In innovative business, there is no place for bureaucracy, and decision-making is lightning fast. If you are late, a competitor comes along and steals the show - I mean, money. Hence, traditional forms of governance usually assume numerous layers of management for the coordination and enforcement of processes. This comes with a drawback: many operations can become a bottleneck or a source of corruption. The community, or each member of DAO, reviews, records, and maintains all the tasks, proposals, and updates using a blockchain. However, some experts believe that one can’t achieve fully decentralized governance.

Why DAO?

A minor bug in an application on Ethereum led to the loss of 3.6 million ETH (the equivalent of $70 million at the time). The Ethereum community reacted quickly and regained control: it presented multiple proposals to deal with the exploit. As a result, they froze the tokens leaving the hacker unable to finish his gateway.

Cautionary Tale: Examples of DAO Governance Gone Wrong

<a href="https://aragon.org/">Aragon protocol</a> enables a plug-and-play process of creating and managing decentralized organizations. Communities get a powerful tool to organize themselves around capital assets, currency, or tokens. The latter can increase in value as more people hold and use them to participate in the life of these communities.<a href="https://makerdao.com/en">MakerDAO </a>, governed by MKR stakeholders. on-chain governance and off-chain discussion for general feedback. It is used before on-chain voting to evaluate the overall sentiment about issues affecting the MakerDAO ecosystem and determine a consensus regarding their resolution.

Open Internet Services Managed by Open Tokenized Governance Systems

Open tokenized governance gives a lot of opportunities for developers (DApps creators) and users (token holders). DAO assists developers and entrepreneurs with user communication, regular feature updates, and necessary funding. For early adopters, it can be considered as a long-term investment and source of regular rewards. And for the community in general, it gives a clear understanding of the decision-making process. DAO is the future of organizations. It can make them more secure and give their members a voice. Open tokenized organizations could reduce corruption since all decisions are made by the community, open for review by anyone, and can’t be altered by third parties.

Key Advantages of Open Tokenized Governance

Blockchain is a part of a trustless digital solution.

crypto

Cryptocurrency

moneyandinvestments

Money & Investments

technologyandthefuture

Technology & The Future

Why DAO? : The Problem With Traditional Governance

University friends Kadar and Jendruszak began developing what would become Seon while working on a crypto exchange venture in 2015 that was targeted by a slew of fake accounts. To stop these attacks, they built their own solution to detect false accounts and quash fraudulent transactions. That became Seon, which they launched in 2017.  “For the past couple of years we’ve tripled our revenue year-on-year, and have been onboarding new clients and expanding like crazy into new markets,” says Jendruszak. In the next 12 months, Seon plans to increase its headcount by 150 people in total, doubling its teams in London and Jakarta, adding another 80 to 90 people in its founding location Budapest, and doubling its team in the US.

‘Crazy’ growth

While the US might be their main target for now, gaining market share in US fraud prevention is no easy task. More established competitors in the market include $4.5bn Socure as well as Ravelin, Sift and Riskified. Seon believes it can compete because it’s already conquered the more varied regulatory landscape of Europe — which Kadar says US rivals are struggling to tackle.  Jendruszak won’t confirm specific acquisition targets, but is keen to explain that they will be instrumental to the company’s plans to move beyond know-your-customer (KYC). The company is plotting a move into anti-money laundering products on the consumer side, sanction checking, politically exposed person checking, and is also evaluating how it can begin offering risk analysis and even digital footprinting products to evaluate businesses as well as consumers.

Making it in America

Seon operates on a usage-based pricing model, foregoing integration fees and instead charging customers each month based on how many transactions they make.  It uses machine learning to track data points that clients can customise according to their trouble areas.

As easy as pressing play…

Experts have previously <a href="https://sifted.eu/articles/fraud-neobanks-challenge-fintech-paypal/">told Sifted </a>that there are still multiple ways of undermining the processes that APIs like Seon’s provide. When run online, every single layer of the value chain can be exploited. This means Seon will be stuck in its own game of cat and mouse with fraudsters, too. Kadar acknowledges that this is the inherent, constant battle. “In the case of reported false negatives or positives, the client can inform us via an API or manually,” he says. “We then retrain the algorithm based on this feedback, to cover new patterns and improve on the algorithm.”

