Way back in 1983, I was attending the University of Ottawa for the first year of my business degree. Introductory Economics courses, divided broadly between ‘Micro’ (personal money) and ‘Macro’ (global money) Economics, were mandatory and provided a foundation for understanding how money works.
Part I: Micro Economics
Classic microeconomics is now supplemented by the critical field of behavioural economics because guess what? People aren’t widgets! There are many excellent books on how people really behave when making decisions about money. Richard Thaler’s book ‘Misbehaving‘ is a great read covering how behavioural economics came to be and some of its first discoveries. You will no doubt see yourself, and perhaps your clients, in some of the findings.
Part II: Macro economics
Macro economics deals with industrial scale money and an in-depth understanding can take many years of study. In the following video, ‘How the Economic Machine Works‘, Ray Dalio explains the basics of macro economics in easy to understand terms. It will give you an appreciation of the key concepts behind business cycles, booms and busts and government intervention.
Decisions about money are influenced by many factors; some, imprinting on us at an early age, may not necessarily be in keeping with current opportunities and strategies. The team at p|w|m Advisory Group are here to help you sort through how your feelings about money impact your decision making. Let’s start a conversation..
Written by Jim Pelot, B.Comm, CPA, CA; CFO and Co-founder of Podium Prosperity Group and p|w|m Advisory Group.
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