Three Ways To Ruin Your Financial Life

One of the most powerful ways to think that I picked up from Charlie Munger was this: reverse engineer everything. There are generally two ways to do this: first, you determine the outcome you want, and then you break down the steps in reverse order that would be necessary to get you there—and voila!—you suddenly have a blueprint to fulfill a particular dream.

The other approach involves finding happiness by avoiding misery. This means that you identify the life outcomes that you want to avoid, and then you draw up a path that would lead to those undesirable outcomes, so that you can catch yourself if you find yourself drifting in that direction.… Read the rest of this article!