It took me a great deal of life experience to get my far from complete understanding of the financial world. Here is my attempt to capture in as few words as possible the right way to think about some financial terms.
Bank: An entity that aims to take you for about 3% of everything you own or owe each year.
Bonds: Payday loans to governments.
Car: The most expensive part of your self-image.
Commute: The most underestimated cost of both time and money.
Debt: A crushing burden that weighs down your life and dreams.
Expenses: Anything a salesperson calls an “investment”.
Government: An entity that transfers your tax money to its employees.
Inflation: An invisible force that slowly makes your retirement income worthless.
Insurance: Something sold using the illusion that it will prevent bad things from happening.
Insurance Company: An entity that pays small claims and denies large ones.
Investment Industry: All entities whose income comes solely from dipping into your savings.
Longevity Risk: Cat food.
Lottery Tickets: A common retirement plan whose success rate increases when combined with smoking.
Organization: An entity whose main function is to pay its administrators.
Payday Loans: The last lap in swirling down the financial toilet.
Smoking: A means of combating longevity risk.
Stocks: An overconfidence tax when bought. A fear tax when sold. A wealth generator when held in great variety for a long time.