Sunday, March 11, 2018

Money, Confidence, and Discipline

I read a blog post by the famous Mr. Money Mustache titled Money and Confidence are Interchangeable . Basically, the more confidence you have, the less money you need to amass before you can give your leave notice. The opposite is true as well. The less confidence you have the more money you need. I totally agree with this notion I just really worry that most people will read this and misunderstand what he means by confidence. If someone just decides that they or confident or maybe takes a couple sips of beer and quits their job. That would be a huge mistake. Regardless of how "confident" they feel about it, if that confidence isn't backed by anything, then it would be a foolish move and they just wrote a check they can't cash. Its highly likely that that person would struggle in that situation and take on a lot of unneeded stress. But, if that person has seen himself respond well during hard times and had built up discipline then he should feel rather confident to take risks and live the life he wants.

Confidence isn't just something that comes to you because you decide. It's some thing that comes to you because you decide AND you act. And if you do this over and over again, in different situations, you build up that confidence and become antifragile 

When I quit my job I looked how much money I had in the bank and what my run rate was. Then I looked at my discipline. I looked at what I did when I woke up. I looked at my ability to focus and concentrate. I looked at my ability to prioritize. To grind. And even though I had some failures in some of my interviews (when I was looking), I was mostly looking at how I reacted to them. Did I feel sorry for myself? Or did it make me work harder? Working harder and getting stronger under stress and adverse conditions is an antifragile response. Knowing myself and seeing myself in action (and having savings) gave me the confidence to decide to quit.

I think its a great article but I'd say that Money and Discipline are Interchangeable would be a better title.