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How I Manage Money Part One — Saving and Earning

I have a somewhat unusual method of thinking about and managing money, which has worked out very well for me. Because money, saving, and spending is such an emotional issue, I believe that there is not a universal correct method for everyone. For example, a strategy that increases someone's earnings by 5% but also increases their stress by 50% probably isn't a good one.

So I present my ideas on finance not as empirical examples of perfect management, but rather something that works great for me and may work for people of similar mindsets.

The goals of my system are to minimize variance outside my control (e.g. stock market performance), maximize long term utility on assets, and minimize the chance I will ever have to do anything I don't want to do. The end goal is not to have the most money possible or to earn the most possible, though both of those things can support my goals.

I don't want outside variance because it inhibits my ability to plan. Accepting variance often increases long term rewards, so I am happy to accept some of it, but I never invest in the stock market because I believe that earning an average 7% per year is not worth putting my whole nest egg at stake.

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