Or is it?

Hungarian-founded Seon just picked up $94m from Hopin-backer IVP to fight fintech’s biggest problem: fraud.

entrepreneurship

Entrepreneurship

startup

Startups

Meet the fraud-buster that Revolut, Wise and Sorare trust

The only thing that matters is he is making a million to 2 million a year in passive income he started off with having to use food stamps

Who Is Graham Cochrane

Create original, helpful posts in many different formats to build an audience. The first thing you want is to get your name out there<ol><li>Use this app</li><li>Blog</li><li>Podcast</li></ol>Make Content that People are looking for. Think about what they want to know and then make content. Always make sure you stick to a consistent schedule

Create Content Online #1

<ul><li>Written Content is best for SEO purposes and for making your content more findable</li><li>No Matter what content you create, always I mean always create a CTA something you want them to do</li></ul>

Content Marketing

<ul><li>Continue the relationship by adding even more value</li></ul>Capture There Email Address<ul><li>If they leave without they give you an email address they will never come back</li><li>Eventually you can sell them through email or point them to your website</li></ul>

Your Lead Market #2

<ul><li>Selling to your Email List is far more profitable than selling on your site or anywhere else</li><li>You Control Your Audience</li><li>Website and Social Media Platforms come and go and they drop in popularity </li></ul>

Email Marketing

<ul><li>Do Not Say Join Our Newsletter</li><li>Instead, use a Benefit Driven Lead Magnet</li><li>Show them you have massive value to offer and give it to them for free</li></ul>

How To Maximize Email Opt-In

<ul><li>The Best People To Sell To Are Those Who Just Found you and Are Interested In You Right Now!</li></ul>Write a 5-7 days' worth of Emails for people who just found you<ul><li>Then Teach them or point them to something relevant and make them believe that you are super knowledgeable.</li><li>On the Last 3 Days convert them into a buyer, which would be an no-brainer for them if they liked the previous works you made</li></ul>

#3 Email Audoresponder

<ul><li>They cost little to create, little to maintain, and can sell to anyone and be sold to anyone</li></ul>You can Sell<ul><li>Online Courses</li><li>Websites, and mobile apps</li><li>Membership Sites</li></ul>#1 Reason Products Don't sell is that people build their products in a vacuum without doing any research. The Only way to guarantee people buy is by doing research

Create A Digital Product

Turn what you Know Into A Digital Product Ask Yourself What do you know? What are you good at? What of those things intersect with what people want or need

<ul><li>Look for Frustruations</li><li>Look for Wants and Wishes</li><li>Have a Few Deep Conversations</li></ul>

How to Figure Out What To Create

<ul><li>Remarkable Content</li><li>Valuable Lead Magnets</li><li>Strategic Autoresponder</li><li>Desirable Digital Products</li></ul>

Summary To Create A profitable passive Income 

Feel free to follow me here on Deepstash daily... I mean, daily contentAlways Learn More

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How to Actually make passive Income by someone making a million a year only with passive income

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Career

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Personal Development

business

Business

Free Passive Income Workshop with Graham Cochrane

We usually spend more time on how to figure out our margins based on costs and the financial goals we need to reach and underestimate some seemingly small and unimportant factors that can influence the perception of pricing and cause a potential customer to buy. When choosing between multiple pricing options, psychology and brain functioning can influence how we perceive the price.

Missing factors that  influence pricing

Avoid overly colouring. Colours are typically used to highlight or “add a weight”. When it comes to pricing, weight makes them look less affordable. But there are instances you can use light colours to your advantage.

Avoid colours in the pricing sections

The position of the price tag can make it look even lighter. A recent study showed that the location of a product image on the packaging influences consumers’ perceptions of what they call “visual heaviness”. If prices are placed at the top, potential customers subconsciously think they must be lighter and thus more affordable.

Position the price tag at the top

As a general rule of thumb, try to bring pricing plans together as much as possible. Research shows that customers will consider it as a group and feel like they will be taking advantage of the benefits listed in all pricing plans.

