Thursday, May 14, 2009

Apparently knowledge does equal power (and therefore money)

So I do pretty well in my classes. This probably isn't a surprise to most of you. But doing well in my classes is finally starting to pay off monetarily (well, technically I got college scholarships for my good grades, but I don't count that). For the past month I've been tutoring one of my classmates for both of our theory classes. Now that finals are coming around, another classmate has asked me to do the same for the macro final. And on top of that, I have an opportunity to TA next semester and get paid for it which will hopefully work out.

I don't know what to do with all this unexpected income. Intertemporal utility maximization through consumption says that I will try to make my consumption over multiple periods as uniform as possible through saving and borrowing (if I can know my future income), but when there are exogenous and unexpected increases in income, consumption patterns change.

All this to say I think I'm either going to buy a new desktop or Rock Band II.

The other great thing about this tutoring is that I'm forced to study as I go along. This increases the amount of time I'll actually spend studying a great deal (since otherwise it's pretty close to not-studying), which will hopefully mean I'll do even better on the finals, reinforcing my power, and therefore hopefully my money in the time period t + 1.

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