Jayson Lowe explains why we spend everything we earn using Parkinson's Law: expenses expand to match income. He outlines three unseen truths about money, including that most purchases are financed rather than paid outright, and shows how external parties often end up controlling our finances.
Some of the key areas from Nelson's book that I picked from are ones that he focuses about. So before we talk about solutions, it's really important that we kind of get crystal clear on the problem. You know, so many people are just busy earning money and they don't focus on where their money is flowing. So some of the parts in the book that I want to focus on is kind of that unseen truth about money. You know, the fact that we spend almost everything we make, that we finance everything we buy, which may sound funny to some of you, but bear with us, and that someone else controls your money. And I'm also going to talk about something that maybe you haven't realized yet. So when I talk about when we spend what we make, you know, when I talk about Parkinson's Law and Nelson in his book, he really— originally it wasn't about money. It was related to work and the timelines that are given to complete it. So, the idea that work expands to meet the time allowed for its completion. So, what that means is if a job takes, say, 2 days to do, but is scheduled for 2 weeks, when do you think it's going to get finished? If you said 2 weeks, you're probably right. Why is that? Well, Nelson would argue that it's human nature.
