Aug 5th, 2010
Apply Occam’s razor to your finances
I have always gotten along well with math. I guess being an engineer by trade and writing a financial blog lends itself to at least tolerating math. Math is one of those things that I profess to know little about, but actually am quite good at. Philosophy on the other hand I profess to be an expert on, but know very little. So just for fun, lets mix the two together. As my son likes to say “Ready, set, gooooo…”
A decade or so ago I had a class in college on philosophy. I attended half of the classes. Of those I attended I slept through half. Of the half of those that I was awake for, I thought that half was boring. Of the half I did not think was boring, I thought half was BS. Of the little bit that was left I learned two things:
1) Philosophy professors have no grasp of real life
2) There were actually some pretty smart guys in history that came up with some pretty smart things.
Revolutionary, right? Well one of those things that I thought was smart was a little logical exercise called Occam’s Razor. To put it in simple terms it is the principle that everything usually boils down to the most basic fundamental things. One other way to state it that will be relevant to my eventual point is: do not complicate things unnecessarily.
You might now be asking yourself: “what on earth does this have to do with personal finance, my career, or any of those other things Jesse likes to ramble on about?”
The answer is: everything. Using a completely unscientific poll of my contemporaries, I’ve found that the vast majority of people reading personal finance sites, listening to personal finance podcasts, watching personal finance TV shows, and making people rich by buying personal finance books are most concerned with getting out of debt and saving money. Does this sound familiar to you? I know it does to me; its how I discovered I enjoy staying up late working on blog posts while listening to my eclectic music collection and drinking diet pop. We are now going to apply this concept to getting out of debt:
1) Am I spending less than I earn?
If yes, continue until debt is gone. If no, go to question 2.
2) Do I have a budget?
If yes, go to question 3. If no, create a budget and come back after a month. Ok ok, come back tomorrow, but come back to this article in a month.
3) Am I following my budget?
If yes, go to question 4. If no, follow your budget and then come back.
4) Are there things I can cut out of my spending?
If yes, go back and remake your budget, removing that which can be removed. If no, go to question 5.
5) Can I increase my income?
If yes, do so and then come back to these steps. If no, go to 6.
6) Something big needs to change.
If you got to question six, then there is nothing further to boil down, you need to make some sort of life altering sweeping change. It really is that simple. If you need help with any of those steps along the way, search my site and there will be answers.
You do not need to buy 10 personal finance books, listen to David Ramsey 24/7, or meditate for clarity. I just saved you doing all of that. Now, instead, you can go get out of debt, make more money, and send me an email about how you are killing it and you’d love to treat me to a scotch tasting on your new yacht.
- 21 Comments
- Debt
If this blog gets going in the same way that the ones on Ben Gallop’s one did, how long will it be before the BBC closed this one to?
It’s not right for the BBC as a public body to simply ignor it’s investors and hope this will go away because it won’t.
how anyone dress way up is the way one normally judges your look and in the event you actually add some Moncler coat for a person’s attire, you might probable often be reflecting your Moncler Outlet own personal self because becoming the gentleman or women which includes tastes and elegance.The Moncler small coat try looking in exclusive types and capabilities.
i like it
He does have a point though, F1 would be much better if three quarters of the teams weren’t simply there to sell advertising and make up the numbers. How that’s done though is beyond me.
You are right. What you have discussed above is appropriate. I like reading through in on this blog and examine the feedback you get.
If most of the teams were competitive and had at least some chance of winning. It is supposed to be the pinnacle of motor sport, but half the teams get lapped. Once great teams like Williams or Lotus just cannot compete financially with the top teams. I know there is no way it can change. It’s a bit like the Premier League the rich get more powerful and win everything.
If my intention to achieve, I wish getting a teacher. However, educating is not an uncomplicated thing.
A pale green jade Buddha pendant is hanging in ZhangLinYun chest, just the jade Buddha it seemed evidently seems to than the that piece of jade white jade Buddha box on many poor quality.
so what are you proposing, getting rid of all the teams except for mclaren, ferrari and redbull! cos if so, its an even worse idea than the bbc/sky tv deal!
I wonder is there really much point in having the lesser teams there wasting a fortune? No one ever notices them unless there is a big accident. They have no chance of getting on the podium. Even Mercedes can’t.
This does not extend to problems that arise from normal wear and tear.
Slight dye transfer may occur with darker colored sheepskin during first few wears.
I do hope the HM Government e-petitions comes on-line today, get 100,000 signatures there and it is eligible for debate in parliament.
Hi Murray, before I watch your video do I have to subscribe to SKY to watch the other half?
Maybe the BBC can show 50% of the teams all the time ie the top 6, and SKY can show everyone else
This is a Good writing, wow, it is wonderful,I’m interested in these right,I have found it very useful, looking forward to you as soon as possible to update your works! we will always support you.
Ningbo Yinzhou Nuoya Cement Block Machine Factory, a professional manufacturer and exporter of all kinds of Single and Multi Spring brick machine,concrete brick machine,block machine,We are a member of Building Block Association with excellent and advanced technology.
Friggin’ amazing things here. I am very glad to peer your post. Thanks so much and i am looking forward to contact you. Will you please drop me a e-mail?
Your concept is really super cool and looking very effective to discharge the debt.I am also burdened with heavy debts so I think your concept can help me too to come out of it.I will follow this. Great post you have shared.
I just bring into being this blog and have high hopes for it to continue. continue up the great work, Reflection of love its hard to find good ones. I have extra to my favorites.
Pleasant posts. I have just found the desired information in your blog and wish to say that I am really enjoying reading your blog posts.