Saving is both necessary and difficult. There are ways to make it easier.
In the beginning, most of us have trouble saving money. It requires judgements about the use of money and about time. In particular, the present versus the future. How we assess the value of a future benefit is crucial to this judgement. If we… Continue Reading “Capital Accumulation Is Difficult”
It’s just arithmetic, but it is still difficult.
You cannot save your way to great wealth
Save at least a little
balance saving, spending, taxes and debt
Financial planners may someday want a client’s DNA sample before proceeding. I found this article in The Atlantic. The Willpower Gene Its thesis is that the ability to save may have a significant genetic component. If so, would a financial advisor not be well… Continue Reading “Please Bring A DNA Sample To Your Next Financial Planning Meeting”
Our future self is frequently unhappy about the things that our present self is doing. Can we avoid this conflict? We know that happens because our present self sometimes is unhappy with the things our past self accomplished. Intellectually we can decide to save… Continue Reading “To Save Effectively, Think About Time Differently”
If humans are offered two similar rewards, they will usually choose the one that comes soonest. If they have to wait, they will want a little more. We know, or at least psychologists and economists know, how that happens. Future events are “discounted” to… Continue Reading “Distant Elephants”