Chapter 110

Financial Choices

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Money decisions trigger emotional responses that cloud judgment. Systems remove emotion from the equation.

The Automated Money System

Remove daily financial decisions entirely:

Income Allocation (Adjust percentages to your situation) - Fixed costs: 50-60% (auto-paid) - Savings: 20% (auto-transferred) - Investments: 10% (auto-invested) - Guilt-free spending: 10-20%

Once set up, no daily money decisions required.

The Purchase Decision Tree

For any non-routine purchase:

Under $50: Use guilt-free spending, no analysis $50-200: 24-hour cooling period $200-500: One week consideration + research $500+: Full framework analysis: - Do I need it or want it? - Cost per use calculation - What else could this money do? - Will this matter in one year?

Investment Decision Framework

Stop agonizing over perfect investments:

The Simple Portfolio - Emergency fund: 6 months expenses (high-yield savings) - Retirement: Age-based target fund or 3-fund portfolio - Medium-term: Balanced index fund - Speculation: Maximum 5% in anything risky

Review annually, adjust rarely.

The Debt Hierarchy Pay minimums on all, then attack in order: 1. Anything over 10% interest 2. Smallest balances (psychological wins) 3. Variable rate debt 4. Fixed rate under 5% (no rush)

No daily decisions needed—the framework decides.