Pebbles of Perception: How a Few Good Choices Make All The Difference

Any action that improves on something else demonstrates B-tivity. We are all capable of B-tivity.

While our theme has been the search to put wise heads on young shoulders,

Our behaviour is known as “hyperbolic discounting” and it helps explain why we are generally poor at saving for retirement.

(loss aversion).

To treat our children well we need to know and respect ourselves.

David Swensen’s Unconventional Success or Joel Greenblatt’s You Can Be a Stock Market Genius.

You may also have noticed how we love to invent reasons for things, frequently mistaking correlation for causation.

Avoiding mistakes is also crucial to wealth preservation. The mathematics of mistakes is miserable. The two most common sources of mistakes are: (i) not knowing what you are doing; and (ii) leverage (i.e. borrowing or debt).

Here we introduce four cornerstones of sensible saving. Cornerstone One: Maximise your capacity to save.