Shorten the distance between the available plans

You should properly name every single pricing plan and ensure that the size of the name is larger than the price. You want your customers to focus on what they will be offered rather than how much it will cost.

Naming your pricing plans

If you use colour to highlight your most expensive plan, it would be the first thing a potential customer will look at. The first reference price for your product should be the highest one. After that, the remaining plans will look much more affordable.

Highlight your most expensive plan

How to price your products more effectively using concepts from psychology and brain functioning. Pricing Techniques for startups

The Psychology of Pricing

Sacred Economics traces the history of money from ancient gift economies to modern capitalism, revealing how the money system has contributed to alienation, competition, and scarcity, destroyed community, and necessitated endless growth. Today, these trends have reached their extreme - but in the wake of their collapse, we may find a great opportunity to transition to a more connected, ecological, and sustainable way of being.

Can we have a different economy?

Charles Eisenstein begins this bold and well written book examining why innovation, labor saving devices, and all of the earth's bounty fail to deliver prosperity to most of the people. “After centuries of technological advances, why do we find ourselves working just as much as ever?” he asks, before observing: “For centuries, futurists have predicted an imminent age of leisure. Why has it never happened? The reason is that, at every opportunity, we have chosen to produce more rather than to work less. We have been helpless to choose otherwise.”

Will the work ever stop?

When everything is subject to money, then the scarcity of money makes everything scarce, including the basis of human life and happiness. Such is the life of the slave—one whose actions are compelled by threat to survival. Perhaps the deepest indication of our slavery is the monetization of time.

Money is created as interest bearing debt. When the interest rate is greater than zero, the debt always exceeds the available money. Servicing the resulting debt requires constant economic growth. Growing the economy requires transforming something that began as a gift from nature or the community into something that can be sold. Nature becomes transformed into commodities and monetized.

Debt Economy

The commons, including land, forests, fresh air, clean water, ocean fisheries, minerals, biodiversity, the genome, and the electromagnetic spectrum, all existed prior to human activities. There is no legitimate right to any private ownership claim to these natural resources. Yet these common assets are continually privatized and monetized to support economic growth. Public goods are privately claimed and sold. Corporations profit at the public’s expense.

Privatization of common assets

“Each tree cut down and made into paper, each idea captured and made into intellectual property, each child who uses video games instead of creating worlds of the imagination, each human relationship turned into a paid service, depletes a bit of the natural, cultural, spiritual, and social commons and converts it into money.”

His solution is an economic system that integrates these seven features:<ol><li>Negative-Interest Currency</li><li>Elimination of Economic Rents, and Compensation for Depletion of the Commons</li><li>Internalization of Social and Environmental Costs</li><li>Economic and Monetary Localization</li><li>The Social Dividend</li><li>Economic Degrowth</li><li>Gift Culture and P2P economics</li></ol>

The solution

“When you hear the phrase “rescue the financial system,” translate it in your mind into “keep the debts on the books.” They are trying to find a way for you (and debtor nations too) to keep paying and for the debt to keep growing.”

“A fundamental premise of this book is that human beings naturally desire to give. We are born into gratitude: the knowledge we have received and the desire to give in turn. Far from nudging reluctant people to give unto others against their lazy impulses, today’s economy pressures us to deny our innate generosity and channel our gifts instead toward the perpetuation of a system that serves almost no one.”

Sacred Economics traces the history of money from ancient gift economies to modern capitalism, revealing how the money system has contributed to alienation, competition, and scarcity, destroyed community, and necessitated endless growth. Today, these trends have reached their extreme - but in the wake of their collapse, we may find great opportunity to transition to a more connected, ecological, and sustainable way of being. This book is about how the money system will have to change - and is already changing - to embody this transition. A broadly integrated synthesis of theory, policy, and practice, Sacred Economics explores avant - garde concepts of the New Economics, including negative - interest currencies, local currencies, resource - based economics, gift economies, and the restoration of the commons. Author Charles Eisenstein also considers the personal dimensions of this transition, speaking to those concerned with ''right livelihood'' and how to live according to their ideals in a world seemingly ruled by money. Tapping into a rich lineage of conventional and unconventional economic thought, Sacred Economics presents a vision that is original yet commonsense, radical yet gentle, and increasingly relevant as the crises of our civilization deepen.

