Value– economic value
Life is all about value. Think about it. If you don't know what things are worth, how can you make any good decisions? And making good decisions is what makes you successful.
While much is said about value at this site, let's cut to the bone. Most of us know something that has value from junk. Value is the usefulness or function or appeal of something. Everything has value. And if it doesn't cost much or take much effort it has even more value. Value is a human judgement about the worth of resources. One person's value is another person' junk.
An expensive cell phone with limited features that drops calls is said to have low value. (Who needs it? And why did I buy it?) An inexpensive cell phone with many features and that never drops calls is said to have high value. Something that one loves, like a pet or a cell phone has high (emotional) value to the owner, but less value to others. So, the value of each resource is different for everyone.
As seen at the right, the value of things increase as its function, usefulness and/or positive psychological effect increases. And value decreases as its cost and/or negatives increase. And, of course, value decreases as function, usefulness and emotional effect decreases– and cost and pain-in-the-butt increases.
We use this concept of value when we make decisions– and we make decisions all the time. ("What's best to do?") We usually weigh the functional, the positives and the likes against the costs, negatives and dislikes.
Value is also exchanged for money. The price, the amount paid in the exchange, is what buyer and seller agree the value is worth. Since we all have different ideas about value, it makes buying and selling both interesting, tricky and possibly dangerous. And this is why value is so very important. (Have you heard the red paper clip story where a man traded a paper clip for a house?)
If you know value, you can benefit from your exchanges. But you must have something to exchange. That's why increasing your own personal value should be important to you.
Value– perhaps the most important concept in practical economics is at the heart of BUX play. You are constantly making value decisions– some easy, some not so easy and some pull-your-hair-out difficult. Experience it. Play with it. Experiment with it. Practice learning, recognizing, creating and building it. Know when and where to sell it. Without value, life could be very challenging. Think about developing value doing something you like and do best. It's a process.