What I have been reading - 3rd August 2020
Here are the things I enjoyed reading over the past few weeks:
Appearances vs Experiences: What Really Makes Us Happy: A wonderfully thoughtful article from Farnam Street Blog. "The problem is that we misunderstand how our choices really impact our well-being and end up making ones that have the opposite effect." This is at the heart of good financial planning - really understanding how to use our money to bring us happiness.
A Simple Way to Vastly Improve Your Investment Performance: I love this from Jim O'Shaughnessy! My clients do have to sign their investment policy statement which states the things we will do, and the things we won't do, but there is something powerful about the wording of this one.
There is nothing wrong with a traditional career: I think that many of you will like this article. Just make sure you get to the last paragraph.
Hygiene Theater is a Huge Waste of Time: You might want to read this article by The Atlantic's Derek Thompson before embarking on a "deep clean".
The No1 thing people with fat savings accounts scrimp on that you likely don't: A terrible click-bait headline from MarketWatch, and I can save you the click....the two things are affordable housing and old cars. I always say that you need to get the big stuff right - there's no point stressing about the odd meal out, or a new pair of shoes, if you are over-extended on your house and buying a new car every few years. The house we live in, the cars we drive, and the trips we take - these are the things that matter.
Once you're out of the market, it's tricky getting back in: This article from the NY Times does a good job at getting into the psychology of jumping out of the market in a panic, and what happens next. As I always say, getting-out is only half a decision. You have to know when to get back in again. And it's impossibly hard. "You think it's going to make you feel better, but once you get there, you realise that cash is the most difficult allocation when it's not part of your long-term strategy."
What will you do with the time you save?: Seth Godin is a Master at getting to the point.
