Getting to be great at money is like losing weight. Those who are successful at it don’t reach their goals because they perfectly stick to a plan. They are successful because they make more good decisions than bad ones over a long period.
We’ve long theorised that there are five financial concepts that underpin good financial decisions. We posit truly understanding these concepts will remove a lot of the uncertainty that often fuels financial decision-making. Taking the right variables into account, you will hopefully end up making more good choices than bad ones.
We discuss each of these concepts in this episode, but to recap, they are:
- Assets
- Interest
- Inflation
- Compounding
- Index-tracking products
In this bonus episode, we help one of our listeners solve a property dilemma by applying these parameters to his specific situation. Follow our line of thinking and see if you agree.
Kristia
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