A simple and effective approach to building wealth
A couple of years ago I wrote a post about How to Start Investing Today.
Since then, my basic investment philosophy has not changed, but some of my specific recommendations have evolved.
In this post, I reintroduce my investing philosophy and share my updated and specific steps for how I manage my money.
Who is this for?
This post . . .
Jeff Bezos likes to call Amazon a "Day 1 company."
We are all familiar with the feeling of Day 1.
It's that feeling of the incredible first date, starting a new job, the first day of school, the beginning of the playoffs, or launching a new idea or product.
Day 1 is all about movement, momentum, hard work, and . . .
Us humans have weak minds.
We stick to the status quo when we should be making a change.
We hardly ever change our minds, even when we're wrong.
We make terrible, and easily avoidable, financial choices.
And we're scared of sharks, even though 733X as many humans are killed by freshwater snails.
But it's not all bad news . . .
One of my favorite economists/philosophers, Tyler Cowen, has a great interview on the Ezra Klein Show, which I highly recommend.
At multiple points in the interview, they discuss status quo bias.
Status quo bias is exactly what it sounds like - an emotional bias in favor of the way things are.
The thing about status quo bias which is so . . .
We are studious in high school so we get into a good college.
We study and stress in college so we get a degree.
We use our degree to get a good job.
We work hard at our job so we can make a lot of money.
We make a lot of money so we can retire!
And then ...
It turns out, there is nothing special waiting at the end.
. . .
A lot of people have fitness resolutions for the New Year.
And most people make them WAY too ambitious.
It's really hard to start doing crossfit, or running, or yoga 3X per week, if previously:
- You rarely or sporadically did that thing.
- You don't have a specific program to follow.
- You haven't specifically scheduled it on your calendar . . .
the power of radical ownership
It’s all your fault.
Remember that this year.
If your relationship with a colleague, family member, or boss is strained, it’s your fault.
When someone on your team drops the ball, it’s your fault.
That time someone yells at you? Yep, your fault.
It’s not about blame. It’s about empowerment. Empowering yourself to . . .