Showing posts with label Extra. Show all posts
Showing posts with label Extra. Show all posts

Wednesday, August 04, 2021

Enough to go Around

If you tie your identity and incentives to your job and pay, the stress and shocks of money will drive your anxiety. Hunter-Gatherers may have also lived hand-to-mouth, but that is a false analogy because they were living off the land (a form of capital which produced opportunity). They had the option of moving in tough times. We live in containers which restrict our movement (countries, job qualifications) and do not all have the option of a menu of skills which provide almost certain payback if mastered (hunting and gathering). 

Modern hand-to-mouth living means spending all you earn, without the option of earning more if that is not enough. When there is more than enough, simply consuming it. Adjusting spending up if income rises. The trick is to slowly separate from that. To see value in things that are abundant, and put your money to work solving scarcity. “Democratic Goods” are things where there is sufficient supply that everyone who wants it, can have it... at a reasonable price. 

Price surges when there is not enough to go around. Price surges when we borrow to buy at a price we can’t afford... because there is not enough to go around. If you can find and see value in things where there is sustainably enough to go around, you can detach from the relentless stresses and violent shocks of scarcity. 

Gathering Honey


Tuesday, June 29, 2021

Early Growth

Building capacity for endurance and resilience requires space. One of the reasons it is hard to start saving and investing is because you first need to be able to handle the basic noise. You cannot build if there is nothing extra to build from.

The concept of extra can even trigger people as insulting. One of the biggest pushbacks I get as a campaigner for savings and investment is that for the vast majority of people, this seems ridiculous. When I start saying you need self-restraint, and to spend less than your income. The trade-offs people must make are often hard. “Nothing kills an activist like a mortgage and school fees”.

Life starts living people, rather than people living life. Responsibilities make people much more conservative because they have obligations. There is less capacity for flexibility because people have made commitments that are important to them.

Advice is usually autobiographical, because it is heavily dependent on the story of the person giving it and where they came from. These questions do not have easy answers, but how we create space is a beautiful question. 

Early Growth is Fragile