philosophy

Philosophy

Discover the world of business and economics.

economics

Economics

books

Books

Charles Eisenstein

Sacred Economics

Elon Musk is revered as one of history's greatest innovators. But what makes him so brilliant is that his genius is rooted not in an abstract complexity, but in straightforward simplicity. 
He doesn't pursue every idea or innovation that comes to mind. Rather, he fields them using his simple "innovation equation" to determine if they are indeed worth pursuing. It's a crucial step many entrepreneurs overlook, leading them into a blind pursuit of something that might be great, but not great for them.

The Innovation Equation

According to Musk, "What matters is the pace of innovation, access to resources, and raw materials." So, entrepreneurs can quickly and easily gauge whether they have what it takes to turn their wild idea into reality using this simple equation.
It breaks down into three basic questions:
<ul>
<li>How long will it take you to build?</li>
<li>Do you have access to the right resources?</li>
<li>Can you obtain the required raw materials?</li>
</ul>
For any entrepreneur, this is a critical step in the pursuit of a startup. Not only can it save you a great deal of time, money, and energy.

Having What It Takes To Turn Ideas Into Reality

Time matters, though it's not necessarily that you need to be able to build something the fastest. But you do need to be able to innovate in a timely manner.
Especially when those looking to innovate are typically those looking to innovate quickly and stay ahead of the competition. In many instances, it can be something of a race, and with immense competition across just about every field, being at the head of the pack can help you be successful.

Factor 1: Pace of innovation

With the right pace, you also need access to the right resources. This is because resources indicate your ability to innovate. Without them, an idea is simply just an idea, and pursuing something without the necessary resources will cause you to spend more time pursuing resources than innovating.
Ask yourself if you have the resources at hand (or within reach), from the right network to the right people, to be able to innovate the way you plan to.

Factor 2: Access To Resources

You need to have the physical resources, or raw materials, available to be able to innovate. Raw materials are often something that holds startups back in terms of speed.
But trouble sourcing raw materials can also be to the detriment of a startup that depends on them.

Factor 3: Raw Materials

Dig into this collection about Elon Musk to see how his brain works, the future he envisions for the world, and a lot more.

problemsolving

Problem Solving

leadershipandmanagement

Leadership & Management

Inside The Mind of Elon Musk

This simple three-part lesson can save you a great deal of time, money, and energy.

creativity

Creativity

Elon Musk Reveals His Innovation Equation. It's an Easy Way to Gauge If a Business Idea Is Viable

Even though Solana is a relative newcomer to the blockchain space, the protocol has already established itself as one of the most prominent blockchain projects out there. The rising popularity of <a href="https://limechain.tech/blog/top-nft-marketplaces/">NFT marketplaces </a>running on Solana has been among the recent success stories in the blockchain space, while the protocol’s native token SOL has been among the best-performing cryptocurrencies this year and is currently the fifth most valuable token on the market.

Yakovenko and the Solana team found a way to utilize that method in a blockchain-based system by using a similar mechanism to the nLocktime feature that can be found in the original blockchain protocol – Bitcoin. NLocktime allows for postdate transactions using block height instead of timestamps. As it turns out, this is a cryptographically-secure way to show that time has passed. The same principle is used to power Solana’s key innovation – the novel Proof of History algorithm. However, the Solana team has refined the approach by using a much more granular verifiable delay function, a SHA 256 hash chain, which is used to checkpoint the Solana ledger and coordinate consensus. Essentially, this method assigns a cryptographic clock to every transaction.  According to Solana, thanks to this method, the protocol could theoretically reach 710,000 transactions per second, or the theoretical limit of a 1GB centralized network.

What is Solana’s Proof of History?

