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Behavioral economist Daniel Kahneman suggests that we have two selves: an experiencing self and a remembering self. . . . Your experiencing self lives in the present and is happiest spending time around people you like. . . .

The remembering self cares about story, and about appearances. . . .

Your remembering self cares about money and mobility deeply. Why? No one wants to be remembered as the person who “didn’t do anything with their life.” Getting rich and moving around a lot adds dramatic, tangible plot-points to your story, which comforts your remembering self greatly. But your experiencing self can easily be less happy. What if you are unable to turn your money into people you enjoy spending time with? What if you move away from the people and places that bring you joy?

— Dave Troy

Is $1 million really better than a good cup of coffee?

Someone has trademarked the phrase “The Latte Factor,” referring to his claim that you could save the $3.50 a day you’re spending on little things like coffee, invest it, and wind up with millions of dollars.

I don’t doubt that under a certain set of assumptions, that’s true — although under another set of assumptions, you could invest the money and lose it all, in which case you’ve got no lattes and no money).

Continue reading The Latte Factor