If there is anything else you enjoy, measure things with numbers and compare numbers. We separate people from percentage according to the amount, credit, GPA, GDP, IQ, etc. In a perfect sense that you may have repeated the number. For example, a person spends twice as well as someone who has IQs have two should be smart twice.
However, all these numbers are the most complicated and unique activity. So it doesn’t make sense to compare two different numbers. While it is possible to compare the cost numbers for people with B, state $ 40,000 and $ 39,000, respectively, and cannot compare someone A, it is impossible to compare someone only spending a $ 20,000. Here a person C can live alternately and make different decisions accordingly. For example, a B may have two cars and here B will be driving a well-effective model, while C will not drive a crazy car. He will probably not be able to drive a car at all to rely on other ways of walking. So it is not possible to make the ends based on comparing numbers.
So how do we compare it?
When two things are measured alternative, one often builds up. No one but the perfect rookie can look at Stock for a price for $ 30 to double as a price price for $ 15, say. No, Ticker price must be measured at a certain amount. Fees for each assignment is the most famous feature of measuring. Suppose the upper EPS shares of $ 4, while the lower price stock has the eps of $ 1. Then the average P / ESAGE 7.5 and 15/1 = 15 in order. All other things are equal, the past is very expensive. Stocks with higher EP / EP rates are called Growth and Stock Stocks with low P / E Status P / E.
When we return to the automotive example, there are a variety of ways to create a measure (ratings appearing to be the main work of stock analysts). We can split with the number of vehicles. This would mean that the person would have an infinity measure. We can separate the gone distance we provide some miles of mile costs or we can break free from transport. One or more of those measurements showed a big difference.
This is interesting, when a person compares the budgets such as Frugal vs Frugal or compared food costs. It is most likely to establish several classes of life. Comparison should be done within class. For example, it does not require the intelligence of finding that all shares of the value is not described as a more expensive than grows. But what about frugal life? Make some people show a different kind of practice. My answer is yes. I have a difficult time using Frugal tips and suggestions from many financial blogs, because they are out of my league. I just can’t afford their advice
At the next post I hope I hope I can improve some ways to distinguish the various financial sets. Until then any proposal is acceptable.
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Wrapped at the beginning of 2008-09-05 07:33:12.
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