mental accounting
This is the habit of treating money differently depending on where it came from or what you plan to use it for. For example, people may spend a tax refund freely but guard money in a savings jar, even though a dollar is worth the same either way.
Where it is explained in full
Cash secured puts and the wheel. Selling a put with cash set aside is a paid promise to buy stock at a price you chose. The wheel chains that promise to a covered call. Both deserve a full accounting.
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Words beside it
- accounting software
This is a program that records the money moving through a business, such as sales, bills, and payments. It sorts each item into a category and builds reports showing what the business earned and spent.
- supplemental security income
A government program that sends monthly payments to people with disabilities or very low incomes to help cover basic needs like food and housing.
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