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Good With Money vs. Good With Resources

I've been thinking about people who are "good with money" lately. Certainly, being "good with money" is superior to being "bad with money" - people who are bad with money spend a lot of their life in unnecessary stress. Generally, being "bad with money" would mean not being in control of your spending, having debt unnecessarily (if you're just carrying around a lump of debt, you only need to cut your spending in the short term to get rid of it, and then you can go back to your old spending levels debt free), and otherwise not managing their finances well.

Yet, "good with money" by itself doesn't predict success all that well. Oh, to be sure, it helps a lot. But we all know people who you'd call good with money who aren't successful in general.

I've been thinking on the reason why - and I think it's because money is only one of many resources. You've also assets, both securitized assets (stocks, bonds, real estate, whatever) and assets that are more intangible and impossible to buy/sell/trade as a security - more amorphous things like prestige, credentials, and of course, skills and experience.

I also think the word "resource" isn't the best particular word, since there's a lot of things that are resource-like that aren't really resources... obviously our relationships aren't resources, but can also be invested in similar to a resource. You can go out of your way to do nice things for people who have done right by you, you can be thoughtful, you can go out of your way to travel to a place if someone you really admire is there.

Being good with money guarantees none of the above.

Maximizing Your Opportunity Window

On Tynan

In my last post i talked about what NOW is the right time for. The implication, of course, is that there are certain periods of time where you can actually take advantage of opportunities that come your way. Let's call that your Opportunity Window. In the Standard American Lifestyle, that window is narrow. Really narrow. It probably starts somewhere at the end of senior year in college and ends a few months afterwards.

There are small blips of opportunity afterwards, too. Getting fired creates a window. Some sort of windfall income might create a window.

That sucks. Someone with a Standard American Life probably has no more than a year of Opportunity Window in their lifetime. It's only during those times that they can start a new business, leave their lives behind and try something new and exciting, or just make a drastic change.

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