Category: Psychology
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The Six-Month Emergency Fund Everyone Recommends Is an Expensive Psychological Trick. Here Is Why.
Introduction “Keep six months of expenses in cash so you will not have to sell investments at the worst possible time.” This sounds unquestionably prudent. But what exactly would that “worst possible time” cost? And how much are you paying while waiting for it? The Price of Safety You finally decided to take care of…
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The Moving Line in Financial Security: From “Never” to “Why Not”
Intro The goal of this note is not to tell you how to live, but to give you a framework to evaluate your own decisions.It is useful to balance the numbers when we talk about expenses in our life.There is a well-known discussion about avocado toast and lattes “ruining” your financial future, or not.Usually, the…
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On the price of financial instruments
Eating in the restaurant instead of buying four in a grocery store is a waste of money Buying new car instead of used one is a waste of money Buying annuities or life insurance instead of stocks is a waste of money NOT At some point in life it is time to spend more and…
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“Do You Really Love Your Job?”
Some people say they love their job. (While many others secretly count the days until Friday, but this is different story) Here’s a quick thought experiment for the first group. Imagine I make you an offer:You’ll never have to worry about money again.From today until the end of your life, everything you need is fully…
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Financial advisors make life better. Why planning beats ignoring
Accepting that money needs to be managed is not easy. Somehow, there is a roadblock to the idea that handling and optimizing money is not a decent goal. We do not want to be bothered with it. We work hard, and that is it. Let’s think about it one more time. Assume we’ve decided to…