Chapter 3 - About Enough Flashcards
What is the primary lesson of Chapter 3 about wealth?
The primary lesson of Chapter 3 is recognizing when you have enough wealth. The constant striving for more can lead to dissatisfaction, drain energy, and potentially lead to unethical or risky decisions.
How does the chapter relate ‘Not Having Enough’ to fraud and risk?
The chapter discusses how ‘Not Having Enough’ can lead to fraud, as seen in the cases of Raj Gupta and Bernie Maddoff, and unnecessary risk, such as making bad investments or taking on too much debt.
What does the chapter identify as the hardest financial skill?
The chapter identifies the hardest financial skill as getting the goalpost to stop moving, implying the ability to recognize when one has enough wealth and to resist the urge to constantly strive for more.
How does social comparison factor into financial contentment, according to this chapter?
The chapter suggests that social comparison is a ‘never-stopping race’, often leading to dissatisfaction and a false sense of not having enough.
What does the chapter suggest about the concept of ‘enough’?
According to the chapter, recognizing ‘enough’ is not about being conservative but about understanding the potential dangers of an insatiable desire for more, including reputational risk, loss of loved ones, and compromise on freedom and independence.
