Sharing Daily Discoveries About Personal Finance And Business Topics

Getting Comfortable Around Large Dollar Figures

A funny thing happened today where I was talking to a person in regards to ways in establishing a pricing structure for one’s products or services. The real interesting part was that when he established a base price for his service, he knew that it was a fair market rate and all. When it came to a very large project that required a lot of time and work, he would be reluctant in wanting to fully bill a person for it as anything over say $3000 at once just seems like so much money and that he was uncomfortable in dealing with that much money at once.

When I think about it a bit, I guess this is one of those little things that subconsciously affects you and your ability to deal with money in terms of managing and making it. Similar to speaking in front of a large group of people, if you believe that speaking in-front of three people is a lot then imagine trying to present to an audience of a hundred. Now I guess the main question is just exactly how can one get used to it if they have never say dealt with an incredibly large sum of money in terms of actually owning that much before right?

Like always, you have to start from somewhere. I suppose for myself getting comfortable with large dollar figures was mostly due to me being a money saver starting as a child and people trying to imply to me that a certain figure was a lot when it seemed “normal” to me. Even looking at it from an essential living perspective as well where a house could be say $500,000 just shows me that in comparison $10,000 is nothing to be intimidated about or that it is somehow such a ridiculous number that you won’t ever have that much. In the end, those types of factors personally raise my standards on what is a lot and what is not. The more comfortable you are with it the better it will be I’d say.

2 Comments to Getting Comfortable Around Large Dollar Figures

  • This idea is related to your post “Losing Value On Money By Having Too Much of It”.

    I think a similar idea that perhaps you would be interested in expanding upon is “getting comfortable with risk.”

    I see a lot of people who don’t have any experience investing put a few thousand in the stock market. It just happens that the stock market goes down for a few months and they see their $5000 investment go down to $4500, they freak out, and say “investing isn’t for me.”

    But imagine that you are now earning $300k per year. Clearly, not investing any of your money is a huge mistake. Yet I know quite a few people who got burned by the stock market in the dot-com bubble making 6-figure salaries who don’t invest at all except in safe things like money market and savings accounts.

    joewatch 5/31/2007 6:46 am
  • That’s a very good point. I did make a small post about taking calculated risks before, but that was more in the sense of starting a business.

    Sounds like a good topic to talk about now that you mention it and I’ll definitely make a post about it later on.

    Alan Yu 5/31/2007 4:53 pm

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