Just saw this. Yes, advice online can be tough to sift through, but bits and pieces from both can truly help those looking for their path. I think Dave is great on consumer debt, not so much on asset debt (the assets must be cash flow positive). As Ramit mentions, asking the question of why is very important, especially in 2024 (or 2023) due to the changing nature of the market and economy. The principles are great for both and many others, but unfortunately, the application has changed so much that it can be tough for those who are looking to build wealth to decide what to do. Very good overview.
That’s a great paper. There is optimal behavior, and there is behavior that people will take on. Sometimes getting people to act is more important than getting them to act perfectly.
Just saw this. Yes, advice online can be tough to sift through, but bits and pieces from both can truly help those looking for their path. I think Dave is great on consumer debt, not so much on asset debt (the assets must be cash flow positive). As Ramit mentions, asking the question of why is very important, especially in 2024 (or 2023) due to the changing nature of the market and economy. The principles are great for both and many others, but unfortunately, the application has changed so much that it can be tough for those who are looking to build wealth to decide what to do. Very good overview.
I’m debt-free because of Dave!
Congrats, Bernadette. That’s a great feeling. Thanks for your comment and for your readership.
Thanks, Dr. A! I finally subscribed and I am a paid member and reader.
BERNADETTE
We appreciate you. Your support means a whole lot to me and the students that get to work with me as RAs.
There's a fun paper out on comparing typical financial advice with economic theory. Lots of interesting differences between those two especially around using floating mortgages and overall consumption habits. My coverage here: https://www.nominalnews.com/p/new-research-highlights-january-2023 and the paper by James J. Choi here - https://pubs.aeaweb.org/doi/pdfplus/10.1257/jep.36.4.167
That’s a great paper. There is optimal behavior, and there is behavior that people will take on. Sometimes getting people to act is more important than getting them to act perfectly.