The 2X Rule (and Other Wealth-Accelerating Advice), with Nick Maggiulli

Afford Anything

Paula Pant | Cumulus Podcast Network

Entrepreneurship, Business, Investing

4.6 • 3.4K Ratings

🗓️ 13 April 2022

⏱️ 62 minutes

🔗️ Recording | iTunes | RSS

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Summary

#375: Here’s the deal: The majority of people who write about personal finance repeat the same tired aphorisms and cliches. “Millennials aren’t investing enough,” they’ll lament. “Millennials are amassing wealth at a slower pace than previous generations!” But when you ask for their source, they turn up blank. Each writer points to a headline, which sources another headline, in a neverending circular secondary-source-citation that fails to point to any primary data source. Nick Maggiulli doesn’t play that game. If you haven’t heard the name Nick Maggiulli yet, prepare to meet one of the most original, insightful voices in the media landscape of personal finance and investing. (His last name is pronounced “ma - julie,” and his godfather refers to him as “paper hands,” but that latter point is a different story for another day.) Nick is a data scientist with a knack for clear written communication, a rare Venn Diagram intersection of skill sets. He holds a laser-focused interest in the arenas of personal finance and investing, and he’s eager to share fresh, nuanced, evidence-backed takes about savings, spending and investing with anyone who will listen. He recently released his first book, Just Keep Buying; the title reflects a user-friendly reminder to continue dollar-cost averaging. It also speaks to the main idea behind wealth creation: accumulate income-producing assets, consistently, for as long as you possibly can. It’s an honor to welcome Nick Maggiulli onto the Afford Anything podcast for what I hope is the first of many appearances. In today’s episode, we discuss actionable strategies for managing your money, including assessing your spot along the save-invest continuum, implementing the 2X rule into your spending decisions, and saving half of your inflation-adjusted future raises. Enjoy! For more information, visit the show notes at https://affordanything.com/episode375 Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcript

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0:00.0	You can afford anything, you just can't afford everything.
0:11.5	Every choice that you make is a trade-off against something else and that doesn't just
0:14.6	apply to your money, that applies to your time, your focus, your energy, your attention,
0:18.9	any limited resource that you need to manage.
0:21.5	Saying yes to something implicitly carries an opportunity cost and that opens up two questions.
0:27.0	First, what matters most?
0:28.7	How do you align your decision making?
0:32.2	Both at the daily and at the big picture level, around that which matters most.
0:38.2	Answering those two questions is a lifetime practice and that is what this podcast is here
0:42.0	to explore and facilitate.
0:44.1	My name is Paula Pat.
0:45.1	I'm the host of the Afford Anything Podcast and today Nick Majouli joins us to talk about
0:50.1	why you should just keep buying.
0:52.6	I've been following Nick on Twitter for a long time and he, like Morgan Housel, like
0:56.6	James Clear,
0:58.3	he has a talent for questioning the dominant paradigms or the rehashed or repeated assumptions
1:04.8	that we often hear.
1:06.0	He questions those, backs it with data and does so in a way that is clear compelling and
1:10.4	tells a story.
1:12.3	Oftentimes in the financial press, you'll hear intellectually lazy, unbacked assumptions
1:17.2	that get repeated so often that they become part of the zeitgeist.
1:21.0	So for example, you might hear headlines repeat.
	...

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