reasonable-not-rational

[AI Synthesis]: Perfect rationality is a poor guide for real humans. Reasonable plans you can stick with beat optimal plans you abandon.

Reasonable beats coldly rational

• Do not aim to be coldly rational when making financial decisions.
• Aim to be pretty reasonable—more realistic and easier to sustain for the long run.
• That is where the science ends and reality takes over.

Actions

• Prefer a financial rule you will follow for decades over a theoretically optimal rule you will quit under stress.

Sources

Related Topics

• psychology-of-money
• saving-money
• nothings-free