Conclusion: The Just Keep Buying Rules Flashcards
(26 cards)
What is the premise of the time traveler’s game?
You wake up in the past with no knowledge of your current life and must give yourself financial instructions to maximize wealth.
What are the Just Keeping Buying rules?
A specific set of financial instructions to maximize the probability of financial success.
What does ‘Saving is for the Poor, Investing is for the Rich’ imply?
Focus on savings if expected savings are greater than expected investment income; otherwise, focus on investing.
What should you do if your expected savings and investment income are similar?
Focus on both savings and investing.
Fill in the blank: Your savings rate shouldn’t be fixed; save what you can to reduce your _______.
financial stress
What is the focus when it comes to financial growth?
Focus on income, not spending.
What is the 2x Rule?
Invest the same amount of money into income-producing assets or donate if you feel guilty about spending.
What percentage of future raises and bonuses should you save?
At least 50%
Is debt inherently good or bad?
Debt isn’t good or bad; it depends on how you use it.
When should you buy a home?
Only when the time is right for your finances and lifestyle.
What is the recommended way to save for a big purchase?
Use cash.
Retirement is about more than money; what should you know before retiring?
What you want to retire to.
What should you invest in to replace waning human capital?
Financial capital.
How should you think to grow your income?
Think like an owner and buy income-producing assets.
True or False: Buying individual stocks is a guaranteed way to outperform the market.
False
What is the optimal strategy for buying and selling in the market?
Buy quickly, sell slowly.
What is dollar-cost averaging?
Investing as often as you can instead of trying to time the market.
What matters most in investing, according to the text?
How you play your hand.
What should you not fear when investing?
Volatility.
Market crashes are usually what type of opportunity?
Buying opportunities.
What should you fund before risking it for the life you want?
The life you need.
What should you consider before maxing out your 401(k)?
What else you might need your money for.
You’ll never feel rich, and that’s okay. Why?
There will always be someone with more.
What is your most important asset?
Time.
