Friday, November 9, 2012

A Lesson From Computer Games

I'm not much a fan of computer games. They suck me in and spit me out leaving me a little bit older with a little bit less to show for it. And they're addicting for me. As in I honestly believe playing them causes my brain to create Dopamine or something in excessive amounts, causing me to have a withdrawal later and need another hit. Kinda scary when I write it out so bluntly.

This is not to say, however, that nothing can be learned from video or computer games*. I've noticed that games in which there is some aspect of wealth accumulation, be it gold, shiney, money, amulets, technology advancement points, or whatever else, there is a common trend that is true to life. It is this:

1) Spend it with excruciating care early on. Only use what is utterly required to survive.

2) Seek not for the lump sum bonuses, but seek for the bonuses that increase the rate of return throughout the entire rest of the game

3) Figure out the "threshold" amount. Once you obtain this amount, you will have sufficient residual wealth to win the game as long as you never spend below it

4 - Bonus) Never spend below the "threshold + 1" mark (+ 1 meaning one iteration of "return" on your wealth) and you will have more wealth than you will even want to consume

These same steps can, I believe, be applied to our real financial lives.

*Yes, computer games can teach, like the lesson mentioned in this post, yet I suspect that knowledge could be more appropriately obtained through other means.

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