.
With these new ideas, Hilbert posed a challenge to mathematicians: Could they prove that all of mathematics, based on a set of axioms, was both complete (meaning every statement can either be proven true or false) and consistent (meaning no contradictions can be found)?
Gödel's Revelation:
In the 20th century, the mathematician Kurt Gödel addressed Hilbert's challenge and introduced a profound twist. He ingeniously crafted a statement akin to the paradoxes above: "This statement has no proof in number theory." This self-referential proposition was a conundrum: if true, it's unprovable; if false, it contradicts itself. Through this, Gödel demonstrated that math cannot be both complete (where every statement can be proven) and consistent (without contradictions). This finding is at the heart of Gödel's Incompleteness Theorems.
Imagine a programmed robot, designed to answer any question. Pose to it, "Will you never say 'yes' to this?" It's trapped in a paradox, much like Gödel's mathematical statement. Some questions just can't be answered without causing a contradiction.
The Impact:
Gödel's theorems disrupted the foundation of mathematics. They debunked the dream of a perfect, all-encompassing rulebook for math. Yet, rather than an end, this sparked new beginnings. Gödel opened doors to deeper exploration in math and philosophy, prompting questions about the nature of truth and the limits of knowledge.
From Euclid's foundational axioms to Hilbert's advanced spaces, and then to Gödel's groundbreaking paradox, we see the evolving journey of mathematical thought.
Conclusion:
Gödel's work shows that uncertainties exist even in the precise world of mathematics. Just as life has its ambiguities, so do numbers and logic. It's within these gray areas that our thirst for understanding continues to grow.
Paradigm Shift
By Roman Kuittinen-Dhaoui, BBA, CPHR Candidate; working in Human Resources
Lenses for Friendship
I saw a post by Alex Hormozi where he shared his two simple lenses for friendship which were as follows:
Do they genuinely root for you when you win?
Are they truly happy when you achieve something significant or are they jealous? Your success doesn’t diminish their value or accomplishments. Are they wishing you more success or making it a competition? For example, you tell them that you just bought a car, do they respond by telling you that they just bought a house, or, do they celebrate in your happiness with you?
Do they make you better?
Do they inspire personal growth, self-improvement, and well-being? These friends encourage you to step out of your comfort zone, take on new challenges, and push your boundaries. They believe in your potential and inspire you to become the best version of yourself. True friends don't just applaud your strengths but are also willing to provide constructive criticism when needed. They offer honest feedback with your best interests at heart, helping you identify areas for improvement. Friends who make you better hold you accountable for your actions and decisions. They help you stay on track with your goals and commitments, ensuring that you remain focused and disciplined. Interacting with such friends often leads to personal and intellectual growth. They might introduce you to new ideas, perspectives, or experiences that broaden your horizons.
These two lenses for friendship by Alex Hormozi highlight the importance of having friends who genuinely support your success and contribute to your personal growth. Friendships that meet these criteria are likely to be fulfilling, nourishing, and enduring, as they create a positive and empowering environment in which both you and your friends can thrive.
TLDR:
If you have a friend or friends that meets one of these criteria, you’re lucky.
If you have a friend or friends that meets both of these criteria, you’re blessed.
(Head)Space
By Vlad
Compounding
People who actively engage in tasks and activities often experience exponential growth due to a combination of factors. First, they continually develop and refine their skills, which allows them to tackle increasingly challenging opportunities. Second, active engagement leads to more extensive networking, opening doors to partnerships and new experiences. Additionally, momentum builds as each accomplishment provides motivation for the next, creating a positive feedback loop. Failures along the way become valuable learning experiences, contributing to rapid improvement. This continuous, goal-oriented approach, optimized resource allocation, creativity, and the compounding effect of efforts all contribute to the exponential progress of those who do more.
In essence, the cumulative effects of skill development, networking, momentum, learning from failure, and the compound effect drive the exponential growth of proactive individuals. Their belief in their ability to succeed fosters a positive feedback loop, while innovation and efficient resource allocation further accelerate their advancement. Although each person's journey is unique, these factors often play a crucial role in propelling those who actively engage in their pursuits toward exponential success.
Company of the Week
Thinkific
Thinkific Labs Inc. (THNC.TO) engages in the development, marketing, and support management of cloud-based platform in Canada, the United States, and internationally. The company's platform enables entrepreneurs and established businesses to create, market, sell, and deliver online courses and other learning products. The company was incorporated in 2012 and is headquartered in Vancouver, Canada.
Written by: Vlad Estoup, Keyann Al-Kheder, and Roman Kuittinen-Dhaoui