How could economics not be behavioral? If it isn't behavioral, what the hell is it?
Charlie MungerRead
Spend less than you make; always be saving something. Put it into a tax-deferred account. Over time, it will begin to amount to something. This is such a no-brainer.
Interpretation
What this quote means
Live below your means and save for the future to build wealth over time.
Charlie Munger emphasizes the importance of personal finance management through the principle of spending less than you earn and saving the surplus. He advocates for prudent financial practices, such as investing savings into tax-advantaged accounts, highlighting that these behaviors lead to significant wealth accumulation over time.
Themes
SavingFinanceWealthInvestmentMoney Management
In practice
Example use cases
During a financial workshop on budgeting, this quote could be cited to emphasize the importance of saving.
More from Charlie Munger
All quotes →The world of derivatives is full of holes that very few people are really aware of. It's like hydrogen and oxygen sitting on the corner waiting for a little flame.
Charlie MungerRead
I believe in the discipline of mastering the best that other people have ever figured out. I don't believe in just sitting down and trying to dream it all up yourself. Nobody's that smart.
Charlie MungerRead
Economics is in many respects the queen of the soft sciences. It's expected to be better than the rest. It's my view that economics is better at the multi-disciplinary stuff than the rest of the soft science. And it's also my view that it's still lousy.
Charlie MungerRead
Look at this generation, with all of its electronic devices and multitasking. I will confidently predict less success than Warren, who just focused on reading.
Charlie MungerRead
Economics profession, they've been - they've been confident in various formulas, but economics is not physics. The same formula that works in one decade doesn't work in the next. Economics is a difficult subject.
Charlie MungerRead
Similar quotes
It is absurd to think that the general public can ever make money out of market forecasts.
Benjamin GrahamRead
Don’t ever average losers. Decrease your trading volume when you are trading poorly; increase your volume when you are trading well. Never trade in situations where you don’t have control. For example, I don’t risk significant amounts of money in front of key reports, since that is gambling, not trading.
Paul Tudor JonesRead
We are all powerless as children, and money looms so powerfully... we don't grow up to claim our financial power until we look money directly in the eye, face our fears, and claim that power back.
Suze OrmanRead
Working for company X and having a substantial portion of your retirement plan in company X is simply exposing yourself to too much risk, because the company is both your employer and the source of your retirement income. So if something goes wrong, you lose both your job and your retirement plan.
John C. BogleRead
There is a burden of care in getting riches; fear in keeping them; temptation in using them; guilt in abusing them; sorrow in losing them; and a burden of account at last to be given concerning them.
Matthew HenryRead
The stock market is a wonderfully efficient mechanism for transferring wealth from the impatient to the patient.
Warren BuffettRead