2253: Room For Error by Jesse Cramer

Optimal Finance Daily - Financial Independence and Money Advice

Optimal Living Daily LLC

Investing, Business, Education, Self-improvement

4.4 • 1.3K Ratings

🗓️ 28 March 2023

⏱️ 10 minutes

🔗️ Recording | iTunes | RSS

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Summary

Jesse Cramer talks about having room for error Episode 2253: Room For Error by Jesse Cramer Jesse started The Best Interest in 2018. He was a mechanical engineer by day, working on satellite telescopes. But his passion was to help people improve their personal finances. He began writing to "learn in public," to help people, and to add genuine signal to an otherwise noisy Internet. Fast forward to now. So much has changed. -The Best Interest was nominated for 2022 "Personal Finance Blog of the Year" -Jesse has been on CNBC, MSN, the Motley Fool, Yahoo Finance, and more. -Jesse created a book with 30 other personal finance experts contributing a chapter each. -And Jesse left engineering. He now works for a fiduciary wealth management firm with one important mission: helping people achieve their financial goals. The original post is located here: https://bestinterest.blog/room-for-error/ Visit Me Online at OLDPodcast.com Interested in advertising on the show? https://www.advertisecast.com/OptimalFinanceDaily Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	This is Optimal Finance Daily, Episode 2253, room for error by Jesse Kramer of bestinterest.blog.
0:09.9	And on your host and personal finance enthusiast, Diana Mariam, I'm excited to be back with
0:15.0	you once again and grateful to have you here as we dive into yet another post about money.
0:22.0	So with that, let's get right into today's reading and start optimizing your life.
0:30.7	Room for error by Jesse Kramer of bestinterest.blog.
0:36.7	Room for error is one of my favorite problem solving frameworks.
0:41.1	To describe what I mean, Morgan Housel recently wrote, quote,
0:45.4	room for error is underappreciated and misunderstood.
0:49.4	It's usually viewed as a conservative hedge used by those who don't want to take on much risk.
0:55.2	But when used appropriately, it's the opposite.
0:58.8	Room for error lets you stick around long enough to let the odds of benefiting from a low probability
1:04.7	outcome fall in your favor, end quote.
1:08.3	I don't know what the future holds, neither do you.
1:11.4	But leaving room for error ensures I can roll with the punches.
1:15.6	I don't know all the answers right now, do you?
1:18.3	But room for error means I'll be okay.
1:21.4	From an investing point of view, I've created the following framework.
1:25.8	I don't need my annual returns to be 80% of investors.
1:30.2	I don't need to be remarkable, but I refuse to be beaten by 80% of investors.
1:36.2	I cannot be terrible.
1:38.2	So as long as I'm around average, consistently, my long-term prospects look good.
1:44.4	Of those three thoughts, the second is the most important.
	...

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