The fact is that the majority of our thoughts and actions are on autopilot. This isn’t necessarily a bad thing either. Our habits, routines, impulses, and reactions carry us through our lives so we don’t have to stop and think about it every time we wipe our ass or start a car.
The problem is when we’re not even aware of our own habits, routines, impulses, and reactions, then we no longer control them they control us. Whereas a person with self-awareness is able to exercise a little meta-cognition and say, “Hmm… every time my sister calls me and asks for money, I end up drinking a lot of vodkas.
The problem is when we’re not even aware of our own habits, routines, impulses, and reactions, then we no longer control them they control us. Whereas a person with self-awareness is able to exercise a little meta-cognition and say, Hmm every time my sister calls me and asks for money, I end up drinking a lot of vodkas.
The truth is, the upward-sloping portion of the long-run cost curve for the typical home is a result of not having a “skin in the game” when buying a home. This can happen if the seller is an inexperienced, under-educated, uneducated, or just plain lazy seller.
We tend to think of the typical home buyer as a person who has a great deal of money and a lot of time. This is a complete myth. The average home buyer is a person who has a great deal of money and a lot of time because they don’t have a skin in the game, they don’t have a lot of money. They have a great deal of money, and they’re spending all of it on the home.
In fact, the average home buyer is a person who is so dumb and lazy, they dont even have a skin in the game. They have a skin in the game, but they have it so thin, they can barely make a dent in it.
And that is why getting a home is the worst thing you can do for your family. A typical American has a skin in the game. For some reason, they dont even realize that they have a skin in the game when it comes to their finances.
There are a few reasons why the typical American has a skin in the game. The first is, they are so lazy and too stupid to save. For example, they never save for a rainy day. For them, investing is like the opposite of gambling: you have to put money in the bank to get out. So, when the time comes to move, they just plop down their money.
They also have a family. A family is a group of people that has a common set of values and who all know each other. If one of them dies, it has to be a major life-altering event for that person to leave a major life-altering mark on the other family members. Usually, the first family to leave the second family are the ones that are the most dysfunctional.
This is a point made in Chapter 5 of The Three Pronged Strategy of Risk Control, which you should read before you start reading the rest of this book.
