Link for a good article on Money Illusion: http://psych.princeton.edu/psychology/research/shafir/pubs/Money%20Illusion.pdf
Money Illusion ---> The tendency to think in terms of NOMINAL, rather than REAL monetary values.
The layman, the common man who is not educated in Finance may not be aware aware / or may not always consider that a certain amount, say $10 in the future is not the same as $10 today. This ignorance or lack of perception is the behind concept of money illusion.
Is your salary keeping pace with inflation? Unless you have a magic trick like this to make money grow, your income better keep up with inflation :)
This blog documents my MBA student life at Ryerson University, Canada (2010-2012). It was an attempt to demystify the MBA experience, help understand MBA topics & encourage MBA wannabes. I have a Pre-MBA blog about B-School application process (and a few other blogs) as well. I used to blog actively in the past and interact with readers regularly, but life got very busy after my MBA. Good luck. Take care. Cheers! Gerry.
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