I said I don’t want to add useless frugality commentary to the world, so I’ll try not to. It’s not that there isn’t a place for people to scold us for our ridiculous spending habits — god knows most of us need the absurdity of our decisions pointed out to us. Instead, I’ll try to express my current financial philosophy.
Philosophy is probably too strong of a word. It might be more like a collection of heuristics and ideas that I have absorbed from others. Among them:
- Buy assets, not liabilities.
- Compound interest.
- Your debt is an emergency. (I wish I believed this more. What I really believe in is the idea of revealed preferences.)
- Automate your finances.
- Where are the customers’ yachts?
- I can’t abandon my position! It’s a bull market.
- Know whether you’re trading or investing.
- Low-cost index funds.
- Don’t spend your health to gain your wealth.
- Use money, love people (not the other way around).
To be continued….