Posts by Ignacio Mas and John Gitau
Poor people´s financial concerns revolve mainly around making money appear as recurrent expenses come due, and when one-off needs and emergencies arise, says Ignacio Mas. They do this primarily through tactics he calls liquidity farming and income shaping. Mas and John Gitau illustrate the relationship between these two concepts in this intriguing post.
NexThought Monday – Liquidity Farming: How the poor cultivate relationships to create sources of future cash
Poor people have a variety of ways to make money materialize, from agriculture and trading to investing in livestock or land. But a large portion of their industry is directed at farming liquidity, says Ignacio Mas. As Mas and John Gitau describe it, this involves cultivating a variety of techniques for converting their intricate social networks into potential sources of cash.