← Maetis Principles
Maetis Principles · Card 7
Think Before You Spend
The question isn't 'Can I buy it?'It's 'What am I choosing instead?'
- The usual question
- The better question
- Can I afford it?
- What am I giving up?
Every purchase creates an opportunity cost. The question is never 'Can I buy it?' The better question is 'What am I choosing instead?'
Not 'can I buy it'; 'what am I choosing instead?'
In Practice
Before buying a stock "because everyone's talking about it," the real question is what you're choosing instead; the safer fund it would have gone into.
Generic Example
Before an impulse online order, the honest question isn't "can I afford it" but "what am I giving up instead."
Ask yourself
What am I choosing instead, if I say yes to this?