Extrapolate - an analysis technique

Extrapolate means to make some assumptions about an unknown situation based on limited knowledge of similar or related situations. It's a type of educated guess, and it's way better than a wild guess. You really don't know what's going to happen, but by looking at previous similar events and related events, you can project what might happen with some degree of accuracy.

Use this analysis technique to help you gather insights about the world around you.

It will help you be a more responsible individual. As you implement your approach to frugal living, you'll have many decisions to make. The better you are at basic analysis of situations, the more successful you will be at anything you are engaged in.

Here is an example of how one can use this analysis technique to predict the intentions of another. If you saw the movie Slumdog Millionaire, then you saw this analysis technique in action. When Jamal first appeared on the "Who wants to be a Millionaire" television program, the host of the show treated him poorly, made fun of him, and held him in contempt.

Jamal knew that the game show host wasn't "on his side" at all. During the second to last question, Jamal used his 50/50 to narrow down the right answer to selection B or D.

There was a break during this portion of the show, and both Jamal and the host found themselves in the bathroom where Jamal admitted that he didn't know the correct answer. The host wrote the letter "B" on the mirror in the hopes that Jamal would select this as his "final" answer.

Based on his previous rough treatment, Jamal recognized that the host wouldn't be doing him any favors. Instead, he would be trying to lead him to answer incorrectly and thus lose the game. After all, the host wasn't pleased that a "slumdog" was on his show.

Jamal picked "D" as his answer and won that round. He won it because he was able to extrapolate that the host would mislead him because that behavior was consistent with his dislike for him.

It could have been that the host had "turned over a new leaf" and was trying to make it up to Jamal, but certainly our game show contestant was still stinging from his poor treatment at the hands of the host, and he recognized the outcome that was in the best interest of the host - having Jamal fail.

Even though the host had never misled Jamal before, his poor treatment of the contestant was enough to lead Jamal to believe that he would take the opportunity to mislead him to get him off the show.

No one can predict the future, but we certainly can have expectations about what is ahead. Try to extrapolate future events by looking at current and past events that are similar or related. If you get good at this analysis technique, it will serve you well in your lifetime of frugal living.

Done with Extrapolate, take me back to Individual Responsibility

Done with Extrapolate, take me back to Managing Money

There certainly is a broad scope of topics here at Frugal Living Freedom. When you think about it, money permeates so very many activities in our lives, therefore, being frugal encompasses a wide range of interests, from being employed to taking a vacation, and just about everything in between. Enjoy the variety, pick up some new ideas, and start making frugality a part of your signature.

I'm a big proponent of being debt-free, and I mean entirely debt-free - no mortgage payment. It's not essential for financial freedom, but you'll love the feeling once you get there. If you didn't have a rent or mortgage payment, how much more could you do for yourself with your current level of income? I suspect plenty.

If you ever hope to see an abundance of wealth, you need to plug the hole in your boat. The wealthy don't necessarily make lots of money, instead, they know how to hang onto what they make, and make it work for them.