Analogy of a Frog and Personal Finance

Interestingly, If you were to pick a frog and put it into shallow hot boiled water, the frog will instantly leaped from the pot and jump out to safety. However, if you wereitto pick up the same frog a little later and then put into a shallow cold water, the frog will not react to it and will be comfortably be sitting there as it is a cold blooded animal. As you may know, But, if you were to do experiments by heating up the cold pot with a very slow fire with the frog still sitting in it. The water as a matter of fact will eventually rise up to 100 degrees. As any cold-blooded animal, the frog’s body rising adapt to the will heat and will adjust its blood temperature to the environment. Eventually, when the water reaches boiling point, the frog will die as a consequence of adapting itself to the environment without even realizing it.

So, what’s personal financing more than ever have to do with the frog narrative? People who started off their career start just like shallow frog in the the cold water. The money they received by the end of the month is enough to get by since their requirement for life is low. But, as your career and salary increase so does your desires and lifestyles. In fact, As you initiate to acquire your first car, acquire your first house, started to apply credit cards, your lifestyle will alter incrementally but not as quick as your salary increase. As same with the frog, you will not that notice you have a debt problem since the increment is not sudden. And when you realize it, it is too late and you will end up with a huge pile of debt.

Many people realized as the company their working with starts to prosper, the owner of the enterprise is the one who eventually benefits and the employees usually are not much richer compared to the first day theythatstarted working there. It is your responsibility to make sure that you will from another perspective up rich and not endsomebody else. The reality is that the boss is not responsible to make you rich, but their responsibility is just to make sure your got you paycheck by the end of the month. It’s worth noting that The education system was shaped to produce workers and not entrepreneurs. There are many paths for us to achieve financial freedom, but the majority of us choose the path of position security. How can we blame them?