What The Fat Wallet taught me (#245)

Like many of you, I have listened to every episode of The Fat Wallet Show. I’ve learned so much over the years, but I find it interesting that some lessons keep repeating. This week, Simon and I spend our last episode together reflecting on lessons we keep on learning. Think of this as the TL;DR version of 245 episodes of this incredible show. 

Here’s what we know for sure:

• Many people who listen to the show think their biggest financial decision is ahead of them when actually they’ve already made it: being an active participant in your own financial life is the best financial decision you’ve ever made.
• Emergency funds are more important than any other product we ever discuss, but you can’t tell because it’s boring.
• A bad plan is better than no plan.
• Time matters more than money. Lesegisha pointed this out using a kota as an example, so I also learned what a kota was.
• Fees matter at least as much as returns, if not more. Grant Locke explained why this is when OUTvest introduced its Onefee product. 100 years worth of market data support this.
• Because there are so many variables in the market, it’s worth being suspicious of people who sell certainty. Cash offers certainty. Fixed interest bonds offer certainty. Aside from that, forget it.
• “The best investment” doesn’t exist (but bad investments do). Taking positive action, keeping a close eye on things and learning as you go is the only way to do this. Start with what makes you comfortable and build from there. If that means a GIANT emergency fund and one fixed-interest bond in addition to your work RA, that’s as good a place to start as any.
• The habit of setting money aside matters more than where the money goes.
• There is no single right answer. In fact, there are as many ways to get to financial independence as there are people in the world. 
• ETFs are the market. When ETFs try to beat the market, they are no longer the market.
• The harder they shout, the farther I run. Wealth building is either silent and slow, or extremely hard and slow. 
• Just because someone says they’re doing something in the media doesn’t mean that’s what they’re doing. 

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Win of the week: Tim

I feel like you are both good friends due to the m