·“Building wealth has little to do with your income
or investment returns, lots to do with your savings rate” --> 2 people making the
same amount, the one who spends less will end up with more.
·Once your basic needs are met, what you need is
what’s sitting below your ego -->
people who spend to buy material goods are simply showing others that they have
money --> those who are wealthy don’t give a damn about what others think --> recall the book “the
subtle art of not giving a fxxx”
·Saving gives you flexibility and control over
your time, which is the MOST INVALUABLE!!! -->
what you are not spending today = earlier retirement, the ability to wait and
act on potential opportunities, and freedom from worry
·Save for the saving’s sake --> you don’t need a
reason to save!!!
·We are all human: aim for being mostly
reasonable than trying to be coldly rational -->
you may play with the day trading (strictly small amount!) if it scratches an itch,
as long as you leave the rest of your diversified investments alone
·Markets evolve over time. There is less value in
relying on the history to predict the future. The further you go back, the more
general your takeaways should be. For specific trends, specific causal
relationships in the market, look to the more recent history.
·When planning for the future, always allow for the
margin of error: e.g. plan for your predicted return on investment to be 1/3 lower
than the predicted market average.
·Future is unpredictable --> any plan that includes a
downside which has the potential to ruin / wiping you out completely, is not
worth the risk (e.g. Leverage – taking on debt to push your money further) --> again, plan for your
plan not going according to the plan (you don’t need a specific reason to
save!!!)
·You change over time. Your dreams and
aspirations in the past may not be the same in the future. The present you make
decisions that will largely influence the life of the future you. --> Avoid the extreme ends
of financial planning to minimize regret (e.g. extreme austere lifestyle, / extreme
luscious lifestyle etc.)