On changing your mind, spending and status quo

A: I make no excuses or apologies for changing my mind. The world around me changes, for one thing, but also I am continuously learning. I have never finished my education and probably never will….

spending beyond income means borrowing, and all of economic history proves that too much borrowing is the core of economic disasters and chaos.

But there is a tendency — as I’ve suggested in answering all your questions — for people to expect the status quo either to last indefinitely or to provide advance signals for shifting strategies. The world does not work like that. Surprise and shock are endemic to the system, and people should always arrange their affairs to that they will survive such events. They will end up richer that way than [by] focusing all the time on getting rich.

A (Long) Chat with Peter L. Bernstein

Life’s a gigantic collaboration

As relatively new father I think I alot about what I want to teach my daughter. Below quote really struck a cord.

To me, raising kids to feel pressure and fear so they can be COMPETITORS is bullshit. Life is not a competition. It’s a gigantic collaboration, and the world welcomes and rewards people who see it that way.

What I’m Teaching my Son about Money

Indeed when it comes to human interactions: 1+1 ≠ 2

Multi disciplinary thinking

This takes us back to John Stuart Mill, the great nineteenth-century economist and philosopher, who believed that nobody can be a good economist if he or she is just an economist.

Most economics students are not required to study psychology, philosophy, history, or politics. They are spoon-fed models of the economy, based on unreal assumptions, and tested on their competence in solving mathematical equations. They are never given the mental tools to grasp the whole picture.

Economists versus the Economy

My current source of multi disciplinary thinking and a source of lessons from wide selection of topics and areas is the Farnam Street.

past vs the future

they say past returns don’t represent future returns but…past is generally a good indicator of the future.

you can safely predict your future capacity to execute a plan by your past capacity. If you plan to go to the gym every day, and previously you kept the habit of a daily exercise, it’s probably not an unreasonable belief that you can do it again.

Make Plans Work on 20% Effort

20% effort

If you need to tackle a challenging, yet unfamiliar goal, I recommend starting at 20% and moving upward. Figure out what you feel you could reasonably accomplish, cut it down severely and then slowly increase it as you get used to the habit. Some examples: Writing. Think you can do 1000 words a day? Make it 200 the first week, 250 the next, etc. Exercise. Think you can do an hour a day at the gym? Start with 15 minutes. Reading. Want to read a book a week? Try reading 5 pages a day. Language learning. Start with a twenty minute lesson, once a week.

Make Plans Work on 20% Effort

Start slow and build up as you get more comfortable.

Random by nature?

Biological systems are generally hacks that evolved to be good enough for a certain environment. They are far from pretty top-down designed systems. And to accommodate an ever-changing environment they are rarely the most optimal system on a mico-level, preferring to optimize for survival over any one particular attribute.

The Need for Biological Thinking to Solve Complex Problems

Improvised solutions are typically those that last longest…

To remember for longer 

Practice at retrieving new knowledge or skill from memory is a potent tool for learning and durable retention. This is true for anything the brain is asked to remember and call up again in the future—facts, complex concepts, problem-solving techniques, motor skills. Effortful retrieval makes for stronger learning and retention.

To Learn, Retrieve