One of the best things I ever did for my financial mental health was not care about purchases below 0.01% (1/10,000th) of my net worth. So, if you have $10k, you shouldn't think twice about spending $1. If you have $100k, don't worry about $10, etc. I call this the 0.01% Rule.
@dollarsanddata Frees up bandwidth for the moves that genuinely matter in wealth building.
@dollarsanddata What’s one percent of $0?
@dollarsanddata I tried this until I came upon a $500 parking meter (NW: $5m) and it stopped working
@dollarsanddata So my net worth is multi seven figures? Does that mean I shouldn’t stress over any purchase $3000 or less?
@dollarsanddata How about monthly income? What would be the ratio then?
@dollarsanddata Such a crucial hack Makes decision making way easier Can apply this to other lifestyle choices that have a massive impact (for instance, hiring a VA) Cost higher than the .01% rule But the amount of time you get back is also 4x’d, so outsized value associated
@dollarsanddata Networth including home total value or just home equity
@dollarsanddata We use our own ratios similar to this @dollarsanddata if something is 3% or less than what our net income is each month? It's almost never a discussion if we can get it.