Optionality

Steve discusses an iPad purchase and its accompanying sheet music adventures. Tyler finds a surprise bank account. An acquaintance buys a house for cheap.

Having cash available is doubly beneficial--it protects you from unexpected risks and it lets you take advantage of unexpected lucky opportunities.

• (00:00) - Esoteric spreadsheets
• (05:37) - What is optionality?
• (10:16) - Risk and luck
• (13:19) - Savings gap
• (15:33) - Steve buys an iPad for sheet music
• (19:52) - Tyler squirrels away money so he'll forget about it
• (21:31) - How do you define financial independence?

Links:

• The Psychology of Money, by Morgan Housel
• YNAB Rule 2: Embrace Your True Expenses