In addition to Proof of History, Solana utilizes a Proof of Stake algorithm which lets users stake tokens to help secure the Solana network. The protocol uses a delegated stake model, which sees users delegating their tokens to established network validators. This is a shared-risk, shared-reward model that incentivizes token holders to have their tokens delegated for long periods of time. At the same time, the goal of a validator is to get more people to delegate tokens because the delegated stake size determines how often a validator is chosen to write new transactions to the ledger. In addition, similarly to other PoS protocols, Solana employs a slashing mechanism – which removes and destroys tokens from a stake – to penalize malicious behavior, which creates a financial incentive for validators to perform their duties diligently. Validators also charge delegators with a commission fee, which is calculated as a percentage of rewards earned. This fee is meant to cover the costs validators incur when running and maintaining their systems. And since validators always look to attract more deligators, this encourages them to compete on fees  – naturally, validators who offer lower fees for their services are more attractive.

What is Solana’s Proof of Stake?

At the heart of the protocol’s architecture lies the Solana cluster – a set of validators working together to serve client transactions and maintain a ledger. At any given moment, a cluster has a leader, with the role being in rotation among all validators participating in that cluster. The cluster leader is responsible for bundling and timestamping incoming client transactions (which are first received by validators and then relayed to the leader) by utilizing the PoH algorithm. Then the leader pushes them onto the cluster’s ‘data plane’. From there they are validated by the validators and added to the ledger.

Architecture

For starters, smart contracts in Solana are called programs and are stateless. This means that, unlike Ethereum smart contracts which contain both the program logic and state, Solana programs contain only the logic and are deployed on-chain in a ‘read-only’ mode. Once deployed, the programs can be accessed by external accounts, which contain the data related to program interaction (unlike Ethereum accounts, accounts on Solana can store data). This separation of logic and state informs the specific production flow of Solana dApps. Every Solana dApp consists of two parts: a blockchain-based program (or set of programs) and a web application through which users can interact with the blockchain code. The blockchain program is deployed directly to a Solana cluster and users can then send instructions to the program via transactions. A single transaction can contain one or several instructions, which are then executed sequentially and atomically. If all instructions are valid, the program is successfully executed. However, if even a single instruction is invalid, the changes made by the transaction are discarded.

What is Solana’s Programmability?

Every Solana dApp consists of two parts: a blockchain-based program (or set of programs) and a web application through which users can interact with the blockchain code. The blockchain program is deployed directly to a Solana cluster and users can then send instructions to the program via transactions. A single transaction can contain one or several instructions, which are then executed sequentially and atomically. If all instructions are valid, the program is successfully executed. However, if even a single instruction is invalid, the changes made by the transaction are discarded.

Solana’s impressive performance in terms of transaction throughput and cost effectiveness has allowed the protocol to emerge as one of the most prominent players in the DLT space. The recent boom of Solana-based NFTs and the rise of NFT marketplaces like Solanart has shown that the platform is capable of competing in an area where Ethereum is widely viewed as an undisputed leader. Meanwhile, the spectacular rise of the SOL token this year suggests that there are many who believe that Solana has a bright future.

What are Solana’s Ups and downs?

What is Solana? A public blockchain that uses novel consensus and synchronization techniques to achieve high transaction throughput.

What is Solana?

To solve Ethereum’s scalability problems, Buterin and the ETH crew have outlined a network upgrade called Ethereum 2.0, or Eth2. Ethereum 2.0 brings foundation-altering changes to how Ethereum works, but it will take years to implement. Since 2020, Ethereum developers have worked tirelessly on bringing the network’s upgrade to fruition, hoping to make Ethereum faster, more secure and more accessible than ever before.

Ethereum 2.0 marks a significant shift in the network’s consensus algorithm. Instead of Ethereum running an energy-intensive proof-of-work algorithm, the Eth2 upgrade means switching to a proof-of-stake algorithm. A PoS algorithm brings many benefits over a PoW one, adjusting various aspects of a network like scalability, security and accessibility.

Breakdown of Ethereum 2.0

Ethereum’s transition into 2.0 is broken down into various stages.

