Sahil Bloom recently shared a jarring stat: “By the time your child turns 18, you've spent ~95% of the time you will ever spend with them in your lifetime,” based on research from the American Time Use Survey done by Our World in Data.
I was thinking about this piece in a different context…..In economics-based financial planning, we arrive at a sustainable level of spending across an expected lifetime. Spending, as you know, is food, shelter, clothing plus discretionary spending. There are too many financial rules of thumb with the benefit of being simple, and the cost of being economically wrong. Saving 10% of one’s income is a good example……When savings is informed by first finding the optimal living standard, there is an explicit recognition that discretionary spending matters. To the extent memories are created from life events beyond basic needs, your article is on the same page as economics-based planning.
Enjoyed the maximize memories section of this post!
Thanks, @Robert Puelz! What’s the last great memory you crafted?
I was thinking about this piece in a different context…..In economics-based financial planning, we arrive at a sustainable level of spending across an expected lifetime. Spending, as you know, is food, shelter, clothing plus discretionary spending. There are too many financial rules of thumb with the benefit of being simple, and the cost of being economically wrong. Saving 10% of one’s income is a good example……When savings is informed by first finding the optimal living standard, there is an explicit recognition that discretionary spending matters. To the extent memories are created from life events beyond basic needs, your article is on the same page as economics-based planning.