You can afford anything, but not everything. We make daily decisions about how to spend money, time, energy, focus and attention – and ultimately, our life.
How do we make smarter decisions? How do we think from first principles?
On the surface, Afford Anything seems like a podcast about money and investing.
But under the hood, this is a show about how to think critically, recognize our behavioral blind spots, and make smarter choices. We’re into the psychology of money, and we love metacognition: thinking about how to think.
In some episodes, we interview world-class experts: professors, researchers, scientists, authors. In other episodes, we answer your questions, talking through decision-making frameworks and mental models.
Want to learn more? Download our free book, Escape, at http://affordanything.com/escape. Hosted by Paula Pant.
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You can afford anything, but not everything. We make daily decisions about how to spend money, time, energy, focus and attention – and ultimately, our life.
How do we make smarter decisions? How do we think from first principles?
On the surface, Afford Anything seems like a podcast about money and investing.
But under the hood, this is a show about how to think critically, recognize our behavioral blind spots, and make smarter choices. We’re into the psychology of money, and we love metacognition: thinking about how to think.
In some episodes, we interview world-class experts: professors, researchers, scientists, authors. In other episodes, we answer your questions, talking through decision-making frameworks and mental models.
Want to learn more? Download our free book, Escape, at http://affordanything.com/escape. Hosted by Paula Pant.
Why Taking a Year Off Might Be Your Smartest Money Move, with David Bach
Afford Anything
1 hour 53 minutes
4 weeks ago
Why Taking a Year Off Might Be Your Smartest Money Move, with David Bach
#668: We’re joined in-studio by David Bach, bestselling author of The Automatic Millionaire and The Latte Factor. He’s updated his most popular book (over two million copies sold) and this is his last big launch as he heads into retirement.
Together, we wrestle with a problem our listeners know well: what happens when you’ve built the habit of saving, investing, optimizing … and then feel weirdly unable to spend.
We talk about mini-retirements, the psychology of “spend and enjoy,” and why waiting to touch retirement money can be its own kind of risk.
Key Takeaways
Think about retirement as a series of deliberate mini-retirements, not one finish line you might reach with less energy than you expected.
If you’re a dedicated saver, build a plan for the “spend and enjoy” phase so you do not accidentally optimize away the years you wanted freedom for.
Run the numbers on “small” spending habits, not to guilt yourself, but to see which choices actually buy future optionality.
Treat withdrawals, benefits, and deadlines as part of the strategy, not a paperwork problem you’ll deal with later.
If your finances feel out of reach, anchor yourself with a simple projection and one automated action, momentum beats motivation.
Resources and Links
David Bach’s website: http://davidbach.com/
David Bach’s books
The Automatic Millionaire (updated edition)
The Latte Factor
Smart Women Finish Rich
Chapters
Note: Timestamps are approximate and may vary greatly across listening platforms due to dynamically inserted ads.
(0:00) Introducing David Bach
(4:50) Radical sabbaticals, Florence and rethinking retirement
(9:10) Health scares, widowhood stats and enjoying life earlier
(11:00) Updating The Automatic Millionaire for 24 million millionaires
(15:30) Social Security strategy, RMD parties and claiming earlier
(31:30) The latte factor, avocado toast and $10 dollar decisions
(33:00) How $10 a day turns into $678,000
(34:20) Oprah behind the scenes, bricks of cash and an audience gasp
(47:10) Tiffany Aliche, $75,000 dollars of debt and other success stories
(54:25) A $53,000 income couple who retired as multimillionaires
(1:25:40) Careers in advising, hiring trends and women advisors
(1:28:37) Social Security taxes, new ideas and an eight year tax window
(1:41:27) Remembering the “why,” values based choices and using money well
Share this episode with a friend, colleagues, and the "automatitions" in your life: https://affordanything.com/episode668
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Afford Anything
You can afford anything, but not everything. We make daily decisions about how to spend money, time, energy, focus and attention – and ultimately, our life.
How do we make smarter decisions? How do we think from first principles?
On the surface, Afford Anything seems like a podcast about money and investing.
But under the hood, this is a show about how to think critically, recognize our behavioral blind spots, and make smarter choices. We’re into the psychology of money, and we love metacognition: thinking about how to think.
In some episodes, we interview world-class experts: professors, researchers, scientists, authors. In other episodes, we answer your questions, talking through decision-making frameworks and mental models.
Want to learn more? Download our free book, Escape, at http://affordanything.com/escape. Hosted by Paula Pant.
