Happiness happens when the results you get is far better than the results you expected. Therefore when a person invests Rs. 1000 in the equity market and in one month it goes to say Rs. 1100 he is very happy.

However if he does a SIP of Rs. 1000 in a mutual fund and it becomes Rs. 14,000 at the end of the year, he is not very happy. He put in Rs. 12,000 (well that is what he thinks if he does not understand PV and FV) – and that has become ONLY 14,000 over one year.

This of course is innumeracy of not being able to calculate the IRR – and not just lack of happiness.

So mathematically speaking

Happiness = Results – Expectation…. now in case you agree, we go to the next? 

So why is gen next not happy or satisfied with what they get? Simply because their Expectation is far, far greater than the realities….so read on

http://www.waitbutwhy.com/2013/09/why-generation-y-yuppies-are-unhappy.html?m=1

 

 

Related Articles:

Post Footer automatically generated by Add Post Footer Plugin for wordpress.

  1. This seems to be a closed loop.
    with the first trigger point in expectations.

    Then the final conclusion “we can be happy , by giving more results than our expectations”,

    I wonder whether this is possible all the times!

  2. Investing 10000 & seeing it to become 9000 will made you feel sad., but investing 1000 in SIP & seeing the 12000 becoming 10000 will make you frustated 🙂

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>