While you might be thinking ‘I’m wired as differently as possible from an engineer’, I believe you’ll find great value in this simple walk through personal finance.
One of the most important things to take away: Always understand and remember your personal bias. In other words, know what you don’t know. Nash points out that engineers are at greater risk because they think they are rational but in reality they are not. His talk focuses on these main areas:
- You Are Not Rational (Behavioral Finance)
- Liquidity is Undervalued (Emergency Fund)
- Cash Flow Matters (Spend less than you Earn)
- The Magic of Compounding (Investment Returns & Debt Disasters)
- Good Investing is Boring (Asset Allocation)
Nash spends over half the time talking through the first subject – Behavioral Finance. I strongly believe this is the right balance – personal finance theory and strategies are very simple – changing personal behavior is not.