Transitioning to Ethereum 2.0

Phase 0 of the Ethereum 2.0 upgrade introduces what’s called the Beacon Chain. Launched on December 1, 2020, the Beacon Chain marks the shift to PoS, enabling users to stake (lock away) their Ethereum and become validators. That said, Phase 0 does not affect the main Ethereum blockchain, the Beacon Chain exists alongside Ethereum’s mainnet. However, both the Beacon chain and mainnet will eventually be linked. The objective is to “merge” Mainnet into the Beacon Chain-controlled and coordinated proof-of-stake system.

Phase 0

With Ethereum 2.0, validators and other users can run their own shards, validating transactions and keeping the mainchain from seeing too much congestion. A proof-of-stake consensus method is required for shard networks to enter the Ethereum ecosystem safely. Staking will be introduced on the Beacon Chain, preparing the stage for the shard chain update to come later.

Phase 1

Finally, Phase 2 will see the introduction of Ethereum WebAssembly or eWASM.The eWASM compiles code much faster than the EVM, speeding up processes within the network. Gas works more efficiently via the eWASM, and the eWASM is compatible with various traditional coding languages like C and C++.

Phase 2

Basic transactions on Ethereum aren’t the only factors affected by the network’s lack of scalability. Ethereum’s problems affect <a href="https://cointelegraph.com/nonfungible-tokens-for-beginners/what-are-nfts-and-why-are-they-revolutionizing-the-art-world">nonfungible tokens (NFTs) </a>and aspects of decentralized finance like loaning and borrowing. For example, building and trading NFTs on Ethereum can cost hundreds of dollars in gas fees due to network congestion.

What comes next?

Ethereum has suffered from scalability issues long enough. The time to upgrade is now. The Beacon Chain, Merge and Shard Chains are all part of Ethereum 2.0, which will drastically modify the protocol, making it more scalable and efficient.

Ethereum upgrades: A beginner’s guide to ETH 2.0

<ul><li>Researchers and philosophers identify two types of psychological well-being, which can be summarized as the purposeful and the pleasurable. </li><li>Previous research has already established that, on average, wealthy people experience happier, more meaningful lives. </li><li>A new study asks a more nuanced question: Does meaning predict happiness, regardless of wealth? The results suggest that meaning is less important to happiness for wealthy people. </li><li>More importantly, meaning may be extra important for people without much money.</li></ul>

Key Takeaways

Researchers and philosophers differentiate between two types of psychological wellbeing: eudaimonic (the meaningful, purposeful, or significant) and hedonic (the pleasurable or enjoyable). The latter aligns with what most people term “happiness.” To understand the distinction, imagine working hard on an important life goal. This might feel meaningful, but unpleasant. On the other hand, taking heroin might feel meaningless, but enjoyable.

Defining Meaning and Happiness

Meaning and happiness are rarely totally separate. In general, meaningful experiences make people feel happy, and vice versa. For example, spending time with friends, buying gifts for others, and celebrating life milestones can be both meaningful and enjoyable. Finding meaning in life is therefore usually a good way to boost happiness.

Finding Meaning Boosts Happiness

To the possible disappointment of anyone hoping to indulge in some schadenfreude, prior research establishes that, on average, <a href="https://nobascholar.com/chapters/34/download.pdf">wealthy people experience happier</a> and <a href="https://www.pnas.org/doi/10.1073/pnas.2016976118">more meaningful</a> lives than their lower-income counterparts. This is probably because money can buy both meaning and happiness, so long as you <a href="https://www.sciencedirect.com/science/article/abs/pii/S1057740811000209">spend it in the right way</a> — for instance, by purchasing experiences, time with loved ones, or gifts for others.

Money Does Buy Happiness

On one hand, meaning might be especially important for wealthy people’s happiness, since all of their basic needs are met and they have the resources to pursue grand, meaningful experiences. On the other hand, meaning may be less important, because it is easier for the wealthy to pursue happiness in other ways, like fancy trips, fun cars, and big parties.

The Paradox Of Wealth

The wealthier someone is, the less meaning affects their happiness levels. Importantly, this does not mean that high-income people reported less overall meaning or happiness — their levels were about as high, or even higher, than those of lower-income participants. But the study found that meaning was less important to their happiness.

