Explain the concept of consumption smoothing.... | Filo
Explain the concept of consumption smoothing.... | Filo
1 year ago
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The concept of consumption smoothing, which involves taking on debt when young to invest in assets that will benefit you later in life. The idea is that this creates a smoothing effect over your lifetime, balancing out the different earning potentials at various stages. We typically start earning little, increase our income as we progress in our careers, peak around age 44, and then plateau. You can tune in here: ▶️ YouTube https://youtu.be/cim7JaiqkQA #UrbanPropertyInvestor #SamSaggers #Podcast
1:29
The concept of consumption smoothing, which involves taking on debt when young to invest in assets that will benefit you later in life. The idea is that this creates a smoothing effect over your lifetime, balancing out the different earning potentials at various stages. We typically start earning little, increase our income as we progress in our careers, peak around age 44, and then plateau. You can tune in here: ▶️ YouTube https://youtu.be/cim7JaiqkQA #UrbanPropertyInvestor #SamSaggers #Podcast
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