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Maximize your Lifetime utility
What do you want in out of life? Specifically, your life?
What do you want in out of life? Specifically, your life? Simple question with complex hard to find answer.
Let us develop an answer with an economist hat on, for that we need to look at utility theory.
Utility describes the total satisfaction you receive from consuming a good or a service. The satisfaction you get from consuming a meal at your favourite restaurant, or the joy from your favourite sports team winning.
Rational humans would make choices to maximise their utility. This is a choice based on your individual preferences. If your friend’s favourite food is pizza while yours is steak and you go out for pizza at his favourite restaurant. From a nutritional point it will satisfy you both; from a utility perspective, his satisfaction would be higher than yours.
The answer to what do you want out of life should be to consume my life to maximise my lifetime utility.
How your life will look is up to you. For some maximising their life utility would be to found a billion dollar company, for others it would be to work just enough to travel the world and spend time with their family. Both achieve their own personal maximum value out of life.
Neither aim has more value than the other if it is your choice how you are consuming your life.
To empower you to maximise your lifetime utility, we need to start with a quick overview of choices you make while we are still wearing an economist's hat.
Table of Contents
- Traditional View on Asset Classes
- Capital Assets
- Consumable or Transformable
- Store of Value Assets
- Human Capital
- Reference or Additional Material
What do you want in out of life? Specifically, your life?
What do you want in out of life? Specifically, your life? Simple question with complex hard to find answer.
Let us develop an answer with an economist hat on, for that we need to look at utility theory.
Utility describes the total satisfaction you receive from consuming a good or a service. The satisfaction you get from consuming a meal at your favourite restaurant, or the joy from your favourite sports team winning.
Rational humans would make choices to maximise their utility. This is a choice based on your individual preferences. If your friend’s favourite food is pizza while yours is steak and you go out for pizza at his favourite restaurant. From a nutritional point it will satisfy you both; from a utility perspective, his satisfaction would be higher than yours.
The answer to what do you want out of life should be to consume my life to maximise my lifetime utility.
How your life will look is up to you. For some maximising their life utility would be to found a billion dollar company, for others it would be to work just enough to travel the world and spend time with their family. Both achieve their own personal maximum value out of life.
Neither aim has more value than the other if it is your choice how you are consuming your life.
To empower you to maximise your lifetime utility, we need to start with a quick overview of choices you make while we are still wearing an economist's hat.
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