Archives of “January 2019” month

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11 Rules For Being Human

  
  Education
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1. You Will Receive A Body                                                                  You may like it or hate it, but it will be yours for the entire period this time around.

 2. You Will Learn Lessons

You are enrolled in a full-time informal school called Life. Each day in this school, you will have the opportunity to learn lessons – you may like the lesson or think them irrelevant and stupid.

3. There Are No Mistakes, Only Lessons
There is a process of trial and error; experimentation. The ‘failed’ experiments are as much a part of the process as the experiment that ultimately ‘works’.

4. A Lesson Is Repeated Until It Is Learned
A lesson will be presented to you in various forms until you have learned it. When you have learned it, you can go on to the next lesson.

5. Learning Lessons Does Not End. 
There is no part of Life that does not contain its lessons. If you are alive, there are lessons to be learned.

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Trading lessons from the road

  
  Education
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Two lessons from the road:

– It only takes a small slip-up to create big negative effects. Conversely, the road to success in many of life’s ventures seems to be more incremental. Think of the engineering behind cars, space shuttles etc. One small error can lead to total disaster, but for everything to work, so many things have to be ‘right’. A related pattern is the  carry trade in the currency market, where returns are incremental as the high yielding currencies slowly appreciate, but when we witness episodes of carry trade unwinding, things are not nearly as orderly.

– Missing my junction would be less of a problem if I was less tired and fatigued, because I would feel less downhearted at having to do the additional driving. However, it is when we have energy and are wide awake that we are least likely to miss our junctions, and we are more likely to miss them when we least want to. This reminds me of insurance not working when it comes to claiming, of correlations heading to one in times of crisis, and of markets being flush with liquidity, only for it to dry up right when it counts.

Identify What Is Truly Important

  
Education, Life
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What’s important about money to you?

This is an uncomfortable question because we aren’t used to thinking about money in those terms. But it’s one of my favorite questions to ask. Even before talking about goals or building a personal balance sheet, you might find it helpful to ask yourself this question.

While I’m not certain of the question’s origins, I first learned of it about a decade ago in a book by Bill Bachrach. It was about the importance of understanding your values when making important financial decisions. I’ve been using the question ever since. (more…)

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