Fri Apr 04 2014
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People Make Their Finances More Complicated Than They Need To Be

This week’s Alpha Baskets post is titled People Make Their Finances More Complicated Than They Need To Be and features a list of simple investment rules written up by Morgan Housel at The Motley Fool.

A huge theme for Random Roger posts has been the importance for financial simplicity. Obviously plenty of people have written about this and while I generally believe everyone realizes on some level they should keep things simple, avoid excessive debt and all the rest it becomes very difficult to do in practice.

Housel begins by noting that with the tens of thousands of finance books and billions words in those books, it all boils down to “work a lot, spend a little, invest the difference.” That will seem familiar to long time readers of Random Roger where I’ve talked about living below your means and the importance of a high savings rate because that is far more within your control than investment returns.

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