Welcome to Wise & Wealthy: A weekly newsletter full of proven ideas to become smarter and wealthier. I send this every Monday.
#106 – January 15, 2024
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Wise: Writing as a focus tool
There’s a study that involved over a hundred laid-off senior engineers.
Researchers divided the group into two. One group continued their job search as usual, while the other group wrote for 20 minutes daily.
The writing group reflected on their feelings, the financial impact of job loss on their relationships/families, and next steps in their lives.
After eight months, only 19% of the non-writing group got re-employed full-time, compared to 52% of the writing group.
Writing is not only a way to communicate your ideas, but also a powerful tool to improve your focus, clarity, and productivity.
In my latest article, I share 5 tips for using writing as a tool to achieve your goals.
Wealthy: Simple investing ideas
The late Charlie Munger once said: “More investors don’t copy our model because our model is too simple. Most people believe you can’t be an expert if it’s too simple.”
The simplest investing ideas are truly the best. Execution matters most. Here are 5 simple investing ideas:
- If you have freedom, you have wealth: When you focus on setting your life up in a way that you have freedom, you can call yourself wealthy. And you can feel free even if you’re not a millionaire.
- Complexity doesn’t mean better returns: Innovation and complexity are often hailed as drivers of value in the modern economy. But if that were true, everyone with a high IQ would be rich.
- The best antidote for high interest rates is to save more money: By increasing the amount of money you put aside, you build a financial buffer that you can always use. Especially during times of high interest.
- Dollar-cost averaging is the best passive investing strategy: Dollar-cost averaging (DCA) is an investment strategy in which you invest a fixed amount of money in a particular investment on a regular schedule, regardless of the price. This takes emotions out of the game.
- Avoid what you don’t understand: One of the most valuable pieces of investing advice is to avoid entering into financial arrangements or investing ideas that you don’t fully understand.
The more you learn about personal finance and investing, the better equipped you’ll be to navigate the complexities of the financial world.
More on each idea in my full article.
One interesting thing
A beautiful reminder from Seneca’s How to Die: An Ancient Guide to the End of Life:
“Life, as you know, is not a thing that should be held onto forever. Merely to live is not in itself good, but rather, to live well.”
Live well my friend!
Thanks for reading! I hope you found this edition of Wise & Wealthy useful.
All the best,
Join the 5-day Financial Freedom Challenge
I created a 5-day email course you can do alone or together with a group. It’s called the Financial Freedom Challenge. And it will help you to gain control over your finances.
Most people try to calculate their way out of poor finances. But money problems aren’t rational. They’re emotional. Manage your emotions well, and you’ll manage your finances better.
How to Unlock the Financial Freedom Challenge
You can join the challenge for free. For five days, you’ll receive a short email with a small challenge that inspires you to improve your relationship with money.
I highly recommend sharing it with your friends/family so you can go through the program together. It helps bring perspective. And it’s more fun that way too.
Join here for free: dariusforoux.com/financial-freedom