Personal finance is easy. Spend less than you make. Put that extra money into the market in a low-cost index fund. Rinse and repeat every single month for decades, until you are ready to retire. You can say it all fits on an index card.
But like losing weight - eat less than you expend in energy, what’s easy on paper is difficult for people to execute. That’s why American obesity rate is top 10 in the world. (GLP1 agonists to the rescue!) And consumer credit card debt is at an all time high.
From watching personal finance shows like Caleb Hammer, what I am seeing is that people do understand what needs to be done, but the salience of that action is buried under a pile of emotions hijacking the brain. That forthcoming vacation is way more exciting to think about. The DoorDash delivery person is coming soon with that burrito you deserve after a long day at work. Why yes you absolutely should spend a year’s salary on a brand new car.
The boring and unexciting slog of wealth accumulation never stood a chance against those positive emotions. Just like the cozy and comfortable couch beckons you to abandon your difficult and tiresome workout plans for the day.
It can’t be all down to willpower, right? To mentally fight against the easy and pick the hard. Because we all know that willpower is fleeting. Our marvelous minds can convince and rationalize us of (and out of) anything. Spend six-figures on a car? Of course! I am a card-carrying car enthusiast. Hashtag man maths.
Unfortunately, unlike weight loss, there’s no magic pill for debt.
Not quite camouflaged.