Thursday, July 25, 2019

Bits Moving Independently


Most of our money thinking is focused on the “profit line” – earnings and returns. Yet despite the wide range of incomes people get, the vast majority manage to spend it all. Hand to mouth living, even if the hand and mouth are very big. Like the limbs of a drummer, genuine Financial Security requires the bits to move independently. You learn more about spending habits from people who earn less than you. We have fixed expenses each month, we have the ones we can control, and we have the predictable surprises. You can get a sense of that rhythm. Then don’t let the beat change when the earnings and returns get funky. “Save more later” is a nudge where you commit to put any increases to work rather than spending them. There is obviously a bare minimum below which putting anything aside is incredibly difficult. It is what makes poor parents who sacrifice so much to get their children a better education so impressive. Creating music starts with the hard graft involved in training your limbs. Hard, but not impossible.



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