Financial Ideas: Occam’s Razor
So what is Occam’s Razor? Well from Wikipedia it is actually the following Latin statement:
entia non sunt multiplicanda praeter necessitatem,
Cool, I have never quoted Latin before, think that is pretty “high brow” for me. What does this actually mean? It’s direct translation is: entities should not be multiplied beyond necessity., interesting. Come again? What does that mean?
Well, my understanding of this is choose the most plausible explanation if you have different ideas about how something happened.
Financially, if I checked my bank account, and saw that I had a balance of ZERO dollars, I could assume that someone had stolen my identity and wiped my account clean, OR I could assume that I overspent and blew all of my money. If my statement shows many purchases of groceries and such, and no HUGE withdrawals at one time, I think it is safe to say, I overspent.
Why don’t you have any money? It might be because of inflation, high taxes, or aliens stealing your money, or maybe it’s because you are spending too much. Which one is the easiest to explain this? Hmmm…. Discuss…. –C8j
Related Articles
- Effective Interest Rate of Service Charges...
- When does my Cellphone Contract End?...
- Weekend Financial Video...
Related posts brought to you by Yet Another Related Posts Plugin.
Leave a Reply