Net present value is one of those ideas that shows up everywhere once you know to look for it. Among other things, it’s what lets you make better decisions when you’re choosing between paying now or paying over time. Most people just compare total cost and stop there …

Epicurean finance is my term for a way of thinking about money. It isn't a historical school or a body of financial advice that Epicurus himself wrote. As far as I know, he did not leave behind a lost scroll on deductible selection or asset allocation. I use the phrase …

Invest in broad index funds. They are not just mathematically sound; they are psychologically easier to live with. Trying to beat the market makes bad years feel more personal, which makes the strategy harder to stick with during difficult periods. That makes broad indexing a strong fit for Epicurean finance …

Most insurance is not a great bet in expected-return terms. That is why self-insuring can look so appealing on paper. If you keep the premium money, invest it, and absorb losses yourself, you may well come out ahead over time. But that is not the whole story, because the pain …

When you want to make a large optional purchase but suspect you might be being impulsive, do not decide immediately. Take the money you already set aside for that possible purchase and put it into a short-term Treasury bill instead. The Treasury bill creates a waiting period while keeping the …

A financial system that requires constant attention will crack under pressure. It might look good on paper, but if it depends on fresh willpower, careful tracking, frequent judgment calls, and daily motivation, it will eventually run into the limits of a tired human being.

This is one reason money management …