"Scarcity" Essential For Decisive Monetary Decisions? (Part 1)

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Why do people still make the wrong decisions even when there's scarcity?

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I asked this question in my last publication, part one and here's my assertions towards this; first scarcity might bring greed and how is this so? Sometimes people aren't contend with having to make do with opportunity cost, being in desperation to accomplish more than one need with just very little is the reason why people cut corners looking for smarter ways to outrageously make the little amount they have fulfill so many needs. The truth is, money can't be excessively expandable that is because it can only buy less or more but then it will only reach a particular elasticity limit where it can't fulfill any more need

However, there's the need to understand that money can do very little especially when the volume isn't much and unless it's invested, kept away for returns. In contrary, there are situation where people choose to do too much with money and they end up doing very little this is because they're putting the future into consideration, howbeit in the very wrong manner. Poverty is an inclination that brings limitation of mindset and sometimes when someone who isn't used to having a lot of money is suddenly exposed to a lot of money what eventually happens?

They'll be inclined to dream, they'll hope to actualise bogus dreams, they'll have the most crooked of ambitions and because of this they'll want to do more with the money they've been opportuned to be exposed to. These monies they're exposed to, won't really be from a legitimate or organic means and method of making money, it might be a lottery, millions won from gamble or fraudulent activities or other inorganic ventures that brings unseasoned funds. This factor will eventually play a role on how these people eventually spends these money

One thing you must understand is that Poverty isn't the same as scarcity, I do feel poverty is the last stage of scarcity I might be wrong. While poverty doesn't make people make good decisions, mild or temporary scarcity does. Scarcity sometimes can only be for short term especially if the circumstances that leads to these scarcity isn't emphatic or long-termed because this might eventually lead to poverty. So when someone who's faced excessive poverty comes across a lot of money, their first aim might be to attain maximum pleasure.

Now pleasure isn't bad, it's the ultimate reason of which some people choose to be financially free. However it's important to see that decisiveness in scarcity is important, being exposed to so much might not be. In essence when there's the need to make better monetary decisions, don't aim to excessively expand money beyond its limits else one might end up accomplishing nothing. So it's better to set scale of preferences and use the necessary opportunity costs.