Study 1: The Americans

Once again, the correlation between meaning and happiness became smaller as wealth increased.This pattern held in 10 out of 11 world regions, including Latin America, Sub-Saharan Africa, the Middle East, and Europe.

Study 2: The World

For wealth status, participants rated their socioeconomic status using the MacArthur social ladder, which asks participants where they believe they stand compared to others considering their money, education, and jobs.  Once again, the higher someone reported being on the socio-economic ladder, the less meaning predicted their happiness.

Study 3: Different Questions

One of the downsides of large survey studies, of course, is that the researchers cannot control every relevant factor that could affect the results. In particular, <a href="https://onlinelibrary.wiley.com/doi/abs/10.1002/(SICI)1520-6793(199701)14:1%3C71::AID-MAR5%3E3.0.CO;2-L">age and religiosity</a> are correlated with meaning and income, making them potential confounding factors. Additionally, income might affect how much meaning and happiness vary — in other words, how much their scores can be expected to spread out. This can affect statistical analyses.

Confounding Factors

In short, data from more than 500,000 people suggest that meaning is less important to happiness for wealthy people. This does not mean that wealthy people are struggling to find meaning: Both their meaning and happiness levels are on par with, or even higher than, their lower-income counterparts.  Perhaps wealthy people simply do not need meaning to be happy. Their resources minimize the stress of meeting daily needs like paying bills or affording food. They can also afford the kinds of purchases that boost happiness, like fun experiences and enjoyable hobbies.

The Findings: The Rich Are Busy Being Rich

The more important takeaway is that meaning may be extra important for <a href="https://journals.sagepub.com/doi/abs/10.1177/0956797613507286">people without much money</a>. Compared to their wealthier counterparts, poor people suffer high rates of <a href="https://onlinelibrary.wiley.com/doi/abs/10.1002/hec.1011">depression and other mental health</a> problems. Incorporating meaning-making into one’s life may be a free way to improve happiness.

Meaning Is A Currency Of The Poor

Philosophers identify two different kinds of happiness. Research finds that having money makes it easier to attain both of them.

Can't buy me meaning? Money cuts a quicker path to happiness

The envelope budgeting money management strategy forces you to accurately budget your expenses each month by only giving you access to a predetermined amount of money, and the goal is to teach you to gain better control of your finances.Though the envelope budgeting method might not be suitable for everybody since it requires only the use of cash, it is still a great exercise to help you form a disciplined budgeting habit. So how does the envelope system work, and is it the right choice for you? Here is what you need to know.

Intro: Restart Your Saving Habit

The envelope system is a <a href="https://mint.intuit.com/blog/budgeting/money-saving-challenge/">money management technique</a> that helps track exactly how much money you have in each budget category for the month by keeping your cash tucked away in physical envelopes. Once you’ve decided how much to budget for each category, you are only allowed to spend the amount of cash available in each envelope. Once you run out of cash, you can’t spend money in that category until the following month.

Defining The Envelope 

1. Create Categories and a BudgetCreate clear categories so that you know exactly where your money is going and how much is being spent.2. Label the EnvelopesAfter deciding which categories to include in your spending budget, you’ll next write the names of the category and the budget amount on each envelope.3. Allocate Funds to Each EnvelopePlace the allocated funds according to your established budget into each envelope.4. Spend WiselyWhen it’s time to go grocery shopping or pay your bills, take funds from the appropriate category or simply carry the envelope with you on the trip.

Start Using the Envelope Budgeting System

Even if you already have a healthy emergency fund, a budget tracker or worksheet will allow you to track how much money you’re earning, investing, and spending each month. Unlike the envelope method, you aren’t restricted to only spending with cash, which allows much more flexibility. Though manually tracking your expenses can take up some time, it’ll also force you to think about potential ways to cut down on your spending and improve your money habits.

Use A Monthly budget Tracker

Looking for a new way to save money? Consider envelope budgeting to help divide your income into different categories and manage spending.

How to Use Envelope Budgeting to Increase Your Savings

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