Winning the battle, losing the war 1

How to make sound and long-term financial decisions

Photo by Morgan Housel on Unsplash

“Winning a battle but losing the war is a military mental model that refers to achieving a minor victory that ultimately results in a larger defeat, rendering the victory empty or hollow. It can also refer to gaining a small tactical advantage that corresponds to a wider disadvantage.” -Shane Parrish

1. Being ignorant about your finances

2. Not having a budget

“Budgeting isn’t about limiting yourself-it’s about making the things that excite you possible. “The Financial Diet

3. You’re stuck in your fear of investing

4. Consumer debt

“The poor will borrow from the rich and pay them interest just to live like them for a day. Then they wonder why they can’t catch up.” Wealth Theory

5. Financial Procrastination

The advantage of compound interest

Compound interest works in your favour the longer you invest. If you start later than people who started in their early twenties, it will be harder to catch up as their interest rates will be working hard on their behalf as you struggle to cut your expenditure in old age when you should be enjoying a bit more comfort and flexibility.

The disadvantage of compound interest

The best time to plant a tree was 20 years ago. The second best time is now. — Chinese Proverb

“Grand strategy is the art of looking beyond the present battle and calculating ahead. It requires that you focus on your ultimate goal and plot to reach it.” — Robert Greene, The 33 Strategies of War



Your voice of reason before you blow all your money this weekend!

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